This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
percent, as China worked to export more to make up for weak demand, high debt and a steep property contraction at home. Gross domestic product expanded 5.2
capital markets’ resilience and ability to adapt, IPOs, debt markets and mergers and acquisitions (and related financings) have shown substantial increases over 2023. As a testament to the U.S. By: Skadden, Arps, Slate, Meagher & Flom LLP
During economic uncertainty, it is important to conduct thorough due diligence to identify potential risks and make informed investment decisions. Cash flow: examine the company’s cash flow statements to determine whether it has sufficient liquidity to weather economic downturns.
Beijing has often addressed economic troubles by boosting spending on infrastructure and real estate, but now heavy debt loads make that a hard playbook to follow.
Economic uncertainty can cast a shadow of doubt over potential deals in the realm of mergers and acquisitions (M&A). In this article, we’ll explore some creative financing strategies that can help facilitate M&A transactions even in uncertain economic times.
By Naomi Rovnick LONDON (Reuters) – The threat of soaring government debt supply destabilising financial markets has intensified, the world’s top central banking advisory body said on Tuesday, as it urged policymakers to act swiftly to prevent economic damage.
debt ceiling vote eyed By Johann M Cherian and Shashwat Chauhan (Reuters) – Britain’s commodity-heavy stock indexes slid on Wednesday as weak China economic data drove commodity prices lower, while sentiment remained fragile ahead of a crucial vote on the U.S. debt ceiling issue. The exporter-heavy FTSE […]
A financially troubled firm has stopped paying investors, risking panic and testing the Chinese government’s resolve to take on debts from its property crisis.
What is a Collateralized Debt Obligation? Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work? CDOs provide investors with a diversified portfolio of debt instruments across different risk levels. read more , etc.
What is generally less understood is the impact of the pandemic on the debt markets. Many PE-backed Insurance Brokers Secured Sizable Loans Immediately Prior to the Crisis Over the past several years, the demand for high yield debt issued by private equity (PE) backed insurance brokers has been extremely strong.
In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x. This capital is released once investors buy the debt off the banks’ balance sheets.
As 2023 concludes, economic indicators remain mixed on whether there will be a recession or a soft landing over the next year. Either way, it is likely that a significant number of companies, across industries, will need to restructure their financial debt and operations.
Ali Taraftar left Canada in 2007 to go to the United States and met a couple of investment bankers who put together a firm to do debt restructuring and mortgage modifications. Concept 3: Debt Restructuring Can Save Businesses The current economic climate has put many businesses in a precarious situation.
sits around 3.7%; while that is certainly better than the 8% and 9% seen earlier this year, it still remains a key point of concern for anyone monitoring the economic situation. Inflation is one of the several economic factors that impact private equity returns, as it can have a material impact on returns as it rises and falls.
Beijing wanted to cool its housing market, but created a bigger problem, as the fallout from debt-laden developers and sinking sales spreads to the broader economy.
sits around 3.7%; while that is certainly better than the 8% and 9% seen earlier this year, it still remains a key point of concern for anyone monitoring the economic situation. Inflation is one of the several economic factors that impact private equity returns, as it can have a material impact on returns as it rises and falls.
In today's unpredictable business environment, economic uncertainty is the only sure thing. This uneven economic landscape makes the accurate valuation of your company (or a business interest, an intangible asset, or even your debt) more difficult than usual—and more essential than ever.
The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.
Do they have the cash of debt/equity capacity to bid aggressively? These equity transactions between related parties are not negotiated purely on economic / financial terms. It is calculated as the Equity Value plus Net Debt plus Preferred Stock plus Minority Interest. For a private company, the opposite is often true.
Activists often describe themselves as bottom-up stock pickers whose investments will outperform irrespective of wider economic trends. Demands for cost-cutting and debt reduction are on the rise, as well as greater scrutiny of merger and acquisition (M&A) deals, especially in the U.K
No matter the economic climate, you can always bet on sports fans to show up for their favorite teams. Therefore, expect more debt deals for stadiums and arenas and more M&A deals , spin-offs, divestitures , minority stake purchases , and JV deals for teams and leagues. Can teams carry debt?
This more aggressive monetary policy shift reflects the central bank’s heightened concerns about economic stability and its commitment to stimulating growth. In turn, this typically stimulates investment and spending, helping to buoy economic growth during periods of uncertainty or slower expansion.
Wednesday, May 17, 2023 Given today’s economic uncertainty—and all the focus on rising interest rates, bank failures, and market conditions—business owners and financial executives may find that debt markets are top of mind.
Existing Debt : The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could be hanging over your head as a large liability. Other investments may be more protected from economic impacts and can help with diversification.
European stocks hit two-month low on weak China data, log monthly drop By Sruthi Shankar and Ankika Biswas (Reuters) – European shares hit a two-month low on Wednesday as concerns about a global slowdown on China’s weak economic data and uncertainty around the U.S.
It is important to consider that this gain is before even considering the fact that the roll-up should be able to increase the acquired company’s EBITDA for some of the reasons mentioned earlier including economics of scale, fixed cost leverage, and accelerating revenue growth.
Hard Landing Meaning Hard landing refers to a significant economic downturn or slowdown following a period of fast or rapid growth. Nations must prevent it to avoid a significant drop in economic growth. Moreover, it may lead to prolonged economic stagnation and even recession.
In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control. Debt Financing: Debt financing involves borrowing money to fund your acquisition.
Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.
MILAN (Reuters) – Italy’s high borrowing costs and weakening economic growth could reduce the profitability of its companies in the near future, especially those with a high debt load, the Bank of Italy said on Friday.
By Lefteris Papadimas ATHENS (Reuters) – The Greek government is forecasting economic growth of 2.3% Greece, which is still recovering from a debt crisis that nearly saw the country drop out […]
In the latest episode of The Flip Side, Head of Research, Jeff Meli, and Head of Macro Research, Ajay Rajadhyaksha, discuss whether factors such as the distribution of the recovery to date, the appetite for increasing national debt and the looming possibility of a vaccine warrant further fiscal stimulus to bolster economic recovery in the US.
Existing Debt The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could hang over their head as a large liability. Other investments may be more protected from economic impacts and can help with diversification. Yes, I’m interested!
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. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.
The European Stability Mechanism Board (ESM) operates as a financial backstop intergovernmental institution established in 2012 to combat the European sovereign debt crisis of 2009-2011 in euro member states. It has two types: PCCL for economically strong nations and Enhanced Conditions Credit Line (ECCL) for those not meeting PCCL criteria.
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. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.
We organize all of the trending information in your field so you don't have to. Join 38,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content