Francine Way

JUNE 22, 2020

It has been roughly three years since my last blog post at the completion of my fellowship. To pick up where we last left off with valuation, I will cover the topic of a Merger Relative Valuation in this blog post and move on to other non-valuation topics from here. Any debt drawdown and paydown schedule.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

Francine Way

JULY 10, 2017

There are also structural differences of past acquisitions to take into account. Do they have the cash of debt/equity capacity to bid aggressively? It is calculated as the Equity Value plus Net Debt plus Preferred Stock plus Minority Interest. The status of the acquirer’s own share price will impact its acquisition currency.

Valuation 130

Valuation M&A Equities Shares 130

Francine Way

JULY 20, 2017

So many factors influence the value of a company (financial performance, growth prospects, perfomance of peer companies, past transactions, the use of debt, the payment of dividends, the context of the transaction, and more). This post wraps up our valuation discussion.

Valuation 130

Valuation M&A Business IT 130

Francine Way

JULY 19, 2017

So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring. Well, in the real world, there is no certainties in business. Grays exist more than black and white; multiple possibilities exist, leading to multiple outcomes.

Valuation 130

Valuation M&A Stock DCF 130

OfficeHours

JUNE 5, 2023

Balancing debt and equity components are crucial to minimizing the cost of capital while maintaining financial flexibility. In general, this focus on cash flow will enable timely debt servicing and can allow the acquired company to bounce back stronger than ever before being taken public or spun off to another private equity firm.

Private Equity 147

Private Equity Valuation Equities Debt 147

Midaxo

OCTOBER 12, 2023

In this follow-up blog post, we’ll outline key takeaways and provide additional insights from questions cut for time to help you master these critical processes. Operational debt is as serious as tech debt. Additional Q&A with Mart Lumeste: Q: How Do You Uncover and Evaluate the Extent of Technical Debt?

Debt 147

Debt Architecture Business Mergers and Acquisitions 147

OfficeHours

OCTOBER 20, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates. Great, I’m learning a ton!

Investors 130

Investors Private Equity Equities Debt 130

OfficeHours

AUGUST 25, 2023

In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x. This capital is released once investors buy the debt off the banks’ balance sheets.

Private Equity 130

Private Equity Equities Debt Finance 130

OfficeHours

JUNE 6, 2023

Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.

Private Equity 147

Private Equity Equities Debt Investment 147

OfficeHours

OCTOBER 16, 2023

For the average person, rising interest rates are not ideal for those with significant amounts of debt, those looking to purchase a home with a mortgage, or many other use cases. Once the cash available is used to service the debt, whatever is left over is paid as dividends and used to calculate returns for private equity investors and LPs.

Investors 130

Investors Private Equity Debt Equities 130

OfficeHours

JUNE 30, 2023

To go from equity value to enterprise value, add the net debt (debt minus cash) of the company to equity value. Step 3: Calculate Debt and Equity Funding Amounts (Sources & Uses) Since LBOs are financed using a combination of debt and equity, you’ll need to determine how much of each will be used in the transaction.

Private Equity 130

Private Equity Equities Debt Recruitment 130

OfficeHours

OCTOBER 17, 2023

Existing Debt The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could hang over their head as a large liability. How are you liking these recent blog posts? Yes, I’m interested! No, I’m not Login or Subscribe to participate in polls.

Private Equity 130

Private Equity Debt M&A Investment 130

OfficeHours

JULY 4, 2023

Getting someone to listen Read More Blogs Visit OfficeHours Blog and follow us on our social media accounts: Instagram , YouTube , TikTok , and Twitter for our latest updates. I’m Good On The Prep, I Just Need Help Getting Interviews” Interviewing is part art, part science. appeared first on OfficeHours.

Sale 130

Sale Private Equity Recruitment Equities 130

OfficeHours

OCTOBER 23, 2023

Even in 2022, when take-private deals hit a new record, they only accounted for 37% of the total value of transactions. Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm , as with a typical transaction. Great, I’m learning a ton! This will be helpful!

