Sun Acquisitions

APRIL 26, 2024

As organizations embark on these transformative journeys, one critical aspect that demands meticulous consideration is the financing model. The risk-reward equation in M&A financing is a delicate balance, where potential pitfalls and gains play a pivotal role in shaping the merged entity’s future.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Valutico

FEBRUARY 27, 2024

The WACC represents the overall cost of financing a company’s operations and is used to discount future cash flows to their present value. The WACC is used in DCF because it represents the average rate of return required by all the stakeholders (both equity and debt holders) to support the company’s operations.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52

Brian DeChesare

MARCH 13, 2024

Debt financing is much more common, and the GE firm is often the first institutional investor. The main risk factor in deals is executing the growth plan, not default risk due to debt (PE) or product/market risk (VC). Also, you can get in more easily from a middle-market or boutique bank.

Equity 90

Equity Start-ups Marketability Banking 90