Musings on Markets

MARCH 19, 2022

The graph below shows the sovereign spreads for Russia and Ukraine in the weeks leading up and including the conflict: The sovereign CDS spread for Russia, which started the year at 1.70% soared above 25%, just after hostilities commenced, and were trading at 10.56% on March 16, after rumors that peace talks were underway brought them down.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

IT Valuations

MARCH 23, 2022

It can be frustrating thinking that you’re doing all the right things (streamlining your processes, reducing operational costs, providing best-in-class services), but then continuing to come up short. Buyers are hyperaware of what to look for when reviewing another company’s financials, especially if they’re looking to buy the business.

Start-ups 52

Start-ups Banking Marketability 52

Brian DeChesare

APRIL 5, 2023

When you ask most people about their “career goals,” they sound something like this: Make a lot of money or gain power/prestige. Take little-to-no risk. And work normal, stable hours. But one possible exception lies in sovereign wealth funds (SWFs) , which are similar to funds of funds in some ways.

Equity 59

Equity Start-ups Private Equity Firm Banking 59

Musings on Markets

JANUARY 27, 2021

It is a measure of value (used to tell you how much a product or service costs), a medium of exchange (facilitating the buying and selling of products and services) and a store of value (allowing people to save to meet future needs). Currencies : A currency serves three functions.

Start-ups 52

Start-ups Marketability Equity Treasury 52

Musings on Markets

JANUARY 12, 2021

Last week, was my data week, where I download and analyze data on all publicly traded companies, listed anywhere in the world, and I will post extensively on what the numbers look like after a most tumultuous year. As we approach the turn of the calendar year, I have my own set of rituals that prepare me for the new year. What I teach.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Brian DeChesare

JANUARY 19, 2022

Portfolio Company Exits – PE firms are better at buying companies than selling them or taking them public. 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. So what’s the difference?”. There are many other differences as well.

Private Equity Firm 72

Private Equity Firm Banking Equity Finance 72

Musings on Markets

DECEMBER 2, 2020

While some of that money has been spent on internal improvements, much of it has been spent acquiring more than two dozen companies, most of them small, technology businesses. In this post, I will argue that there are good reasons for Airbnb's IPO timing, and make my first attempt at valuing this latest entrant into public markets.

Start-ups 52

Start-ups Marketability Equity Market Capitalization 52

Musings on Markets

SEPTEMBER 19, 2023

Coming in the week after ARM, an AI chip designer, also filed to go public, but with an estimated pricing of $55-$60 billion, it is an indication of how much the ground has shifted under Instacart since the heady days of 2020, when Instacart was viewed by some Americans as the only thing that stood between them and starvation.

Start-ups 102

Start-ups Marketability Technology Equity 102

Musings on Markets

NOVEMBER 1, 2023

At regular intervals, though, the company steps on its own story line, creating confusion and distractions, and during these periods, its stock price is quick to give up gains, and that has been the case for the last few weeks.

Start-ups 114

Start-ups Marketability Market Capitalization Equity 114

IBG Business

MARCH 16, 2023

I know that doesn’t excite you, but any other buyer is going to find that bubble gum under there, so you’re not going to do any better than this.’ “‘We can close this in two weeks, at this price and terms, or you can go back to market and run into the same thing and be at the same place a year from now.’” Now we understood the Tahiti analogy.

Start-ups 52

Start-ups Marketability Equity Banking 52

Musings on Markets

AUGUST 15, 2023

I was reminded of that paper a few weeks ago, when Fitch downgraded the US, from AAA to AA+, a relatively minor shift, but one with significant psychological consequences for investors in the largest economy in the world, whose currency still dominates global transactions. What is a risk free investment?

Risk-free Rate 80

Risk-free Rate Treasury Risk Premium Start-ups 80

Musings on Markets

SEPTEMBER 11, 2023

Tennis fans, getting ready to watch the US Open on ESPN, were apoplectic, as their televisions went blank in the middle of matches, and Disney, in addition to encouraging them to complain to Spectrum, offered them an option of switching to Hulu+ Live TV , a streaming service alternative to cable.

Start-ups 77

Start-ups Market Capitalization Marketability Technology 77

Brian DeChesare

JUNE 22, 2022

Yes, NY is usually the safest bet if you want to keep your options open, don’t care about specific industries, and don’t mind the city’s current state. Certain industries have risen and fallen out of favor over time, and banks’ reputations and strengths in different regions have also changed. average team size vs. “culture”).

Banking 89

Banking Start-ups Finance Marketability 89

Musings on Markets

AUGUST 5, 2023

Just in the last few weeks, I have seen a Wall Street Journal article put the equity risk premium at 1.1%, a Reuters report put it at 2.2%, and a bearish (and widely followed) money manager estimate the equity risk premium to be negative. What is it? The risk premium that you demand has different names in different markets.

Risk Premium 78

Risk Premium Equity Start-ups Treasury 78

Musings on Markets

APRIL 20, 2021

The Biden Administration's $ 2 trillion infrastructure plan, announced with fanfare a few weeks ago, has opened up a debate about not only what comprises infrastructure, but also about how to pay for it. Not surprisingly.

Start-ups 52

Start-ups Debt Financing Finance Equity 52

Musings on Markets

DECEMBER 10, 2023

Can one person make a difference to the value of a business? Of course, and with small businesses, especially those built around personal services (a doctor or plumber’s practice), it is part of the valuation process, where the key person is valued or at least priced and incorporated into valuation. Key Person: Who, what and why?

Key Person Discount 113

Key Person Discount Start-ups Price to Book Marketability 113

Brian DeChesare

JULY 27, 2022

Credit hedge funds might be the most consistently overlooked buy-side opportunity. In other words, you buy one bond to earn the interest it pays and sell it if/when its price increases, and you borrow another bond, sell it, pay the interest coupons to the counterparty, and buy it back if/when its price decreases.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Musings on Markets

FEBRUARY 3, 2021

Buying back shares at the market price will have no effect on the value per share or price per share of the remaining shares, even though the earnings per share may increase as a result of decreased share count. I am not an expert on the latter two, and I am not sure that I have that much that is original to say about the first.

Start-ups 52

Start-ups Equity Marketability 52

FE International

MARCH 14, 2018

As the market-leading advisor for online business sales, the team at FE International answers questions every day about the best practices of selling an app business. As the market-leading advisor for online business sales, the team at FE International answers questions every day about the best practices of selling an app business.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52

Reynolds Holding

APRIL 11, 2022

In light of the recent increased volatility in the global financial markets, 1 a number of companies have raised questions regarding the desirability of repurchasing shares at reduced market prices.

Banking 45

Banking Marketability Equity Compliance 45

Musings on Markets

SEPTEMBER 1, 2021

That includes not just foreign companies, seeking to operate in China, but domestic companies, who, while benefiting from Beijing's backing, knew how quickly the iron fist could replace the velvet glove, in their dealings with the government. As China's economy has grown, its financial markets have also found their footing, albeit at a slower pace.

Market Capitalization 98

Market Capitalization Marketability Start-ups Technology 98

FE International

JANUARY 3, 2021

Before we get into the technical side, it is important to understand the context of why e-commerce has become so popular and mainstream which has driven a lot of the buyer and investor demand to buy these businesses, regardless of their size. Coding Best Practices. Understanding Financing Options. So, how have we ended up here?

EBITDA 59

EBITDA Start-ups Finance eCommerce 59