Investors 130

Investors Private Equity Equities Investment 130

Sun Acquisitions

NOVEMBER 7, 2022

The long and short is yes, it’s possible, however, there’s a series of considerations from the Small Business Administration (SBA), the holder of your PPP loan debt that you need to comply with. You want to be free of this debt as soon as possible. Perhaps you’ve asked, “Can I sell my business if I got a PPP loan?”.

Business 98

Business Mergers and Acquisitions Sale Debt 98

OfficeHours

OCTOBER 16, 2023

Existing Debt : The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could be hanging over your head as a large liability. I like to take advantage of whatever employer-sponsored account is provided to me (HSA, FSA) to cover some of these types of expenses.

Debt 113

Debt Investment Healthcare Accountant 113

OfficeHours

OCTOBER 16, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates. investment banking, private equity , VC, etc.)

Investors 100

Investors Private Equity Debt Equities 100

OfficeHours

JULY 18, 2023

For example, whereas 10 independent veterinary clinics might each have their own human resources and accounting functions, a roll-up platform will have centralized functions that can be shared across multiple clinics. This begs an important question: why do roll-ups receive a higher value than smaller acquisition targets?

Private Equity 130

Private Equity Equities Investment Mergers and Acquisitions 130

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in valuing a target company. The advantage of this method is that it takes into account the development of the company, rather than simply the historical financials. As a result, the value of the company lies in its ability to repay the debt.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Cooley M&A

SEPTEMBER 25, 2020

In a May blog post we discussed several initial observations regarding the dozens of M&A transactions that were signed prior to March 2020 and that were in jeopardy as a result of COVID-19. In other words, the specific performance remedy is conditional, and neither buyer nor the sponsor can be forced to close without the debt financing.

Debt 40

Debt Finance Finance Private Equity 40

OfficeHours

OCTOBER 16, 2023

Even in 2022, when take-private deals hit a new record, they only accounted for 37% of the total value of transactions. Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm, as with a typical transaction. investment banking, private equity , VC, etc.)

Investors 100

Investors Private Equity Equities Debt 100

OfficeHours

MAY 16, 2023

One widely cited estimate is that hedge funds account for around 5-6% of total equity trading volume in the US. Additionally, liquidity is important for governments because it gives them access to debt markets to sell securities to fund deficits. According to a report by Hedge Fund Research, Inc., trillion in assets globally.

Financial Market 130

Financial Market Funds Risk Management Trading 130

OfficeHours

JULY 18, 2023

It quickly became uneconomical for exploration and production companies to keep on drilling, meaning there was no need for the equity and debt capital that was typically raised on a quarterly basis. The same thought process can be used when deciding whether it makes sense to take out debt or instead finance an expenditure with your savings.

Investment Banking Analyst 130

Investment Banking Analyst Funds Recruitment Investment Banking 130

Sun Acquisitions

FEBRUARY 14, 2024

In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control. Debt Financing: Debt financing involves borrowing money to fund your acquisition.

Acquisitions 59

Acquisitions Business Debt Finance 59

OfficeHours

AUGUST 20, 2023

On the other hand, working at a GP shop, your firm will source the deal and put together all the pieces, including raising equity and coordinating debt (together known as the capital stack, or cap stack for short). No, I’m not Check Out All Our Blog Posts Why OfficeHours & Why Now? Yes, I’m interested!

Private Equity 130

Private Equity Equities Investment Banking Finance 130

Focus Investment Banking

JUNE 5, 2023

When it comes to measuring working capital for an M&A transaction, there are several considerations that should be taken into account. In the tire business, most M&A deals follow a "cash-free, debt-free" structure, where the buyer gets to keep the cash in the bank, but long-term debt is the seller's responsibility.

