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

Mergers and Inquisitions

JANUARY 24, 2024

Let’s start with the elephant in the room: yes, we’ve covered the growth equity case study before, but I’m doing it again because I don’t think the previous examples were great. minutiae about issues like OID for debt issuances ) and did not accurately represent a 1- or 2-hour case study. They over-complicated the financial model (e.g.,

Equities 105

Equities Valuation Financial Statement Financial Modeling 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. Therefore, ideal private equity target companies have steady cash flows and minimize variable or unexpected costs. This can reduce returns significantly.

Investors 130

Investors Private Equity Debt Equities 130

How2Exit

NOVEMBER 25, 2024

This episode is a goldmine for anyone interested in understanding the intricate strategies that private equity employs to rapidly grow companies through acquisitions. Key Takeaways: Roll-ups serve as a potent strategy for rapid company growth, often offering a de-risked investment decision that private equity firms leverage.

Business 130

Business Mergers and Acquisitions Finance Finance 130

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.

Debt 52

Debt Funds Private Equity IPO 52

OfficeHours

JUNE 5, 2023

The paper LBO is one of the most commonly used and intimidating interview techniques for private equity. Many candidates dread the paper LBO, but simply put, it is one of the most definitive “weeder” techniques used by many private equity firms and investment banking to lower the applicant pool.

Private Equity 147

Private Equity Valuation Equities Debt 147

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. Derive Free Cash Flow to Firm (FCFF).

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Mergers and Inquisitions

JULY 31, 2024

If you ever tire of the hype around tech, industrials private equity might be an ideal hiding spot. Morgan’s acquisition of Carnegie Steel in 1901 – was an industrials private equity deal. Table Of Contents Industrials Private Equity Defined What Has Drawn Private Equity Firms to Industrials Companies?

Private Equity 66

Private Equity Equities Middle Market Debt 66

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

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. If you're interested in recruiting for private equity and mastering concepts like the accounting equation, you should check out our Private Equity Course.

Accountant 52

Accountant Equities Debt Private Equity 52

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

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. Selling equity – the good, the bad, the ugly.

Equities 52

Equities Business Broker Investors 52

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

OfficeHours

JULY 4, 2023

Going to keep today rather simple — we want to celebrate and kick off the second half of the year with a simple offer for the first 10 people that take advantage of the below — PE Platform Access for $225 OFF = $74 out of pocket for lifetime access Our flagship program has placed mentees into most major private equity firms since launching in 2020.

Sale 130

Sale Private Equity Recruitment Equities 130

Growth Business

MARCH 1, 2024

By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising private equity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.

Private Equity 59

Private Equity Equities Investment Business 59

The Deal

FEBRUARY 2, 2024

The company has accumulated some debt to run business operations but has its sights set on reducing leverage over the next couple of years. What we’re looking for in a private equity firm is to bring their management, executive team and board to help support and run the day-to-day operations.

Capital 111

Capital Private Equity Entertainment Business 111

Software Equity Group

JUNE 27, 2023

This concept is called rollover equity and is common for private equity transactions. What is Rollover Equity? The offer of ongoing ownership is known as “rollover equity” because the seller chooses to roll a portion of the sale proceeds back into the company’s new ownership structure. How Does Rollover Equity Work?

Equities 52

Equities IT Private Equity M&A 52

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.

Private Equity 52

Private Equity Valuation Equities Business 52

Mergers and Inquisitions

NOVEMBER 1, 2023

When you hear the words “healthcare private equity,” two thoughts probably come to mind: Wait a minute, isn’t healthcare a risky/growth-oriented sector? Before delving into these nuances, we should take a step back and define the sector: Definitions: What is a Healthcare Private Equity Firm? Why do PE firms operate there?

Private Equity 59

Private Equity Healthcare Equities Middle Market 59

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. High debt levels can burden the newly formed entity with interest payments, impacting its financial flexibility.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

Wall Street Mojo

JANUARY 15, 2024

wallstreetmojo.com) Balance Sheet The 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. How to Read Balance Sheet Equity? Article Link to be Hyperlinked For eg: Source: How to Read a Balance Sheet?

Accountant 98

Accountant Financial Statement Debt Financial Modeling 98

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

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. The key questions that corporate finance teams answer also vary.

Corporate Finance 105

Corporate Finance Finance Finance Corporation 105

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

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

Sun Acquisitions

FEBRUARY 14, 2024

Consider options such as raising capital through equity financing or securing a bank loan to fund your expansion plans. Financial strategies involve leveraging existing assets as loan collateral or tapping into private equity partnerships to support this goal. These strategies can provide the financial firepower needed to fuel growth.

Acquisitions 59

Acquisitions Business Debt Finance 59

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

OfficeHours

MAY 16, 2023

There have been various estimates of the percentage of equity volume that is controlled by hedge funds. One widely cited estimate is that hedge funds account for around 5-6% of total equity trading volume in the US. investment banking, private equity , VC, etc.) According to a report by Hedge Fund Research, Inc.,

Financial Market 130

Financial Market Funds Risk Management Trading 130

Sica Fletcher

JULY 11, 2024

Insurance Brokerage M&A Multiples, 2024 The following sections offer additional context for the data in the table above by outlining the current insurance brokerage M&A market and providing insights from our team to make selling your brokerage smoother and more profitable once you get started.

M&A 52

M&A Insurance Debt Equities 52

How2Exit

MARCH 24, 2023

He realized that if he could buy enough companies, he could exit several of them a year and receive a large amount of profit in one go. They can help them with things such as accounting, profit and loss statements, and other financial documents. Equity in exchange for value is a great way for both consultants and businesses to benefit.

M&A 130

M&A Business Mergers and Acquisitions Investors 130

How2Exit

MAY 23, 2023

Castle Placement specializes in raising private equity and debt capital for clients. For example, a business can use a private placement memorandum (PPM) to raise capital from accredited investors, while also using equity crowdfunding or Reg CF to raise capital from non-accredited investors.

Capital 130

Capital Investors Business Investment 130

The TRADE

DECEMBER 18, 2023

This uncertainty will lead to heightened equity volatility in 2024. When volatility rises, convertible bonds tend to outperform equities. Convertible bonds will also provide cheaper financing options to those companies with other types of debt coming due which will lead to greater primary issuance.

Trading 64

Trading Banking Bank Investors 64

Mergers and Inquisitions

MAY 3, 2023

In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time. 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).

Valuation 64

Valuation DCF Debt Financial Modeling 64

Software Equity Group

AUGUST 24, 2023

Recapitalization is a process of restructuring a company’s debt and equity mix, also known as its capital structure. It is important that founders understand the costs and benefits of equity recap and find a partner aligned with their vision for the company. In this scenario, equity can be recapitalized in many ways.

Debt 52

Debt Equities M&A Investors 52

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. 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 8, 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. This means that in the event of legal action or debt defaults, members' personal assets like homes, cars, and savings remain shielded.

Corporation 52

Corporation Business Finance Finance 52