Valutico

DECEMBER 15, 2022

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Brian DeChesare

MAY 15, 2024

Private equity value creation came on my radar a few years ago when I noticed something: Even though traditional PE deal roles were not doing well, “operational” or “value creation” teams still seemed to be recruiting. What Does the Private Equity Value Creation Team Do in Real Life? Why is PE Value Creation Suddenly “Hot”?

Equity 75

Equity Private Equity Firm Start-ups EBITDA 75

Musings on Markets

MARCH 19, 2022

The Lead In To understand the market effects of the Russia-Ukraine conflict, we need to start with an assessment of the two countries, and their places in the global political, economic and market landscape, leading in. Ukraine, a part of the Soviet Union, has had its shares of ups and downs, and its economic footprint is even smaller.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

FEBRUARY 27, 2023

That may reflect the concern that once a person or entity starts borrowing to fund its needs, it is easy to overuse debt, and risk its wellbeing in the process. To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Valutico

JANUARY 17, 2023

billion and $327 million respectively, up 39% and 141% year-on-year. After a breathtaking performance for one and a half years starting in 2020, the company suffered a dismal few months. by using the Discounted Cash Flow method, specifically our Flow-to-Equity approach, as well as a Trading Comparables analysis. billion to $41.6

Discounted Cash Flow 52

Discounted Cash Flow Market Capitalization Equity Start-ups 52

Musings on Markets

FEBRUARY 15, 2023

To set the stage, I will start by laying out the differences measure of earnings that reported on an income statement: At the top of the profit ladder is gross income , the earnings left over after a company has covered the direct cost of producing whatever it sells.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Valutico

DECEMBER 4, 2023

Many Netflix originals prove to be performing well which is part of the reason why they expect their Q4 revenue to be $8.7B, up 11% year-over-year. After this dramatic shift downward, Netflix was able to regain some consumer confidence and they have started to reclaim some of their lost ground.

Discounted Cash Flow 52

Discounted Cash Flow Start-ups EBIT EBITDA 52

Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Musings on Markets

JULY 27, 2022

grow at the cost of equity), yielding about ?46 In addition, the growth has come in fits and starts, and given Zomato's active acquisition strategy, it is not clear how much of the revenue growth is organic and how much is acquired. higher (i.e., 46 in July 2022.

Risk Premium 81

Risk Premium Start-ups Equity Marketability 81

Brian DeChesare

SEPTEMBER 14, 2022

The commonality is that they can be useful side doors into the finance industry, especially if you got started late , earned lower grades , or did not complete enough internships : What is a “Credit Analyst”? Loan to Value, Debt / EBITDA, and EBITDA / Interest), their financial statements, and how they compare to peer companies.

Finance 79

Finance Banking Corporate Finance Start-ups 79

Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 96

Price to Book Dividends Beta Equity 96

Brian DeChesare

DECEMBER 21, 2022

But let’s start with my favorite topic: “ranking” banks, schools, and maybe a TV series or three. will move off the “up-and-coming elite boutique” list as it merges with CS/FB. Does the list vary for private equity and hedge funds ? Interest rates and inflation are up, and deals and bank hiring are way down.

Banking 85

Banking Start-ups Finance EBITDA 85

Musings on Markets

FEBRUARY 27, 2022

In this post, I will look at corporate profitability, in all its different dimensions, and how companies across the globe, and across industries, measured up in the most recent years. As companies from around the globe look to Asia for growth, the ensuing competition is pushing margins down there, relative to the rest of the world.

Start-ups 80

Start-ups Equity Book Value Marketability 80

Brian DeChesare

FEBRUARY 28, 2024

While everyone seems to know about equity research and trading stocks, fixed income research gets far less attention. Equity Research vs. Fixed Income Research Common Myths What Do You Do as a Fixed Income Research Analyst or Associate? Each role has common analytical elements, but the specifics and deliverables differ (e.g.,

Equity 59

Equity Banking Start-ups Finance 59

Musings on Markets

OCTOBER 12, 2023

The effect of impact investing in the inclusionary and exclusionary paths is through the stock price , with the buying (selling) in inclusionary (exclusionary) investing pushing stock prices up (down), which, in turn, decreases (increases) the costs of equity and capital at these firms. in the 1998-2010 time period to 5.95

Market Capitalization 82

Market Capitalization Enterprise Value Start-ups Marketability 82

Brian DeChesare

MARCH 8, 2023

But a few related areas, such as commodity desks at banks, commodity trading advisors (CTAs), and physical commodity trading shops could put up a good fight for that “most cyclical” title. Some IB natural resource groups could potentially work, but if you want to be a trader, you’re still much better off starting in S&T.

Finance 109

Finance Start-ups Banking Alpha 109

Brian DeChesare

MAY 17, 2023

Ever since the 2008 financial crisis, there has been massive hype about both private equity and technology. Over the past few decades, technology private equity has gone from “barely existing” to representing the largest single sector in PE by both deal value and deal count. Why Did PE Firms Start Buying Tech Companies?

Equity 64

Equity Technology Private Equity Firm Start-ups 64

Benzinga

APRIL 23, 2024

portfolio lease rate at 3/31/24 (40th consecutive quarter above 96.0%) 179,464 square feet of anchor space leasing currently lined up 12.2% net principal debt-to-annualized EBITDA ratio for 1Q‘24 (vs. stated, "As 2024 gets underway, we are off to a solid start. HIGHLIGHTS $11.0 per diluted share) $37.9 per diluted share) 5.7%

Dividends 40

Dividends Intangible Assets EBITDA Start-ups 40

Benzinga

MAY 3, 2022

Q1 2022 consolidated Adjusted EBITDA (as defined and reconciled below) of $87.0 In January 2022, Rattler acquired a 10% equity interest in BANGL, a long-haul NGL pipeline joint venture, for $22.2 First quarter 2022 Adjusted EBITDA (including non-controlling interest and as defined and reconciled below) was $87.0 130,437.

