Brian DeChesare

SEPTEMBER 20, 2023

No Right or Wrong Answers – Some technical questions have correct answers, but many market and investment ones do not. There are better and worse explanations for your answers, but in the absence of time travel, VC interviewers can’t determine if your startup investment pitch was “correct.” Which market is attractive?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Reynolds Holding

APRIL 4, 2023

Recent innovations in financial technology, or “FinTech,” are enabling the fractionalization of shares of stock, bonds, and other investment securities into units (“fractionalized securities”) that are small enough for virtually any investor to afford. For perspective, we observe that FinTech itself has been around for decades.

Finance 69

Finance Marketability Banking Business Enterprise 69

Reynolds Holding

MARCH 21, 2023

Panuwat (a recent case in which the head of business development at a pharmaceutical company traded in the stocks of a competitor) has reinvigorated the debate on the consequences of shadow trading and the extent to which it ought to be regulated. Imagine that the CEO of a major corporation must decide between two corporate investments.

Marketability 105

Marketability 105

Brian DeChesare

MARCH 13, 2024

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.

Equity 90

Equity Start-ups Marketability Banking 90

Sun Acquisitions

NOVEMBER 7, 2022

In this post, we explore what those terms are and how you can satisfy each one to sell your company. When: At least 20% of the common stock or the ownership interest is sold or transferred; At least 50% of the assets are transferred or sold; Your company is merged with another business. Pathway #2 A 50% or Less Stock Sale.

Business Valuation 98

Business Valuation 98

Brian DeChesare

NOVEMBER 16, 2022

Mainstream news sources have already covered the story extensively, so I want to take a different angle and comment on how “the smart money” fell for this scam and what it could mean for careers in finance. I thought about writing an article on the 2022 U.S. It raised over $1.8

Start-ups 52

Start-ups Banking Finance Technology 52

Value Scope

APRIL 9, 2021

The value of a good or service also depends on all of the qualitative and intangible benefits that may not directly lead to a monetary benefit or may even have no monetary benefit at all. How do you measure that? Not too many people frame stock certificates, or bank statements. 1] But the concept of value is complex.

Fair Market Value 130

Fair Market Value Marketability Finance Intangible Assets 130

Value Scope

APRIL 9, 2021

The value of a good or service also depends on all of the qualitative and intangible benefits that may not directly lead to a monetary benefit or may even have no monetary benefit at all. How do you measure that? Not too many people frame stock certificates, or bank statements. Click to Download: Transcending Fair Market Value.

Fair Market Value 130

Fair Market Value Marketability Finance Intangible Assets 130

Musings on Markets

NOVEMBER 9, 2021

If you review those valuations, you will notice that in each valuation, my story for the company expanded, and my valuations increased, but the market price for the company jumped even more, leading me to conclude in each of them that it was not a company that I would invest in.

Start-ups 99

Start-ups Dividends Marketability Market Capitalization 99

Brian DeChesare

AUGUST 31, 2022

Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. If the stock price goes up or down by 10%, but the volatility stays the same, you might not earn or lose anything on the trade.

Banking 64

Banking Risk-free Rate Equity Start-ups 64

Reynolds Holding

JULY 17, 2023

The opinion answered the first question by analyzing the term “investment contract” found throughout the securities laws under the Howey doctrine. [1] The opinion answered the first question by analyzing the term “investment contract” found throughout the securities laws under the Howey doctrine. [1] The analysis requires two steps.

Finance 98

Finance Marketability 98

Musings on Markets

FEBRUARY 15, 2023

The first is to see how the increase in inflation in 2021 and 2021 has played out in profitability for companies, since inflation can increase profits for some firms, and lower them for others. In this post, I will focus on trend lines in profitability at companies in 2022, with the intent of addressing multiple questions.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Musings on Markets

NOVEMBER 10, 2022

In my last post, I used Facebook's recent troubles to talk about the importance of corporate governance, and how we, as investors, have abandoned the power to change management at many younger tech companies in return for being able to invest in young tech companies, with growth potential and well-regarded founders.

