OfficeHours

OCTOBER 23, 2023

Written by a top OfficeHours Coach; Original article published on October 16, 2023 In today’s world, there is much uncertainty around public markets. 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.

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Mergers and Inquisitions

MARCH 13, 2024

Debt financing is much more common, and the GE firm is often the first institutional investor. Most of this guide deals with the “late-stage VC” strategy, as dozens of other articles cover private equity strategies such as leveraged buyouts and traditional private equity. What accounts for the difference?

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Mergers and Inquisitions

MAY 29, 2024

This article will focus on careers and recruiting , while the accompanying YouTube video will discuss the technical/modeling aspects in more detail. Many of these assets last for decades , have stable/predictable cash flows , use substantial Debt (50 – 60%+ of the total price), and use sized and sculpted Debt.

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OfficeHours

JUNE 6, 2023

There are many other articles on Office Hours about this process, so be sure to check them out. 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.

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Mergers and Inquisitions

OCTOBER 30, 2024

Treasury: Focus on cash flow rather than Net Income and the Income Statement ; forecast the company’s cash flow needs and set up the equity or debt required to get the necessary cash in place; invest the company’s short-term cash to earn something on it and handle foreign exchange (FX) rate and other types of hedging. Potentially, yes.

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Focus Investment Banking

SEPTEMBER 19, 2024

For buyers, who rely heavily on debt financing to fund acquisitions, a rate cut—especially one larger than expected—creates immediate opportunities. Here’s how: Lower Cost of Debt Private equity firms typically use leverage (borrowed capital) to finance a significant portion of their acquisitions.

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Sun Acquisitions

FEBRUARY 14, 2024

This article explores the significance of matching financial plans to business acquisition goals and how this synergy can lead to prosperous outcomes. Diversification: Diversifying your business portfolio can be a prudent goal. Debt Financing: Debt financing involves borrowing money to fund your acquisition.

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Sun Acquisitions

FEBRUARY 28, 2024

The business world is dynamic, and growth often requires expanding one’s portfolio through strategic acquisitions. In this article, we will delve into the system for success in tailoring your approach to business acquisition while also exploring the critical factors influencing financing choices.

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Wall Street Mojo

JANUARY 17, 2024

Article Link to be Hyperlinked For eg: Source: Convertible Securities (wallstreetmojo.com) The convertible securities are preferred over non convertible securities for investments, given the lesser payout involved and more fruitful returns expected. Convertible securities combine features of both debt and equity instruments.

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Mergers and Inquisitions

OCTOBER 16, 2024

An older version of this article from ~15 years ago addressed this question, and you can find dozens of other articles that suggest answers. For that, please see the articles on the investment banking career path , exit opportunities , etc. Are Bad Why Investment Banking Over Other Careers? The post Why Investment Banking?

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Wall Street Mojo

JANUARY 17, 2024

Article Link to be Hyperlinked For eg: Source: Cut Off Rate (wallstreetmojo.com) This risk-adjusted cut off rate method is a popular concept in financial management. Examples Frequently Asked Questions (FAQs) Recommended Articles Key Takeaways The cut off rate is a key concept in capital budgeting and financial management.

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Mergers and Inquisitions

MAY 24, 2023

I’ll do a deep dive into the entire space in this article, including the top funds, example trades, recruiting, exit opportunities, and more. Distressed / Restructuring – These funds invest in the debt or equity of distressed companies or ones entering the bankruptcy process.

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Mergers and Inquisitions

MARCH 13, 2023

In this “emergency article,” I’ll cover: Exactly what happened , including some points I haven’t seen mentioned elsewhere. Remember that, normally, a bank issues loans and then finds the liabilities (deposits, debt, etc.) billion loss on a $21 billion portfolio. It’s the second-biggest bank failure in U.S. to back them.

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How2Exit

JULY 15, 2024

He has extensive experience with venture-backed startups and has recently expanded his portfolio by acquiring another business in the podcast production space, specifically targeting financial advisors. And there's a whole way you can do this with debt so you don't even have to put much money down."

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Wall Street Mojo

FEBRUARY 9, 2024

Article Link to be Hyperlinked For eg: Source: Lower Middle Market (wallstreetmojo.com) This segment of the market typically is the largest in all world economies as over 90% of the companies fall in this group and, therefore, plays a significant role in depicting the national economy. Even capital assets are used in this form of borrowing.

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Mergers and Inquisitions

FEBRUARY 28, 2024

Partially, it’s an issue of accessibility: Everyone understands what happens to the stock price if a company beats earnings… …but few people understand what it means if a company is set to violate a debt covenant on page 214 of its credit agreement. see the fixed income trading article for the full list ).

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Equities Asset Management Debt Recruitment 59

Mergers and Inquisitions

JULY 31, 2024

We covered these three main segments in the industrials investment banking article , and they also apply here. In the early days of institutional private equity, many industrial companies were perceived to be stable, cash-flow-generation machines with significant hard assets that could be used as collateral for debt. billion – $2.1

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Wall Street Mojo

JANUARY 17, 2024

Article Link to be Hyperlinked For eg: Source: Interest Rate Swap | Examples | Uses | Swap Curve (wallstreetmojo.com) In this context, vanilla swap is widely used in the market. We look at Interest Rate Swaps in detail in this article, along with examples – Learn more about Swaps, valuation, etc.

