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M&A Blog #17 – valuation (Comparable Company)

Francine Way

Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). The multiples calculation then proceeded as follow: Market Capitalization = Share Price * Fully-diluted Shares Outstanding. Enterprise Value = Market Capitalization + Total Debt - Total Cash.

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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

The range of value: Typically depends on performance variables (sales, margins, and capital requirements). Any structural elements that affect the equity value: Typically includes differences between public vs. private valuations, minority vs. control premiums, insider ownership, sizeable equity offerings, etc.

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08-20-2023 Newsletter: Sunday Reading

OfficeHours

Private equity involves investing capital directly into private businesses that are not publicly traded on stock exchanges (that would be a hedge fund). Limited partner private equity shops are generally firms that raise capital (funds) and deploy that capital in various investments headed by a GP.

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Interim Guidance on Stock Buyback Excise Tax Confirms Broad Application to M&A and Capital Market Transactions

Cooley M&A

The Inflation Reduction Act imposes a 1% excise tax on certain repurchases of stock of publicly traded US corporations (“Covered Corporations”) effected after December 31, 2022 (the “Excise Tax”). [1] This post highlights key guidance from the Notice as it relates to common M&A and capital market transactions.

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The Rise of Hedge Funds: Exploring Their Impact on Financial Markets

OfficeHours

Hedge funds are significant players in financial markets given the size of their capital bases and the frequency of their trading. Market Liquidity Hedge funds are large and active players in nearly every financial market, including equities, publicly traded credit, options, futures, commodities, etc.

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Is Private Equity Right for You?

OfficeHours

Private equity involves investing capital directly into private businesses that are not publicly traded on stock exchanges (that would be a hedge fund). Limited partner private equity shops are generally firms that raise capital (funds) and deploy that capital in various investments headed by a GP.

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10-23-2023 Newsletter: Why Take-Private Dealmaking Remains Attractive for PE Investors

OfficeHours

First, private equity identifies the publicly traded company they believe is undervalued or could perform better as a private entity without the pressures of being a public entity (e.g. After the acquisition, the previously public company is delisted from its stock exchange, whether the NYSE, NASDAQ, etc. This will be helpful!

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