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Private Equity Fundamentals: A Comprehensive Course for Beginners

OfficeHours

Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.

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10 Concepts We Can Learn About Media Asset M&A in How2Exit's Interview W/ Michael Fink, Co-CEO Of Treasure Hunter

How2Exit

In 2019, they saw the rise of big media companies entering the space, such as CNN and the New York Times. Michael and his wife have achieved success without taking on any investors or business agents, and without any debt in their balance sheets. They acquire assets at a fair price point and then aggregate them to create a portfolio.

M&A 130
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How the Growth of Private Credit is Impacting Private Equity

OfficeHours

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.

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10-20-2023 Newsletter: Why PE Investors Care About Inflation

OfficeHours

For example, if a private equity firm invested $100M into a portfolio company with a 20% expected rate of return, this return would not actually be 20% if the calculations were not adjusted for inflation. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 130
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Why PE Investors Care About Interest Rates

OfficeHours

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
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Why PE Investors Care About Inflation

OfficeHours

For example, if a private equity firm invested $100M into a portfolio company with a 20% expected rate of return, this return would not actually be 20% if the calculations were not adjusted for inflation. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 100
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How to Stand Out in a Competitive Private Equity Associate Job Market

OfficeHours

Naturally, proficiency in Excel is of the utmost importance, but ensuring you understand the right financial model is equally important; be sure to practice your paper LBO and Excel debt-focused models through courses to give yourself an edge. Understand the Firm Research the private equity firm thoroughly. and how our process works.