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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). Enterprise Value = Market Capitalization + Total Debt - Total Cash. Not every company has a publicly traded peer group comparables (private company or wholly-owned subsidiary peers might exist), some companies might be the only one of their kinds.

Valuation 130
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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

Do they have the cash of debt/equity capacity to bid aggressively? The differences between the two are: Equity Value: This is the residual value to common shareholders after all debts and secured liabilities are repaid, also known as market value, offer value, shareholders’ interests, and market capitalization.

Valuation 130
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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!

Investors 130
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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

In our latest blog installment, we define and outline the key elements involved in valuing a target company. Essentially, comparable company analysis looks at the value of publicly traded companies. The method assumes leveraging, whereby the cash flow of the company is used to pay-off the debt—ultimately building equity.

M&A 40
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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. 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.

Investors 100
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How Private Equity uses ‘Roll-up’ Strategies to Drive Investment Returns

OfficeHours

As one example, BrightView, now a publicly-traded company, developed as a roll-up of smaller landscaping businesses and has been owned at various times in the past by private equity firms including KKR, MDS, and Leonard Green, among others. To illustrate this point, let us consider the landscaping industry.

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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). No, I’m not Check Out All Our Blog Posts Why OfficeHours & Why Now? Yes, I’m interested! Take your finance skills to the next level with OfficeHours.