Musings on Markets

FEBRUARY 10, 2021

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Reynolds Holding

FEBRUARY 12, 2023

Startup founders are retaining more equity and control over their companies, and contrary to past practice, some VCs say they will never remove a founder. At the same time, startups are taking unprecedented risks – defying regulators, growing in unsustainable ways, and racking up billion-dollar losses.

Finance 59

Finance Firm-specific Risk Equity Specific Risk 59

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

Brian DeChesare

JULY 27, 2022

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. Long a Credit Pool and Short Specific Tranches – For example, you could long a mortgage-backed security pool but bet against specific tranches by shorting them or using CDS.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Harvard Corporate Governance

NOVEMBER 21, 2022

1] Although each company will need to assess its own material risks and tailor its risk factor disclosure to its unique circumstances, this alert provides a list of 10 key developments in Part I and four important drafting considerations in Part II that all public companies should consider as they update their risk factors.

Technology 251

Technology Marketability Compliance Finance 251

Reynolds Holding

FEBRUARY 1, 2023

billion acquisition of Activision Blizzard, Broadcom’s $61 billion acquisition of VMware and Adobe’s $20 billion acquisition of Figma, as well as a number of large private equity-backed deals, including the $16.5 billion acquisition of Citrix Systems by affiliates of Vista Equity Partners and Evergreen Coast Capital, Zendesk’s $10.2

Finance 45

Finance Equity Technology Banking 45

Reynolds Holding

OCTOBER 5, 2022

According to Cornerstone Research, although new filings remain consistent with the first half of 2021, the number of approved settlements is up over 30% from the same time last year, and the median settlement amount has rebounded from the low that we reported in our 2021 Mid-Year Securities Litigation Update.

Start-ups 72

Start-ups Marketability Equity Compliance 72