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Mergers and Inquisitions

JANUARY 31, 2024

Portfolio Structure: Unlike MM portfolios, SM portfolios do not have to be market–neutral or based on pair trades; many SM funds also tend to run much more concentrated portfolios (e.g., This is especially common in areas like distressed debt investing that depend heavily on catalysts.

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Wall Street Mojo

JANUARY 18, 2024

read more regularly invest in such bonds issued by a sovereign government, and it forms a major part of their investment portfolio. It refers to the possibility that the lender may not receive the debt's principal and an interest component, resulting in interrupted cash flow and increased cost of collection.

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Peak Frameworks

MAY 8, 2024

This means that in the event of legal action or debt defaults, members' personal assets like homes, cars, and savings remain shielded. This allows for strategic business alliances and diversified investment portfolios. Filing Articles of Organization: A formal document filed with the state.

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OfficeHours

AUGUST 20, 2023

You must be able to consider long-term goals, assess risk, and craft plans to enhance the value of portfolio companies. 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).

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How2Exit

AUGUST 28, 2023

We have over 25 different options for what someone can select for different types of due diligence." - Roman Beylin rn rn Article: rn Roman Beylin: Revolutionizing Due Diligence with DueDilio rn In this thought leadership article, we explore the innovative platform DueDilio and its founder and CEO, Roman Beylin.

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Peak Frameworks

MAY 22, 2023

In this article, we'll explore the different types of mean and their limitations, ensuring that you can apply this knowledge with confidence. Weighted Average Cost of Capital (WACC) Companies use the weighted mean to determine their cost of capital, which is the weighted average of the costs of debt and equity financing.

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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.

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Mergers and Inquisitions

JANUARY 10, 2024

Some of these client differences relate to the distinction between private wealth management and private banking; for more on that, you should review the the private banking article. By contrast, investment banking is more about advising companies on transactions such as M&A deals , equity and debt deals , and restructuring.

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Sun Acquisitions

JANUARY 26, 2024

This article delves into the intricacies of strategic M&A within the paving sector, underscoring the synergies that bolster market positioning and business value. Acquiring a paving business that fills gaps in a company’s portfolio can rapidly extend its service offerings.

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Sica Fletcher

JUNE 20, 2024

This is even more interesting when we view the rate of return for these insurance agencies, which has actually dropped below the cost of acquiring debt for a transaction, creating a negative spread for the first time in M&A history. It used to be the case that equity structures consisted of senior debt (i.e.,

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Mergers and Inquisitions

NOVEMBER 1, 2023

They do not invest in risky biotech startups attempting to cure cancer (at least not within their traditional PE portfolios). For more on this, please see our healthcare investment banking article. Why is Private Equity Interested in a “Boring” Sector Like Healthcare Services? to consolidate their market power in specific regions.

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Mergers and Inquisitions

JULY 19, 2023

Non-Equity Funds – Finally, it is difficult to “short” certain securities effectively, such as distressed debt and many types of credit (especially structured products ). Also, many long-biased funds tend to have more concentrated portfolios since they often aim to become one of the top shareholders in each company.

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FineMark

OCTOBER 17, 2023

Rather than trying to predict the future, we prefer to construct solid portfolios, focus on longer-term investable themes, and identify third-party manager talent with demonstrable (and persistent) alpha-generation ability. To secure that higher income for the future, we’ve begun to extend portfolio duration.

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Midaxo

APRIL 25, 2023

Introduction This article showcases how ChatGPT can serve as an effective M&A consultant by demonstrating how it can be used to help develop a best practices-based M&A playbook. Customer base: Consider companies with a customer base that complements or expands your company’s existing client portfolio.

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FineMark

APRIL 13, 2023

This scenario will have a disproportionate, negative effect on both commercial real estate borrowers and small-to-medium-sized businesses that aren’t large enough to access the public debt markets. To best leverage AI, this investment theme will be implemented within our clients’ portfolios as appropriate.

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Lake Country Advisors

AUGUST 28, 2024

Equally critical is the evaluation of liabilities, including debts and loans, which profoundly affect your business’s market value. Understanding the strategic objectives of potential buyers can help you identify those who see your business as a valuable addition to their portfolio.

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GillAgency

FEBRUARY 10, 2022

If that is the case, you must read our article – How to sell my business fast. How this article is organized We have written this article from your perspective, that of a seller. But if you do decide to go about this on your own this article will help you. You can read articles from credible sources.

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Growth Business

AUGUST 3, 2023

Cash from a previous exit Serial entrepreneurs – in the unlikely event they’re reading this article – can use money from a previous investment too. It’s also crucial to do research on the investors themselves: what they invest in, their portfolio and their recent investments. How much could I raise?

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Growth Business

MARCH 1, 2024

Capital is available, valuations have started to normalise and the debt markets are still supportive – albeit with greater scrutiny and higher costs. This article was originally published by Michael Somerville on 14 September 2018.

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