Liability for Non-Disclosure in Equity Financing

Harvard Corporate Governance

Notably, the damage payment received by the outside investors is offset in part by the reduced value of their equity stake. Posted by Albert H. Choi (University of Michigan) and Kathryn E. Spier (Harvard Law School), on Friday, April 22, 2022 Editor's Note: Albert H. Choi is Paul G. Kauper Professor of Law at the University of Michigan and Kathryn E. Spier is Domenico De Sole Professor of Law at Harvard Law School. This post is based on their recent paper.

Debt vs. Equity Financing: Which is better?

Equilest

Debt vs. Equity Financing: Which is better? According to the finance theory - there are two basic ways to finance the activity of a business - equity and foreign capital. So which of the alternatives is better - equity or foreign capital? .

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What Are M&A Sources of Capital?

Benchmark Report

First, the financing needs to be raised with consideration of the company's operating cash flows. For example, if the business uses debt financing, it should have sufficient funds to cover the interest and repay the debt.

Orchestra BioMed™ Announces Strategic Collaboration, Closing of $110 Million Private Equity Financing and Plans to List on Nasdaq Through Merger with Health Sciences Acquisitions Corporation 2

Benzinga

Investors in $110 million Series D financing include Medtronic and Terumo as well as lead investor RTW Investments and founding investor Perceptive Advisors. Business Combination and completed private equity financing are structured to ensure total gross proceeds of a minimum of $180 million, which is expected to fund the combined company into 2026 based on current plans and estimates. The Series D financing was not contingent on the consummation of the Business Combination.

European fintechs muscle up through flurry of mergers

Financial Times M&A

Plus, US fintech acquisitions tumble, and why Secfi chief Frederik Mijnhardt thinks equity financing reaps benefits all round

Elon Musk Plans $6.25B More In Equity For $44B Twitter Deal

Law 360 M&A

billion in equity financing to acquire Twitter Inc., Elon Musk on Wednesday promised an additional $6.25 according to a U.S. Securities and Exchange Commission disclosure, a move that comes just a week after the Tesla Inc.

Musk Outlines $7.1B In New Financing For Twitter Takeover

Law 360 M&A

billion in new equity financing for his $44 billion Twitter takeover, receiving commitments from the likes of multibillionaire Larry Ellison, Sequoia Capital Fund and Fidelity Elon Musk on Thursday outlined more than $7.1

Weekly Roundup: April 22-28, 2022

Harvard Corporate Governance

Liability for Non-Disclosure in Equity Financing. The Corporate Calendar and the Timing of Share Repurchases and Equity Compensation. Tags: Equity-based compensation , Executive Compensation , Incentives , Long-Term value , Repurchases. Posted by the Harvard Law School Forum on Corporate Governance, on Friday, April 29, 2022 Editor's Note: This roundup contains a collection of the posts published on the Forum during the week of April 22-28, 2022.

What Is Optimal Capital Structure?

Andrew Stolz

The optimal capital structure of a firm is the right combination of equity and debt financing. Debt financing may have the lowest cost, but having too much of it would increase risks to the shareholders. Cost of equity . Definition of Optimal Capital Structure.

What is Weighted Average Cost of Capital (WACC)?

Andrew Stolz

The WACC is the average cost of raising capital from all sources, including equity, common shares, preferred shares, and debt. Formula: [Cost of Equity * % of Equity] + [Cost of Debt * % of Debt *(1 – Tax Rate)] + [Cost of Preferred Stock * % of Preferred Stock].

What is the Modigliani–Miller Theorem?

Andrew Stolz

The first proposition of the M&M says that the value of leveraged firms (capital structure with a mix of debt and equity) and unleveraged firms (capital structure with only equity) are the same. Business valuation Equity Analysis Investing finance investing valuation

Why Excess Cash Impedes Your Growth

Value Scout

By lowering the equity-financed portion of cash, we can lower the most expensive portion of the COC. It results in consistent destruction of capital and business risk increases, resulting in lower business value over the book assets and equity.

Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions.

Sullivan & Cromwell Discusses the Implications for Financial Institutions of Proposed SEC Climate Disclosure Rules

Reynolds Holding

In particular, the disclosure of Scope 3 greenhouse gas emissions (which capture financed emissions) and climate scenario analysis will likely be mandatory for many financial institutions. Disclosures of financed emissions, which typically represent the most significant portion of financial institutions’ “overall” GHG emissions, present a unique challenge because the calculations or estimates of such emissions can be difficult to obtain on a reliable and timely basis.