Finance 74

Finance Start-ups Equity Equity Financing 74

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

Brian DeChesare

JANUARY 31, 2024

In other words, they’re the public face and brand of their fund, and all investment decisions flow through them. This setup creates many differences with multi-manager (MM) hedge funds , from investment styles to recruiting and careers. 10 – 15 positions rather than 100+).

Start-ups 59

Start-ups Equity Marketability Banking 59

Musings on Markets

JANUARY 19, 2022

Leading into 2021, the big questions facing investors were about how quickly economies would recover from COVID, with the assumption that the virus would fade during the year, and the pressures that the resulting growth would put on inflation. The year that was.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Reynolds Holding

MARCH 6, 2023

Gande and Lewis, 2009; Hadlock and Sonti, 2012) show that stock prices drop when a firm or its peers are sued. However, a less researched question is how firms respond to a perceived increase in litigation risk (or ex-ante litigation risk). Securities litigation has become a major source of risk to businesses. Many studies (e.g.,

Finance 49

Finance Marketability 49

Reynolds Holding

APRIL 4, 2022

It’s great to be with you all at this event, particularly as the University of Pennsylvania is my alma mater. I was over at Wharton, and what I knew of the law school is that the library stacks were a great place to study. It was so quiet there, though I don’t know if that’s still the case. It went defunct in 2007. We should be technology-neutral.

Marketability 65

Marketability Banking Start-ups Compliance 65

Musings on Markets

NOVEMBER 15, 2022

In the second post, I pointed to inconsistencies in how accountants classify operating, capital and financing expenses , and the consequences for reported accounting numbers. Facebook, I argued, is a corporate autocracy, with Mark Zuckerberg at its helm.

Start-ups 90

Start-ups Marketability Market Capitalization Technology 90

Musings on Markets

FEBRUARY 12, 2022

In the midst of all the action, to no one's surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports. to 14.9%. to 14.9%.

Market Capitalization 98

Market Capitalization Equity Marketability Start-ups 98

Musings on Markets

DECEMBER 21, 2022

If your query is why I would continue to teach rather than seek out more lucrative careers in investing or banking, my answer is a simple one. If your query is why I would continue to teach rather than seek out more lucrative careers in investing or banking, my answer is a simple one.

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Musings on Markets

JULY 1, 2022

In 2022, as bond rates have risen, stock prices have fallen, and crypto has imploded, even true believers are questioning what the bottom for markets might be, and when we will get there. In every asset class, there is a range of investment choices, with some being safer (or even guaranteed) and others being riskier.

Marketability 88

Marketability Risk Premium Start-ups Equity 88

Lighter Capital

JULY 20, 2023

Types of debt financing and what startups should know How to decide what’s best for your startup What is debt financing? Debt financing is a method for raising capital in which a business or entrepreneur borrows money from a lender or bank, then repays it at a later date, with interest, according to the terms in the repayment agreement.

Debt Financing 52

Debt Financing Finance Equity Equity Financing 52

Musings on Markets

JUNE 9, 2021

The company files a prospectus, providing prospective investors with information about its business model and financials, and hires an investment banker or bankers to manage the issuance process. For decades, the process that companies in the United States have used to go public has followed a familiar script. What is a SPAC?

Start-ups 52

Start-ups Marketability Banking Corporate Finance 52

Reynolds Holding

NOVEMBER 28, 2022

They argue that individuals and institutions would feel confident investing in crypto coins in a familiar, regulated environment. The core assumption behind this view is that crypto coins are financial assets – like shares of stock, bonds, or commodity contracts – though particularly complicated ones housed on blockchain ledgers.

Finance 145

Finance Banking Marketability Treasury 145

Brian DeChesare

JUNE 29, 2022

Activist Hedge Fund Definition: An activist hedge fund accumulates sizable stakes in companies to gain operational/financial influence and persuades Boards and management teams to enact their desired changes; they profit based on increases in companies’ stock prices after these changes take place.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

IBG Business

OCTOBER 28, 2022

First, it helps to understand how a professional buyer structures a purchase. “At For potential sellers, focusing on the future, knowing your objectives in selling, and understanding what motivates buyers can reveal the best time to put your business on the market. Is now that time? Conventional wisdom might cause you to say no.

