OfficeHours

JUNE 5, 2023

Optimal Capital Structure Designing an optimal capital structure is critical to the success of a paper LBO. Balancing debt and equity components are crucial to minimizing the cost of capital while maintaining financial flexibility. Remember, this is private equity, NOT angel investing.

Private Equity 147

Private Equity Valuation Equities Debt 147

How2Exit

NOVEMBER 25, 2024

Creative financing options, such as seller financing and industrial revenue bonds, make acquisitions accessible even to those without large amounts of capital on hand. Many acquisitions are funded through a blend of debt financing, seller financing, and equity rollovers.

Business 130

Business Mergers and Acquisitions Finance Finance 130

Wizenius

APRIL 1, 2023

When companies need to raise capital, they have two primary options: Debt involves borrowing money, while equity involves issuing shares of ownership in the company. Let's take a look at examples of companies that raised capital through debt, and analyze the factors that influenced their decision.

Debt 52

Debt Equities S&P Shares 52

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Wall Street Mojo

JANUARY 17, 2024

What Is Profit And Loss Statement? A profit and loss (P&L) statement, sometimes called as an income statement, is a financial report that provides investors and outsiders with a financial overview of a company. Table of contents What Is Profit And Loss Statement? Profit and Loss Statement Explained Sample How To Prepare?

Profitability 52

Profitability S&P Financial Statement Accountant 52

Mergers and Inquisitions

MARCH 13, 2024

Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity. Most companies are already profitable, the potential returns are lower, and there’s usually a large secondary component (i.e.,

Private Equity 105

Private Equity Equities Capital Portfolio 105

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

How2Exit

MARCH 11, 2024

Anthony is the founder of Global Investment Capital Group and has successfully raised capital for his debt fund, which focuses on acquiring and operating group homes and assisted living facilities. One approach is to raise capital through a private equity fund. rn Another funding option is to establish a debt fund.

Mergers and Acquisitions 130

Mergers and Acquisitions Funds Investors Debt 130

Wizenius

APRIL 9, 2023

FCFF represents the cash flow that is available to all of the providers of capital to the firm, including equity holders and debt holders. To arrive at FCFF, we need to deduct two types of cash outflows: capital expenditures (CAPEX) and changes in net working capital (NWC).

Capital 52

Capital Accountant Funds Debt 52

Lake Country Advisors

OCTOBER 31, 2024

Buying into a business as a partner offers ownership and profit potential but also comes with risks. It grants you partial ownership, decision-making power, and a share of profits, but it also comes with substantial responsibilities. Evaluating a business thoroughly before making this decision is critical.

Business 52

Business Profitability Debt Shares 52

How2Exit

MARCH 18, 2023

She was able to make two successful acquisitions, adding 25% of revenue to her business and increasing her profits. To bridge this gap, Jeanette created the POCS formula, which stands for profit , owner dependency , cash , size and structure. This formula stands for Profits, Opportunities, Capabilities, and Structure.

M&A 130

M&A Profitability Business Book-building 130

Focus Investment Banking

JUNE 5, 2023

Mergers and acquisitions (M&A) can be a great way for businesses to expand their operations, enter new markets, and increase profitability. One of the most critical metrics to evaluate the financial health of a target business is its working capital, which measures the company’s operational liquidity. What Is Working Capital?

M&A 52

M&A Capital Management Mergers and Acquisitions 52

Mergers and Inquisitions

OCTOBER 30, 2024

Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. What Are Corporate Finance Jobs? not banks or investment firms).

Corporate Finance 105

Corporate Finance Finance Finance Corporation 105

Growth Business

JUNE 29, 2023

The objectives you set for the business will dictate the type of finance you should raise: the two key options being equity (selling shares in your company) and debt (borrowing from a bank or financial institution). A mismatch here will decrease the chances of successfully raising capital.

Finance 110

Finance Finance Equities Business 110

Francine Way

JULY 7, 2017

Thus far in the last 10 blog posts, we have discussed what M&A is, its success metrics, types of acquirers and value creations, capital structure, debt, and equity. Profitability: What is the targeted return on invested capital (ROIC), return on assets (ROA), or return on equity (ROE) - along with the payback period.

M&A 130

M&A Acquisitions Consulting Capital 130

Wall Street Mojo

JANUARY 15, 2024

It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company. Liabilities come next, divided into current liabilities (like debts and payables) and long-term liabilities (e.g., read more all the income and expenditures of the business.

Accountant 98

Accountant Financial Statement Debt Financial Modeling 98

Growth Business

OCTOBER 25, 2024

This decision is critical and often complex, requiring a delicate balance between securing the necessary capital while retaining future financial benefits and operational control. In my experience, with eight years as a mid-market M&A advisor, SMEs traditionally trade for between four and seven times their profitability.

Equities 98

Equities Investment Private Equity Valuation 98

Sun Acquisitions

APRIL 26, 2024

Debt Financing: The Double-Edged Sword Debt financing is a standard route for companies pursuing M&A, offering the allure of leveraging existing assets to fund the transaction. While it provides a quick infusion of capital, the risks can be substantial.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

Focus Investment Banking

MARCH 10, 2025

Shifting focus to profitable, reliable customers strengthens cash flowwhat buyers ultimately value. Why It Matters: Healthy working capital keeps the business running smoothly day-to-day. Why It Matters: Healthy working capital keeps the business running smoothly day-to-day. You can read more here: [link] 6.

Investment 52

Investment Book-building Sale Business 52

Wall Street Mojo

JANUARY 17, 2024

This differentiation helps identify a company’s profitability Profitability Profitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin.

