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. The cost of equity calculation is more complex.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

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. We then calculate Implied Equity Purchase Price as follow: Transaction (Enterprise) Value = Most current EBITDA * EBITDA Multiple.

Valuation 130

Valuation M&A Debt Book-building 130

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. Negative equity balance. Working Capital deficit.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

Deal Lawyers

SEPTEMBER 15, 2023

This Debevoise update may be a little different from our usual blog topics, but I worry that the EU’s Corporate Sustainability Reporting Directive (“CSRD”) — which requires companies to disclose significant sustainability information — is a “sleeper issue” that isn’t getting the attention it deserves.

Private Equity 124

Private Equity Equities Corporation IT 124

Francine Way

JULY 18, 2017

Because dividends is a piece of equity, we can use the Capital Asset Pricing Model (CAPM) to calculate the proper Rate of Return (r). To perform this forecast, we need the target’s dividend history again, the book value of equity and year-end shares outstanding, and the stock prices at year-end.

Valuation 130

Valuation M&A DCF Shares 130

Deal Lawyers

SEPTEMBER 27, 2023

Earlier this month, the CLS Blue Sky Blog ran a post from Paul Weiss discussing ways the DOJ and FTC’s proposed merger guidelines will impact private-equity-sponsored acquisitions.

Private Equity 124

Private Equity Equities Mergers Mergers and Acquisitions 124

Francine Way

MAY 14, 2017

In the last two blog posts, we walked through capital structure and how it impacts M&A activities and vice versa. To be explicitly clear, I am recommending the use of the following ranked capital sources when paying for an acquisition: cash (from the balance sheet), debt (at a reasonable level), and equity.

Debt 130

Debt M&A Trading Capital 130

OfficeHours

JUNE 6, 2023

Private equity is an investment asset class that has gained significant prominence and popularity in recent decades. However, private equity can seem complex and intimidating to beginners who are unfamiliar with its fundamentals. The Different Types of Private Equity Firms Private equity firms come in different sizes and strategies.

Private Equity 147

Private Equity Equities Debt Investment 147

Francine Way

JULY 9, 2017

Structure: Liquidity, new terms of equity arrangement, potential upside associated with any deferred component can make the transaction more complex. We have discussed the sell-side of an M&A transaction in the last two blog posts. It is to the seller’s best interest that the deal close quickly.

M&A 130

M&A Acquisitions Valuation Sale 130

The M&A Lawyer

OCTOBER 26, 2015

It wasn’t too long ago when private equity firms had the power – and ability – to do very little heavy lifting in order to enjoy a substantial growth on their return in a short period of time. Earning returns from investments is harder than ever before, forcing private equity firms to prove that they have something to offer companies.

Private Equity 130

Private Equity Equities Valuation Management 130

Deal Lawyers

DECEMBER 5, 2024

Earlier this year, I blogged about the NFL’s decision to open its franchises up to investment by a select group of private equity funds. According to this Institutional Investor article, those funds are chomping at the bit to get a piece of the NFL’s action, and it says that they like the NFL for the […]

Private Equity 113

Private Equity Equities Funds Investors 113

OfficeHours

JUNE 2, 2023

When you first decide to enter the world of private equity, you will undoubtedly be more overwhelmed than you were when you entered investment banking recruiting. Below, I will outline some of the best private equity firms to work for in 2023. And with the firm recently closing a new $3.25

Private Equity 147

Private Equity Equities Middle Market Funds 147

OfficeHours

JUNE 5, 2023

Private equity consulting firms play a crucial role in the success of portfolio companies by providing specialized expertise and strategic guidance. Private equity consulting firms go beyond traditional advisory services by providing value-added services to their clients.

Private Equity 147

Private Equity Consulting Portfolio Equities 147

Deal Lawyers

DECEMBER 1, 2023

Cooley recently blogged about some of the challenges associated with navigating M&A executive comp issues in a volatile market. The first topic covered by the blog was how to deal with outstanding target equity awards.

M&A 100

M&A Equities 100

OfficeHours

JUNE 5, 2023

Private equity firms play a vital role in the broader investment landscape, and their success relies heavily on their ability to execute deals effectively. Simply put, any private equity associate course must focus on developing and refining these skills. We understand that, as a junior in the finance industry, time is of the essence.

Private Equity 147

Private Equity Equities Financial Modeling Financial Models 147

Francine Way

JULY 8, 2017

Many of these causes have their equivalences to the reasons behind the sale of a company (also known as a divestiture): Liquidity: As the equity holding period matured, investors (private equity funds behind companies) will look to sell. the house failed to increase in expected value), mature market (i.e. divorce, etc.).

M&A 130

M&A Acquisitions Sale Investment 130

Francine Way

JULY 20, 2017

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. The 1st one for today is the Tangible Book Value (TBV) method.

Valuation 130

Valuation M&A Business IT 130

Francine Way

JULY 19, 2017

For the purpose of our post, the output variables should be the per-share equity value returned from our DCF, Comparable Company, etc. Other common outputs are equity value and enterprise value. Identifying the output variables and naming them properly help the simulator decide where the analysis should be done. valuation exercises.

Valuation 130

Valuation M&A DCF Stock 130

OfficeHours

JUNE 12, 2023

Working in private equity is highly attractive for many reasons, and many finance professionals who are not already in the field often look for ways to break in. One of the primary ways to do so is by landing an internship at a private equity firm you might want to work at.