Start-ups 52

Start-ups Equity Marketability Banking 52

Valutico

SEPTEMBER 22, 2023

Key Takeaways: Market cap is extensively used for publicly traded companies because it provides a straightforward way to gauge a company’s value based on the stock price and the number of outstanding shares. How Do I Value a Business? In this article we explore some of the main valuation methods, including when to adopt them.

Intangible Assets 52

Intangible Assets Discounted Cash Flow Book Value EBITDA 52

Reynolds Holding

SEPTEMBER 9, 2022

The Securities Act of 1933 was about companies raising money from the public. They understood that, when advisers manage someone else’s money, there may be additional opportunities for conflicts of interest between those advisers and clients. FDR called this law the “Truth in Securities Act.”. Congress knew the job still wasn’t done.

Marketability 49

Marketability Compliance Start-ups Banking 49

Musings on Markets

JANUARY 27, 2021

As stock and bond markets went through these gyrations, it should come as no surprise that the same forces were playing out in other markets as well. As stock and bond markets went through these gyrations, it should come as no surprise that the same forces were playing out in other markets as well.

Start-ups 52

Start-ups Marketability Equity Treasury 52

Reynolds Holding

APRIL 23, 2023

They both knew how important it was to protect investors and promote our capital markets. Rayburn was not new to the issues of stocks and bonds. In his first term in Congress, he sponsored a bill on railroad stocks and bonds that passed the House but failed in the Senate. [1] Thank you for inviting me to testify today.

Treasury 45

Treasury Marketability Finance Technology 45

Reynolds Holding

DECEMBER 17, 2023

Congress could have said in 1933 or in 1934 that the securities laws applied only to stocks and bonds. Instead, Congress included a long list of 30-plus items in the definition of a security, including the term “investment contract.” I was pleased to support the Commission’s decision for three reasons.

Marketability 45

Marketability Compliance Technology Finance 45

Musings on Markets

DECEMBER 15, 2021

For much of the last two years, rather than teach my classes in a classroom, I taught my classes from my home office, making a few low-cost, low-tech investments to improve my set up. After thirty six years of teaching, you would think I would be jaded, but I am not. allowed me to deliver my classes from home, with some help.

Corporate Finance 56

Corporate Finance Finance Start-ups Technology 56

Musings on Markets

MARCH 25, 2021

The answers are not academic, since they cut to the heart of how stockholders will do over the rest of the year, and whether value investors will finally be able to mount a comeback. The Interest Rates Story To me the biggest story of markets in 2021 has been the rise of interest rates, especially at the long end of the maturity spectrum.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Value Scout

DECEMBER 15, 2022

Wesray and Gibson stockholders invested $1 million. Gibson Greeting raised the rest of the money by selling and leasing its manufacturing and distribution centers, making the actual price $54 million. Borrowed money finances the buyout to pay for the investment. GE Credit Corporation purchased 2.3 billion total in 2018.

Equity 52

Equity Finance Dividends Compliance 52

Musings on Markets

JANUARY 8, 2022

This post will be one of a series, where I will put different aspects of financial data under the microscope, to get a sense of how companies are adapting (or not) to a changing world. Not surprisingly, Moneyball has found its way into business and investing as well. Happy New Year, and I hope that 2022 brings you good tidings!

Risk Premium 91

Risk Premium Start-ups Market Capitalization Corporate Finance 91

Reynolds Holding

APRIL 28, 2022

With nearly half of the households in the United States having their pension plans and life savings invested in mutual funds, understanding the risk-taking behavior of mutual funds is thus of prime importance for investors. In a recent paper, we investigate mutual fund managers’ risk sentiment and their subsequent actions.

Alpha 64

Alpha Finance Marketability 64