M&A 52

M&A Capital Management Mergers and Acquisitions 52

OfficeHours

JUNE 6, 2023

Naturally, proficiency in Excel is of the utmost importance, but ensuring you understand the right financial model is equally important; be sure to practice your paper LBO and Excel debt-focused models through courses to give yourself an edge. Understand the Firm Research the private equity firm thoroughly. and how our process works.

Private Equity 147

Private Equity Equities Financial Modeling Financial Models 147

Razorpay

FEBRUARY 6, 2024

In this blog, we share the Latest TDS rate chart for the Financial Year 2024-25 and Assessment Year 2025-26 to help you calculate and pay TDS error-free. TDS rate on salary means that tax has been deducted by the employer at the time of depositing the salary into the employee’s account. 10,000 10% 10% 194 Payment of dividend Rs.

Insurance 98

Insurance Government Business Bank 98

Focus Investment Banking

DECEMBER 19, 2023

“Investment bankers and leveraged buyout investors in the 1980’s adopted EBITDA as a tool for figuring out whether a company had a profitability needed to service the debt that would need to be taken on to buy the company.” It accounts for the sustainability of a company's cash generation over time.

Debt 52

Debt Profitability Investment Retail 52

Sun Acquisitions

OCTOBER 21, 2024

With asset-based lending, companies can use their accounts receivable, inventory, or other tangible assets as collateral to secure a loan. Mezzanine Financing: Mezzanine financing offers a hybrid form of debt and equity financing that can be used to fund M&A transactions.

M&A 59

M&A Finance Finance Business 59

Sun Acquisitions

JULY 21, 2023

In this blog post, we will explore the role of due diligence in successful M&A transactions and why it should be a top priority for companies. It also includes analyzing cash flow, debt obligations, and potential liabilities.

M&A 52

M&A Mergers and Acquisitions Negotiation Mergers 52

OfficeHours

AUGUST 9, 2023

On the other hand, working at a GP shop, your firm will source the deal and put together all the pieces, including raising equity and coordinating debt (together known as the capital stack, or cap stack for short). You can also check our various course curriculums for different careers (i.e. investment banking, private equity , VC, etc.)

Private Equity 130

Private Equity Equities Investment Banking Investment 130

OfficeHours

AUGUST 7, 2023

Start with assumptions towards the top, followed by sources and uses, the income statement, cash flow build, debt schedule, and finally returns. When you first start the model, make sure to follow a clean structure so that your interviewer can follow along, whether you present the model live or send it to them via email.

Investment 130

Investment Business Underwriting IT 130

Focus Investment Banking

DECEMBER 5, 2024

In the tire and service industry, buyers and investors will scrutinize revenue streams like tire sales, repair and service sales, fleet maintenance agreements, and national account business. Most of the transactions that we see in the tire and service space are asset sales on a cash-free debt-free basis.

Business 52

Business Sale Negotiation Investors 52

Sun Acquisitions

NOVEMBER 1, 2024

This blog post will explore how technology is reshaping M&A activities and provide strategic insights on how businesses can prepare for successful mergers and acquisitions in a tech-driven world. Still, modern M&A must also evaluate the target company’s technology stack, cybersecurity posture, and data assets.

Mergers 59

Mergers Mergers and Acquisitions Business Acquisitions 59

Sica Fletcher

JUNE 2, 2020

This blog is an effort to answer that question. Furthermore, as we have reported in previous blogs, these agencies already had their equity and debt capital lined up before the full force of the pandemic hit. As a result, they had and continue to have large pools of equity and debt capital to deploy in acquisitions.

Insurance 52

Insurance Broker Private Equity M&A 52

The M&A Lawyer

SEPTEMBER 23, 2015

In this post on The M&A Lawyer Blog, I will: introduce the concept of Material Adverse Effect and explain its principal functions, present pro-buyer and pro-seller versions of MAE definitions and explain how, and why, they differ, including with respect to forward-looking language and common qualifications, and.

M&A 130

M&A Mergers and Acquisitions Negotiation IT 130