Francine Way

MAY 18, 2017

Before we move on to the buy-side and sell-side process of M&A next week, I’d like to wrap up this week by discussing the other capital structure component / tool: equity. If you are a homeowner, you know that equity is the part of the home value that you actually own (as opposed to be owned by the bank).

M&A

Mergers and Inquisitions

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Debt

Francine Way

JULY 17, 2017

This current post about Leveraged Buy Out (LBO) is about a valuation method used by a very specific type of financial acquirer: private equity (PE) firms. Building a historical 3-statement model and a debt-interest schedule. Building the go-forward debt-interest schedule. Building a proforma balance sheet.

Valuation

Francine Way

JULY 13, 2017

Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). Determining the year-by-year future non-equity claims from the latest 10-K, especially those that will occur during the forecast horizon, and their combined present value. Enterprise Value = Market Capitalization + Total Debt - Total Cash.

Valuation

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). Determine the year-by-year future non-equity claims from the latest 10-K, especially those that will occur during the forecast horizon, and their combined present value. Derive Free Cash Flow to Firm (FCFF).

Discounted Cash Flow

Francine Way

JULY 20, 2017

The 1st one for today is the Tangible Book Value (TBV) method. It bases the enterprise value calculation on the balance sheet equity and deduct any intangible assets (goodwill, customer lists, etc.). Equity value is determined by deducting par-value liabilities from reduced-value assets. Inventories: at 50-80% of book value.

Valuation

How2Exit

MAY 20, 2024

Barnett is also an accomplished author with multiple books on topics related to investing in local businesses, franchising, and buy-sell strategies, with his latest book set to release in the fall. rn Key Takeaways: rn rn rn Typical leverage for large public companies is between 50-60% debt; anything higher is considered risky.

Business

Sun Acquisitions

SEPTEMBER 9, 2022

If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. In this post, we’re going to address what these are, some of the challenges to expect, how to sell the equity, and who to sell it to. Selling equity – the good, the bad, the ugly.

Equities

Focus Investment Banking

NOVEMBER 27, 2023

At this year’s West Coast M&A/Private Equity Forum, which took place on September 28th in East Palo Alto, those differences were on full display. A bot might be able to write a term paper, or a song, or even a book, but that bot cannot be considered “intelligent” until it decides by its own volition to write that paper or song or book.

Private Equity

Wall Street Mojo

JANUARY 18, 2024

It may also be stated as a statement of the total debit and credit balances extracted from the various accounts in the ledger to examine the mathematical exactness of the books. At the end of every accounting period the accounting books are to be closed and preparing the trial balance is the first step towards it.

Accountant

Lake Country Advisors

AUGUST 8, 2024

This metric provides a quick snapshot of a company’s total equity value as perceived by the stock market. This valuation reflects the market’s assessment of the company’s equity value based on its stock price and the number of shares available.

Discounted Cash Flow

The Deal

SEPTEMBER 7, 2023

In his time at Bain, a Boston-based private equity sponsor, he had seen the evolution of multistrategy credit businesses at sponsors, and he believed there was an opportunity to provide outside counsel on credit deals, which often evolve quickly. A transaction may start as a debt deal and end up as a hybrid or equity deal, Ramanathan said.

Book-building

How2Exit

MAY 22, 2023

By doing this, Walker would have access to revenue, infrastructure, cash flow, customers, and he would own all of the equity of the company. In 2018, Walker released his book “By Then Build” which was inspired by this idea. He found a book printing company that was doing eight million in revenue.

Business

Francine Way

JULY 11, 2017

The primary country sector return on equity (ROE) metrics (optional): Can be obtained through country specific sector ROE online resources commonly published by the country’s government’s economic / commerce / banking department or central banks. The primary country market risk premium: Can be obtained from sources such as Damodaran Online.

Valuation

The TRADE

FEBRUARY 14, 2024

In a panel at the JSE SA Trade Connect 2024 conference in Cape Town, South Africa, panellists explored the ways in which fragmentation is impacting the trading of dual listed equities in the South African market. But at the same time, some of this liquidity is not necessarily always going to be available to everybody.”

Trading

Mergers and Inquisitions

MAY 10, 2023

The basic difference is that the international bulge bracket banks tend to be stronger in M&A advisory and weaker in equity and debt capital markets. The deal types span a wide range, but equity and debt deals are more common than M&A since many companies in emerging markets are in “growth mode.” 7,200 | U.K.:

Investment Banking

Wall Street Mojo

JANUARY 4, 2024

read more is that amount of interest, which is due for a debt or bond but not paid to the lender of the bond. Similarly, a company that has debts in its books will have to report the amount of interest accrued for the bonds it has lent. Still, the same is not received or paid in the same accounting period.

Accountant

Peak Frameworks

SEPTEMBER 11, 2023

The use of SPVs, as in the example above, requires deep understanding and careful execution, making it an essential skill for professionals in private equity and investment banking. For instance, a company laden with debt could transfer some of it to an SPV, thereby reducing its debt-to-equity ratio.

IT

The TRADE

JULY 21, 2023

The moves follow the exchange’s launch of a new market-making framework in December last year, aimed at boosting market liquidity, providing depth for order books, and enhancing price efficiency and price formation.

Trading

Mergers and Inquisitions

MAY 24, 2023

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action.

