Peak Frameworks

MAY 22, 2023

The accounting equation is a fundamental concept in finance that every private equity professional, investment banker, and corporate , finance expert should be familiar with. This equation plays a critical role in financial reporting, decision-making, and understanding the financial health of a business. For example, Apple Inc.

Accountant 52

Accountant Equities Debt Private Equity 52

Sun Acquisitions

SEPTEMBER 9, 2022

If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. In this post, we’re going to address what these are, some of the challenges to expect, how to sell the equity, and who to sell it to. Who to sell your business equity to.

Equities 52

Equities Business Broker Investors 52

Francine Way

JULY 11, 2017

To perform this analysis, the following are needed: Target’s financial statements (income statement, balance sheet, cash flow): Preferably audited historical statements, cleaned up and re-formatted in Excel properly (we will see an example of this in the next post). We will delve into this topic deeper in the next post.

Valuation 130

Valuation M&A DCF Financial Statement 130

Mergers and Inquisitions

FEBRUARY 28, 2024

While everyone seems to know about equity research and trading stocks, fixed income research gets far less attention. Equity Research vs. Fixed Income Research Common Myths What Do You Do as a Fixed Income Research Analyst or Associate? Each role has common analytical elements, but the specifics and deliverables differ (e.g.,

Equities 59

Equities Asset Management Debt Recruitment 59

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. Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.

Accountant 98

Accountant Financial Modeling Financial Models Financial Statement 98

Wall Street Mojo

JANUARY 18, 2024

When the auditors check the authenticity of the books, they go through all levels of financial records to endure they are error free and present a true and fair view of the business. Adjusted trial balance is the base of financial statement preparation, which should be done with skill and proper knowledge regarding accounting procedures.

Accountant 98

Accountant Book-building Financial Statement Financial Modeling 98

Mergers and Inquisitions

MAY 29, 2024

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.

Corporate Finance 59

Corporate Finance Financial Modeling Financial Models Finance 59

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. This adjustment in behavior makes them a stable financial instrument for most people looking for a safe place to invest in.

Securities 98

Securities Investors Shares Stock 98

Razorpay

JULY 25, 2023

Corporate accounting refers to the process of recording a company’s financial transactions. The end result of this process are financial statements like the cash flow statement , the income statement and the balance sheet. Separate accounts are created to manage income, assets, liabilities, equity, etc.

Accountant 98

Accountant Corporation Financial Statement Business 98

How2Exit

APRIL 4, 2023

He explains that when the Small Business Administration (SBA) looks at a business for a loan, they want to make sure that the business can cover its debt service. They do this by giving it a coverage ratio of one dollar and thirty-five cents for every dollar of debt service after certain expenses.

Business 130

Business Management Negotiation Sale 130

Devensoft

JUNE 1, 2023

Here are ten areas that should be given extra attention during due diligence: Financial statements : closely review financial statements to assess the company’s financial health and identify any potential red flags. Investors must closely review financial statements to identify any potential red flags.

Economics 98

Economics M&A Management Financial Statement 98

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

Wall Street Mojo

JANUARY 17, 2024

In contrast, the financing activities involve all transactions that affect the equity and liabilities of a company. read more and balance sheet Balance Sheet A balance sheet is one of the financial statements of a company that presents the shareholders' equity, liabilities, and assets of the company at a specific point in time.

Accountant 98

Accountant Finance Finance Profitability 98

Mergers and Inquisitions

MAY 3, 2023

And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation). And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Sun Acquisitions

MARCH 6, 2024

However, securing favorable terms in a business acquisition requires more than just financial acumen; it demands the art of persuasion. Negotiating interest rates, equity stakes, and purchase prices is a delicate process that involves convincing the other party that your terms are reasonable and beneficial.

Business 59

Business Securities Acquisitions Negotiation 59

Cooley M&A

JULY 28, 2022

In the US, it is common to adjust the purchase price for cash, any excess or deficit of net working capital relative to a required level of net working capital, unpaid debt, and unpaid transaction expenses of the target business as of the closing, with an adjustment done at closing based on estimates and followed by a post-closing true-up.

M&A 59

M&A Debt Accountant Business 59

IBG

SEPTEMBER 11, 2024

It should come as no surprise, then, that a major focus of most buyers is on the company’s income statement and related financial information. That is especially true when the buyer is a private equity group or other type of “financial” buyer, which is the case in seven out of 10 deals that we have closed over the last several years.

Sale 52

Sale Business Financial Statement 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. One of the key advantages of this tactic is that it can help companies reduce their debt burden and improve their cash flow.

M&A 52

M&A Debt Capital Mergers and Acquisitions 52

Peak Frameworks

MAY 2, 2024

If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course , which help thousands of candidates land top jobs every year. Bad Debt Management: Estimating the likelihood of non-payment and accounting for bad debts is crucial for providing a realistic view of financial health.

Sale 52

Sale Accountant Financial Statement Business 52

Mergers and Inquisitions

JULY 19, 2023

If you’re interested in long-only hedge funds, you should ask a different set of questions: Do these long-only funds offer any advantages over strategies like long/short equity ? Theoretically, an equity fund could be long-only and manage its risk by buying stocks that are negatively correlated with the market.