Private Equity 147

Private Equity Equities Investment Valuation 147

OfficeHours

MAY 21, 2023

Private equity associates are the workhorses of any investment team. They are typically closest to the financial modeling, analytical work, and diligence that private equity firms perform. Embark on an exciting journey in the world of private equity—a fast-paced and fulfilling career path.

Private Equity 130

Private Equity Equities Portfolio Financial Modeling 130

OfficeHours

AUGUST 9, 2023

To know if the buyside is right for you, let’s start with a textbook understanding of “What is private equity?” Private equity involves investing capital directly into private businesses that are not publicly traded on stock exchanges (that would be a hedge fund). Strategic thinking skills are essential.

Private Equity 130

Private Equity Equities Investment Banking Investment 130

Francine Way

MAY 16, 2017

Thus, a debt provider is more interested in the downside risks associated with a transaction (as opposed to the upside potential that an equity holder would be interested in). However, equity holders should assess if the situation is permanent or transitory; that is if they want their money back.

Debt 130

Debt M&A Equities Capital 130

OfficeHours

JUNE 6, 2023

Private equity firms play a significant role in the global financial industry, and their presence is particularly pronounced in New York City. Job Creation and Economic Growth: Private equity firms in New York City contribute to job creation and economic growth through their investment activities.

Private Equity 147

Private Equity Economics Equities Capital 147

OfficeHours

JUNE 2, 2023

Alongside hedge funds and venture capital firms, private equity is often the most coveted role within the finance sector, and for good reason – it is a highly compensated, competitive, and luckily, a non-client-facing role that is the end goal for many aspiring finance professionals. investment banking, private equity , VC, etc.)

Private Equity 162

Private Equity Equities Investment Banking Financial Services 162

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 130

Valuation M&A DCF Financial Statement 130

OfficeHours

JUNE 13, 2023

Written by an OfficeHours Top Buyside Coach The presence of private equity firms in New York City contributes to its status as a global financial center by attracting talent, fostering innovation, and driving economic prosperity.

Private Equity 130

Private Equity Economics Equities Middle Market 130

OfficeHours

JUNE 6, 2023

The private equity industry has experienced significant growth in recent years, leading to a highly competitive job market for aspiring professionals, particularly at the associate level. Below, I will provide a comprehensive guide on how to stand out in the competitive private equity associate job market.

Private Equity 147

Private Equity Equities Financial Modeling Financial Models 147

Deal Lawyers

AUGUST 5, 2024

In the current deal environment, private equity sponsors are increasingly looking for alternative ways of generating liquidity for their investments. This recent Foley blog addresses the […]

Private Equity 100

Private Equity Equities Portfolio Investment 100

Francine Way

MAY 17, 2017

For those of us who have borrowed money based on collateral, this blog post will feel familiar. In the next post, we will discuss equity-financing, specifically how to gauge if it is good or bad for the acquirer. The concept can be extended to M&A.

Debt 130

Debt M&A Finance Finance 130

Deal Lawyers

SEPTEMBER 13, 2023

We’ve previously blogged about the content of the new rules and criticisms by two SEC Commissioners. This Proskauer blog discusses the basis for the legal challenge and its potential impact: […]

Private Equity 124

Private Equity Funds Equities Trading 124

Francine Way

MAY 15, 2017

As an agent for the company, management should be aware that shareholders (equity holders) would want to leverage their equity to maximize returns while managing the amount of distress that excess debt will create. Liquidation value Equity value With all of these determinants, the larger the value or size, the better.

Debt 130

Debt M&A Acquisitions Management 130

Deal Lawyers

AUGUST 21, 2023

I recently blogged about PE sponsors putting more equity in their deals in response to the challenging deal financing environment.

Private Equity 100

Private Equity Equities Investors Finance 100

OfficeHours

JULY 18, 2023

In the pursuit of attractive equity returns, private equity firms have developed numerous innovative strategies beyond typical leveraged buyouts and take-private transactions. As it happens, this is an industry that has experienced a significant amount of private equity-backed roll-up activity.

Private Equity 130

Private Equity Equities Investment Mergers and Acquisitions 130

OfficeHours

OCTOBER 16, 2023

Learn more from our leading Private Equity Course! Is Private Equity Right for You? To know if the buyside is right for you, let’s start with a textbook understanding of “What is private equity?” Private equity involves Do you think PE is for you? Take advantage of our October Promotion! Just do it.

Private Equity 130

Private Equity Equities Recruitment Investment Banking Analyst 130

JD Supra: Mergers

NOVEMBER 30, 2023

As reported in a prior blog post, the Federal Trade Commission (“FTC”) filed suit in federal district court in September alleging that U.S. Anesthesia Partners, Inc.

Private Equity 192

Private Equity Profitability Equities Trading 192

Deal Lawyers

AUGUST 7, 2024

Last week, I blogged about how PE sponsors have been accumulating quite a bit of dry powder since the beginning of 2024, but that it’s been the big players that have reaped the largest windfall. Now, it looks like these large sponsors are turning to the middle market, which has long been the domain of […]

Middle Market 113

Middle Market Private Equity Equities IT 113

OfficeHours

MAY 24, 2023

You’ve got your dream private equity! But that is just the first step of the private equity journey. Private equity firms are typically very hierarchical, with multiple levels of professionals needing to move up to make it to the title of MD or Partner. Congratulations! Now, it is time to hunker down and build your career.

Private Equity 130

Private Equity Equities Funds IT 130