Funds

Razorpay

JULY 25, 2023

Separate accounts are created to manage income, assets, liabilities, equity, etc. The accounting book reflects that the payments are computed well, managed and cleared out on time. Further, instances of bad debts and defaulters are managed by a corporate accountant. Such responsibility is maintained under corporate accounting.

Accountant

Global Newswire by Notified: M&A

AUGUST 13, 2025

Treasury debt “Mesa’s third-quarter results reflect the significant operational and financial restructuring that we have undergone,” said Jonathan Ornstein, Mesa Chairman and CEO. “We Further, we anticipate the pro forma cash and debt balances of the combined company post-Merger closing to be in excess of $300 million and approximately $1.1

Mergers

IBG

SEPTEMBER 11, 2024

That is especially true when the buyer is a private equity group or other type of “financial” buyer, which is the case in seven out of 10 deals that we have closed over the last several years. Strengthen your ratios: working capital, debt-to-equity, “quick,” price-to-earnings, return on equity, etc.

Sale

How2Exit

MAY 2, 2023

The impact of higher interest rates is felt in the form of debt servicing ratios. This is the amount of debt that a business can take on in order to finance an acquisition. When interest rates increase, banks are less likely to provide financing as the debt servicing ratio becomes more difficult to meet.

Sale

The TRADE

OCTOBER 26, 2023

Its focus is to provide investors with the liquidity needed to trade equity and fixed-income products in any market condition. Optiver Optiver has gone from strength to strength in recent years, developing a unique European cash-equity franchise thanks to its expertise in options and ETF market making. billion compared to € 2.8

Electronics

Focus Investment Banking

OCTOBER 30, 2023

Lower margins, in many cases, make these businesses unattractive to all but a small handful of financial investors like private equity groups, who look to invest, build a company up and then often sell to a larger private equity group. The debt in an ESOP is very, very difficult to restructure,” says Beard. “In It's deferred.

Debt

Mergers and Inquisitions

MAY 31, 2023

This is the first time I’ve ever reviewed a book, movie, or TV show multiple times. The show is also highly relevant to finance because entire seasons revolve around mergers, acquisitions, private equity, and shareholder revolts. And yes, there’s even a plot point about debt covenants , of all things. Now it is over.

Finance

Francine Way

JUNE 22, 2020

Specifically, they should be interested in what each party brings to the transaction, each party’s equity share in NewCo, and the issues / risks associated with the transaction. Cash balance on the books without Restricted Cash. Negative equity balance. Any debt drawdown and paydown schedule. Working Capital deficit.

Valuation

The TRADE

OCTOBER 26, 2023

The move has opened up swathes of synergy opportunities for the pure fixed income asset manager, with its traders now working directly alongside RBC BlueBay Asset Management’s equities desk. Everyone wants it [credit] to trade like in an equity world where you want to buy Microsoft and there is only one Microsoft stock to buy.

Trading

Wall Street Mojo

JANUARY 17, 2024

In contrast, the financing activities involve all transactions that affect the equity and liabilities of a company. read more and balance sheet Balance Sheet A balance sheet is one of the financial statements of a company that presents the shareholders' equity, liabilities, and assets of the company at a specific point in time.

Accountant

Successful Acquisitions

SEPTEMBER 11, 2023

However, other scenarios, like liquidation, replacement cost, or book value, demand entirely different approaches. Cost of Capital: The cost of capital, a critical factor, combines the cost of equity and debt weighted by the firm’s capitalization. Understanding the premise is the first step towards a successful valuation.

Valuation

Mergers and Inquisitions

JULY 5, 2023

Investment Banking League Tables Definition: IB league tables “rank” banks over specific periods based on their involvement in a certain industry, region, or deal type, such as M&A transactions or equity offerings. These tables exist so that banks can state in their pitch books : “Look! 50 transactions), or fees (e.g., $200

Investment Banking

Mergers and Inquisitions

JANUARY 10, 2024

By contrast, investment banking is more about advising companies on transactions such as M&A deals , equity and debt deals , and restructuring. The first few years are very tough because you start from nothing – but if you build a decent book, the job gets easier since you’ll have consistent revenue from long-term clients.

Investment Banking

Mergers and Inquisitions

SEPTEMBER 11, 2024

Renewable Energy Investment Banking Definition: In renewable energy investment banking, bankers advise companies in the solar, wind, biofuel, storage, battery, smart grid, electric vehicle, hydrogen, hydroelectric, and carbon capture verticals on equity and debt issuances, asset deals, and mergers and acquisitions.

Investment Banking

How2Exit

AUGUST 28, 2023

rn Ronald shares what he's seeing as the behavior of private equity firms in the current market. rn Concept 6: Tailored Due Diligence Services For Clients rn One key aspect of conducting due diligence is ensuring that the business being acquired is financially stable and can cover its debt.

Mergers and Acquisitions

Mergers and Inquisitions

JULY 17, 2024

People have argued for years that equity deals “dominate” IB activity in India, but this is a bit of a stretch if you look at the fees by product type: Deals themselves are diversified across different sectors. They’re mostly supporting pitch books and deal execution in other regions, not working on domestic deals from start to finish.

Investment Banking

iMerge Advisors

APRIL 14, 2025

Buyers whether strategic acquirers or private equity firms will typically expect at least GAAP-compliant financials. While not every company needs an audit, here are scenarios where theyre strongly recommended or expected: Enterprise value exceeds $10M$15M Private equity buyers are involved Complex revenue models (e.g.,

Sale