Francine Way

JUNE 22, 2020

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. Working Capital deficit. Any debt drawdown and paydown schedule. Cash balance on the books without Restricted Cash. Negative equity balance.

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OfficeHours

JUNE 5, 2023

DO NOT let yourself fall victim to such a ploy – instead, follow the tips outlined below to stand out in the interview process: Understanding the Purpose of an LBO As you have likely heard time and time again, knowing WHY you are using a valuation method is just as important as knowing HOW to use a valuation method.

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Private Equity Valuation Equities Debt 147

Successful Acquisitions

SEPTEMBER 11, 2023

The Verdict is In on the Sell Side: Business Valuation Basics By Brian Goodhart Valuation is a fundamental aspect of the complex and intricate world of mergers and acquisitions. Today, we will delve into the intricate art and science of valuation, exploring its various components and purposes.

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Valuation Business Discounted Cash Flow Mergers and Acquisitions 64

Wizenius

SEPTEMBER 28, 2024

Leverage Buyouts (LBO) are a strategic financial maneuver where a financial sponsor, typically a private equity firm, acquires a target company by utilizing a substantial amount of debt alongside a smaller portion of equity. In an LBO scenario, both debt and equity investors commit capital to the target company.

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Wall Street Mojo

JANUARY 15, 2024

What is a Collateralized Debt Obligation? It happens when capital borrowers like banks, big companies, and other financial institutions lose capital provider's trust like depositors, investors, and capital markets. Table of contents What is a Collateralized Debt Obligation? read more it may cause.

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Debt Bank Banking Investors 52

TechCrunch: M&A

JULY 27, 2023

Uplift had raised nearly $700 million in equity and debt, securing $123 million at a reported $195 million valuation in its Series C round alone. ” Laplanche is referring to the BNPL-style product that Upgrade launched in October 2021, which lets users pay down their debt over six to 36 months with a fixed interest rate.

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Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. For private equity (PE) groups, these rates determine the cost of capital, which is essential for their investment strategies.

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Private Equity Valuation Equities Business 52

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. However, company valuation isn’t as simple as slapping a price on your business. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences.

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Valuation Discounted Cash Flow S&P DCF Analysis 97

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. Debt financing is much more common, and the GE firm is often the first institutional investor.

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Private Equity Equities Capital Portfolio 105

RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Venture lending is usually offered in two forms: "growth capital" and equipment financing.

Debt 40

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Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations. But outside of those, its status is murkier.

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Valuation DCF Debt Financial Modeling 64

Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

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Mergers and Inquisitions

DECEMBER 4, 2024

Sports Investment Banking Definition: In sports IB, bankers advise on equity and debt issuances, mergers, acquisitions, and restructuring deals for sports teams and leagues, sports-adjacent technology and services firms, and facilities such as arenas, stadiums, and racetracks. What is Sports Investment Banking?

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How2Exit

NOVEMBER 25, 2024

Integrating talent and aligning interests across multiple acquisitions magnifies operational efficiencies, improving prospectives for valuation bumps. Creative financing options, such as seller financing and industrial revenue bonds, make acquisitions accessible even to those without large amounts of capital on hand.

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Business Mergers and Acquisitions Finance Finance 130

Devensoft

AUGUST 22, 2023

Navigating M&A valuations with precision is paramount for informed decision-making. Our guide equips you with step-by-step instructions on employing the Enterprise Value Calculator effectively, complete with insights into optimal practices for precision valuations. Let’s dive into the intricacies of this invaluable resource.

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M&A Valuation Utilities Mergers and Acquisitions 52

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.

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Wall Street Mojo

JANUARY 4, 2024

read more is that amount of interest, which is due for a debt or bond but not paid to the lender of the bond. Investors and financial professionals must be aware of accrued interest when engaging in transactions to avoid discrepancies in the valuation and pricing of securities. Table of contents What is an Accrued Interest Formula?

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Accountant Financial Modeling Financial Models Financial Statement 98

OfficeHours

OCTOBER 20, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates.

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The Deal

JANUARY 31, 2024

On the latest episode of The Deal’s Behind the Buyouts podcast, Macquarie Capital global head of financial sponsors Tom Amster details his expectations for private equity dealmaking in the coming months following a muted 2023. “Private equity as a business, they’re not stores of capital, they recycle capital,” he said.