Accountant 98

Accountant Finance Finance Profitability 98

Growth Business

JULY 17, 2024

Venture capitalists Venture capital is finance provided for an equity stake in a potentially high growth company, and is behind some of the best know and most innovative businesses in the UK such as Pizza Express, Centre Parcs, Odeon, UCI cinemas and Spotify. More on venture capital backing How do you know it’s time to raise venture capital?

Funds 97

Funds Business Finance Finance 97

How2Exit

MAY 20, 2024

He elucidates on the market dynamics, contrasting the more natural debt-equity structures of large companies with the often artificially stimulated small business sector. rn Key Takeaways: rn rn rn Typical leverage for large public companies is between 50-60% debt; anything higher is considered risky.

Business 130

Business Book-building Equities Acquisitions 130

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. However, company valuation isn’t as simple as slapping a price on your business.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Growth Business

NOVEMBER 23, 2023

Two-thirds of the UK’s fintech start-ups are in in the city, and in 2020, the capital attracted 94 per cent of the country’s total fintech venture capital. Beringea Beringea is a transatlantic venture capital firm with more than $800m under management across its funds in the UK and the US.

Investment 111

Investment Funds Capital Business 111

How2Exit

MAY 22, 2023

He was able to find a business that was not only profitable but also had the potential to be innovative. During this time, Walker took the time to learn everything he could about the private capital market. By taking the time to research and understand the private capital market, Walker was able to create a successful business.

Business 130

Business Book-building Acquisitions Investment 130

Wizenius

MARCH 30, 2023

The assets can include non-performing loans, bad debts, and other distressed assets. This can include restructuring the debt, liquidating assets, or selling them to other investors. Profit sharing : Once the assets are resolved, the ARC shares the profits with its investors.

Business 52

Business Financial Institution Debt Investors 52

Wall Street Mojo

JANUARY 16, 2024

First, they pay taxes on the corporate profit Corporate Profit Corporate profit, or ‘profit after tax, is the net income received from the business after deducting direct expenses, indirect expenses and all the applicable taxes from the total revenue generated by the company during the year. They do not pay SECA Tax.

Corporation 98

Corporation Profitability Financial Modeling Financial Models 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.” But that made his net profit look bad. The most egregious recent case has got to be WeWork Companies Inc.

Debt 52

Debt Profitability Investment Retail 52

Sun Acquisitions

FEBRUARY 14, 2024

Consider options such as raising capital through equity financing or securing a bank loan to fund your expansion plans. These strategies can provide the capital required to acquire companies that complement your strengths. Debt Financing: Debt financing involves borrowing money to fund your acquisition.

Acquisitions 59

Acquisitions Business Debt Finance 59

The Deal

JUNE 23, 2023

The recent purchase of Riverbed Technology LLC reflects a burgeoning niche for middle-market technology turnaround investor Vector Capital Management LP: buying companies from lenders who converted debt to equity through reorganizations. ” Apollo is providing some of Riverbed’s debt. billion in 2015.

Debt 52

Debt Middle Market Capital Profitability 52

Devensoft

JUNE 15, 2023

Essentially, strategic recapitalization involves changing a company’s capital structure to achieve specific financial goals, such as reducing debt or improving cash flow. By refinancing existing debt or issuing new debt securities, companies can obtain lower interest rates and reduce their overall cost of capital.

M&A 52

M&A Debt Capital Mergers and Acquisitions 52

OfficeHours

MAY 16, 2023

Hedge funds are significant players in financial markets given the size of their capital bases and the frequency of their trading. Liquidity is essential for businesses and governments to access capital. When markets are liquid, they can issue securities to raise capital quickly and efficiently. trillion in assets globally.

Financial Market 130

Financial Market Funds Risk Management Trading 130

Wall Street Mojo

JANUARY 17, 2024

It is used in the context of capital budgeting and its primary purpose is to screen potential projects and select them based on their profitability. Examples Frequently Asked Questions (FAQs) Recommended Articles Key Takeaways The cut off rate is a key concept in capital budgeting and financial management.

Capital 52

Capital Investment Debt Portfolio 52

How2Exit

AUGUST 8, 2023

The funds generated from the sale can be used to finance the M&A transaction, invest in growth opportunities, or pay down debt. Firstly, they provide immediate access to capital. This infusion of capital allows the business to have higher and better use for its funds than being tied up in property.

Sale 130

Sale Mergers and Acquisitions Business M&A 130

Peak Frameworks

MAY 22, 2023

Liabilities represent the obligations a company has to outside parties, such as debts, loans, and accounts payable. These ratios are essential for assessing a company's performance, profitability, and financial health. Examples include accounts payable, short-term debt, and accrued expenses. For example, Apple Inc.

Accountant 52

Accountant Equities Debt Private Equity 52

Growth Business

JULY 11, 2023

1) Venture Capital Getting backing from a VC firm is extremely difficult. For Woodland, it’s important to pitch for additional capital at the right time in the company’s development and to be realistic about the amount you’re asking for. For more information, contact the British Venture Capital Association at www.bvca.co.uk

Finance 75

Finance Finance Business Funds 75

Wall Street Mojo

JANUARY 17, 2024

Convertible securities combine features of both debt and equity instruments. For issuers, they offer a cost-effective method to raise capital, often with lower interest rates than traditional debt. read more have features of equity as well as debt. #2 read more but also the control of the company.

Securities 98

Securities Shares Investors Financial Modeling 98