EBITDA 40

EBITDA Equity Start-ups Marketability 40

Brian DeChesare

OCTOBER 12, 2022

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. That said, much of it is better than the junk found on generic websites about how to start a hedge fund. How Does It Work?

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Brian DeChesare

AUGUST 10, 2022

But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Midstream: 85 (mix of asset deals, M&A, debt, and even some private equity activity). Downstream: 31 (mix of everything, but no private equity activity).

Banking 87

Banking EBITDA Dividends Equity 87

Brian DeChesare

JANUARY 19, 2022

According to some, you do almost no modeling or technical work in this group, and it’s one of the easier jobs in IB, similar equity or debt capital markets. But if you read other accounts, FSG runs models, Analysts get hands-on technical work, and the hours could be longer and more stressful because your clients are private equity firms.

Private Equity Firm 76

Private Equity Firm Banking Equity Finance 76

FE International

APRIL 20, 2022

At the lower end of the market, individuals are still leaving their jobs to buy businesses and at the higher end, institutional investors and private equity firms have more capital available than ever before. Without a doubt, Amazon FBA is an excellent place for e-commerce businesses to set up shop. multiple of SDE or EBITDA.

Private Equity Firm 98

Private Equity Firm Equity Start-ups Business Valuation 98

Class VI Partner

JULY 28, 2021

Start with this exit checklist. Balance Sheet A Balance Sheet is an accounting record for a company that lists a company’s assets, liabilities, and shareholders’ equity. Cap tables do not include debtors to the business, only those who have some equity (like shares in a corporation, or membership interest in an LLC).

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Musings on Markets

NOVEMBER 10, 2022

It is in pursuit of answering these questions that accountants generate financial statements, and the three most basic are: The balance sheet , which summarizes what a firm owns and owes at a point in time, as well as an estimate of what equity is worth (through accounting eyes).

Finance 74

Finance Start-ups Equity Equity Financing 74

FE International

MARCH 23, 2022

If you want to understand how to value a business, the first question is whether to look at a multiple of SDE , EBITDA or Revenue. SDE vs. EBITDA vs. Revenue. A new benchmark of earnings before interest, taxes, depreciation and amortization ( EBITDA ) is employed. For most businesses, the valuation benchmark debate stops there.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105

IBG Business

JANUARY 31, 2023

The professional buyer is also better equipped to make the deal ‘just business,’ and that’s an advantage over a first-time seller who built the company from nothing into something great and feels like they are giving up their first-born.” Many business owners are by nature self-sufficient and unaccustomed to relying too much on others.

Start-ups 52

Start-ups EBITDA Private Equity Firm Compliance 52

IBG Business

FEBRUARY 25, 2022

A business with sales of $5 million and up needs a complete and solid lineup of officers and directors. Is it headed up or down? Many companies lease their real estate needs, outsource their payroll, have their manufacturing done offshore, or have UPS handle their logistical needs. Start the process. Grow in size.

Private Equity Firm 40

Private Equity Firm Start-ups Marketability EBITDA 40

Brian DeChesare

JULY 26, 2023

But over the years, they morphed into a well-known topic and then a commonly derided topic – as many people argue that search fund experience is worthless, while others claim it’s “just as good” as working in banking or private equity. Before delving into the details, I want to start by explaining the industry: What is a Search Fund?

Banking 52

Banking Equity Start-ups Private Equity Firm 52

IBG Business

JANUARY 9, 2023

In states that have not caught up, local professionals in business sales should consider activities to help their states effect changes to align with the new Section 501 requirements. earnouts, recapitalizations, retained equity/rollover, or. See other articles by John Johnson: “ A Guide to EBITDA and What It’s Worth ”.

Treasury 52

Treasury Start-ups EBITDA Compliance 52

Value Scout

FEBRUARY 24, 2023

Private equity firms provide meaningful investment capital to growth-oriented businesses. Unlike venture capital firms, they do not invest primarily in start-ups. Businesses seeking expansion, change of investors, or even exit may benefit from private equity firms.

Private Equity Firm 52

Private Equity Firm Equity Start-ups Dividends 52

FE International

APRIL 13, 2022

At the lower end of the market, individuals are still leaving their jobs to buy businesses and, at the higher end, institutional investors and private equity firms have more capital available than ever before. We started getting approached by interested buyers about a year before we exited, unsolicited. Featured Deal: Newor Media.

Private Equity Firm 52

Private Equity Firm Equity B2C Start-ups 52

Brian DeChesare

APRIL 13, 2022

They all think they can make a fortune buying and selling stocks; in other words, they’re fans of the long/short equity strategy. When the average person thinks of hedge funds, long/short equity is often the first thing that comes to mind. Probably 90% of hedge fund stock pitches use long/short equity or related strategies.

Equity 91

Equity Start-ups Banking Marketability 91

Brian DeChesare

MAY 24, 2023

But, as usual, I want to start with the definitions and fund types: What is an “Event-Driven Hedge Fund”? A long/short equity fund could find an undervalued company, like it for reasons A, B, and C, and argue that its price will increase by 50%. EBITDA multiple , matching its own. revenue and 11.5x

Equity 64

Equity Start-ups EBITDA Banking 64

Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Equity 79

Equity Book Value Start-ups Corporate Finance 79

Musings on Markets

JANUARY 5, 2024

First, these categorizations were created close to twenty years ago, when I first started looking a global data, and many countries that were emerging markets then have developed into more mature markets now. Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Costs of equity & capital 1.

Dividends 98

Dividends Risk Premium Equity Book Value 98