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Private Equity Capital Valuation Equities 59

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. Transaction Criteria: Valuation: Is there a targeted floor and ceiling to transaction multiple used to value the target? Producing an ongoing deal flow.

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OfficeHours

OCTOBER 16, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates.

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InvestmentBank.com

MAY 26, 2021

A liquidity crisis slammed businesses across the board, and COVID-19 added a new layer of complexity for companies who tried to obtain capital to weather the storm. Debt Markets Prior to COVID-19, some analysts and debt underwriters encouraged debt issuers to exercise caution after the tenth straight year of economic expansion [1].

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OfficeHours

JULY 18, 2023

In a roll-up strategy, a private equity firm will attempt to consolidate a large number of smaller firms into a single, professionalized company with numerous benefits, including economies of scale and fixed cost leverage, valuation uplift (so-called “multiple arbitrage”), and acquisition expertise, among others.

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Private Equity Equities Investment Mergers and Acquisitions 130

Mergers and Inquisitions

OCTOBER 18, 2023

Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capital markets vs. investment banking. The questions usually go like this: Are capital markets teams (ECM, DCM, and LevFin) “real” investment banking? Do you learn anything?

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Investment Banking Capital Market Recruitment Capital 59

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. The stake will depend directly on the amount you want to raise compared to your business’s total valuation.

Equities 79

Equities Investment Private Equity Valuation 79

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

RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Probably the most exotic of the instruments is subordinated debt.

Capital Raising 40

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Mergers and Inquisitions

JANUARY 24, 2024

minutiae about issues like OID for debt issuances ) and did not accurately represent a 1- or 2-hour case study. Specifically, should we invest €60 million at a pre-money valuation of €1.2 billion and €50 million at a €800 million pre-money valuation if we’re targeting a 3.0x multiple of invested capital in this deal?

Equities 105

Equities Valuation Financial Statement Financial Modeling 105

How2Exit

SEPTEMBER 9, 2024

Tune in to explore the fascinating journey of Steve, his approach to valuations, and how he successfully navigated his first acquisition during the tumultuous COVID-19 period. Preparing for Sale: Business owners should invest time in preparing their businesses for sale to maximize valuation and attract potential buyers.

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M&A Mergers and Acquisitions Financial Analysis Financial Statement 130

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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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 How are convertible securities valued?

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Sun Acquisitions

FEBRUARY 28, 2024

Valuation and Due Diligence Accurate valuation is essential to avoid overpaying for the target company. Factors Influencing Financing Choices Available Capital Your existing financial resources play a crucial role in determining your financing choices. However, too much debt can strain your finances and hinder growth.

Finance 59

Finance Finance Acquisitions Business 59

Software Equity Group

MARCH 21, 2023

There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Growth debt, also called venture debt, most often comes as a principal loan accompanied by an interest payment.

Finance 52

Finance Finance Debt Equities 52

Mergers and Inquisitions

OCTOBER 16, 2024

But most coverage suggests generic answers about wanting to learn a lot, liking financial analysis or valuation, or wanting to “understand different industries.” private equity or venture capital ). These answers are bad not just because they’re generic but also because: They don’t reflect the context of the interview.

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Peak Frameworks

MAY 22, 2023

Liabilities represent the obligations a company has to outside parties, such as debts, loans, and accounts payable. Importance of Asset Valuation and Management Proper asset valuation and management are essential for businesses to maintain a healthy balance sheet and maximize their potential. For example, Apple Inc.

Accountant 52

Accountant Equities Debt Private Equity 52

Wall Street Mojo

JANUARY 15, 2024

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​ Financial Modeling & Valuation Course Bundle ​ ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).

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Accountant Financial Modeling Financial Models Valuation 98

The Deal

SEPTEMBER 20, 2023

company, which raised billions in debt and equity this year from Magnetar Capital LLC, Blackstone Tactical Opportunities Fund LP, Nvidia Corp. As for CoreWeave’s own financing, the company’s efforts in 2023 suggest it is a capital intensive business. CoreWeave Inc. The Roseland, N.J., Magnetar co-led a $2.3

Equities 59

Equities Debt Finance Finance 59