Funds 52

Funds Asset Management Management Equities 52

Francine Way

JUNE 22, 2020

Specifically, they should be interested in what each party brings to the transaction, each party’s equity share in NewCo, and the issues / risks associated with the transaction. Negative equity balance. Any debt drawdown and paydown schedule. Shareholder equity: positive or negative. Working Capital deficit.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

Cooley M&A

OCTOBER 8, 2024

Third, and finally, the party seeking specific performance must prove that a balancing of the equities favors an order of specific performance. While the first two factors are relatively straightforward (although fact-dependent), the third factor – balancing of the equities – is less clear-cut. KCake Acquisition Inc. , Hill-Rom Inc. ,

M&A 52

M&A Mergers and Acquisitions Debt Finance 52

Focus Investment Banking

DECEMBER 5, 2024

It is important to note that buyers, whether financial or strategic, will run a thorough financial diligence to ensure the accuracy of the financial statements. Most of the transactions that we see in the tire and service space are asset sales on a cash-free debt-free basis.

Business 52

Business Sale Negotiation Accountant 52

RKJ Partners

AUGUST 6, 2017

During preliminary due diligence, the view of valuation is often heavily contingent on the financial information provided by the seller. Sellers are often hesitant to provide in-depth, detailed financial statements without first feeling comfortable that the buyer can successfully close a transaction.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

How2Exit

AUGUST 28, 2023

rn One area where due diligence is crucial is in the financial aspect of a business. Financial due diligence involves verifying the accuracy and reliability of a company's financial statements and other financial data. rn Ronald shares what he's seeing as the behavior of private equity firms in the current market.

Mergers and Acquisitions 130

Mergers and Acquisitions M&A Business Acquisitions 130

Software Equity Group

JULY 1, 2024

For example, a QoE might uncover irregularities in financial statements or aggressive accounting practices that need to be addressed. Quality of balance sheet: An analysis of the value of assets (which can include physical property, goodwill, and other intangibles) and liabilities such as current debt and contingent liabilities.

M&A 52

M&A Accountant Financial Statement Business 52

Wall Street Mojo

JANUARY 17, 2024

The Credit default swap helps to transfer the credit risk Credit Risk Credit risk is the probability of a loss owing to the borrower's failure to repay the loan or meet debt obligations. You may refer to the following articles to learn more about finance – Atomic Swaps Share Swap Equity Swaps Swap Rate First loss Credit default swap.

Financial Modeling 52

Financial Modeling Financial Models Insurance Valuation 52

Cooley M&A

MARCH 1, 2019

Even for a thriving business with a viable equity story, committed stakeholders and the right advisers, the final deal terms and valuation are typically guided by factors beyond a company’s control. Stock market forces also make the timing of an eventual outright exit and the final blended valuation of equity sales over time uncertain.

IPO 52

IPO Valuation M&A Business 52

M&A Leadership Council

AUGUST 7, 2024

For public companies, this information is usually derived from public documents—including press reports, filings with securities regulators, and any debt or equity offering memorandums the company or its bankers might have prepared for potential buyers. Each of these parts can benefit from specialized attention.

IT 52

IT Mergers and Acquisitions M&A Acquisitions 52

Peak Frameworks

SEPTEMBER 19, 2023

For instance, during the European Debt Crisis , it was crucial for policymakers to approach solutions rationally, analyzing data and projections rather than succumbing to panic. Morality: Ensuring that financial decisions align with ethical standards. Rationality: Making decisions based on reason and not emotion.

Business 52

Business Finance Finance Investment Banking 52

M&A Leadership Council

JUNE 14, 2023

For public companies, this information is usually derived from public documents—including press reports, filings with securities regulators, and any debt or equity offering memorandums the company or its bankers might have prepared for potential buyers. Each of these parts can benefit from specialized attention.

IT 52

IT Mergers and Acquisitions M&A Acquisitions 52

Wall Street Mojo

JANUARY 17, 2024

read more 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 ).

Financial Institution 91

Financial Institution Bank Banking Financial Modeling 91

Devensoft

AUGUST 22, 2023

The Enterprise Value Calculator: An Overview The Enterprise Value Calculator is a sophisticated tool designed to assess the true value of a company by considering its financial performance, market position, and growth potential. This includes financial statements such as the income statement, balance sheet, and cash flow statement.

M&A 52

M&A Valuation Utilities Mergers and Acquisitions 52

Lake Country Advisors

DECEMBER 5, 2024

Financial Statements Start with a thorough review of financial documents. These records provide a snapshot of your company’s profitability, financial stability, and cash flow: Income Statements : Analyze profitability by reviewing revenues, expenses, and net income over the past three to five years.

Business 52

Business Valuation Negotiation Profitability 52

IBG

JANUARY 31, 2023

In recent years, the financial focus of buyers has risen to new heights by the growing use of a “quality of earnings” (QofE) review, which we referenced above. Such reports are increasingly common in larger transactions, especially where the buyer is a private equity firm. “A

Sale 52

Sale Business M&A Mergers and Acquisitions 52

The TRADE

APRIL 30, 2024

The Basel Committee on Banking Supervision introduced Basel III in November 2010; a set of international banking regulations with the aim of improving banking sector stability and strengthening regulation in order to allow both to withstand financial shocks.

Financial Institution 69

Financial Institution Financial Market Risk Management Bank 69

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. She highlights the benefits of this strategy, such as providing liquidity, improving financial flexibility, and reducing risk for businesses involved in M&A activities.

Sale 130

Sale Mergers and Acquisitions Business M&A 130