Musings on Markets

AUGUST 19, 2024

In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book. In decline, multiples of book value will become more common, with book value serving as a (poor) proxy for liquidation or break up value.

Corporate Finance 121

Corporate Finance Finance Start-ups Dividends 121

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA). Fundamenal Growth in Operating Earnings 3.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Benzinga

MAY 4, 2022

May 04, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast") (NASDAQ: SBCF ), the holding company for Seacoast National Bank ("Seacoast Bank"), announced today that it has signed a definitive agreement to acquire Drummond Banking Company ("Drummond"), parent company of Drummond Community Bank based in Chiefland, FL.

Banking 40

Banking Book Value Marketability Technology 40

Benzinga

MAY 26, 2022

billion Expected to be accretive to earnings per share in year one Earn back of tangible book value dilution in approximately three years. MIDDLEFIELD, Ohio and ADA, Ohio, May 26, 2022 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. on May 25, 2022, the transaction is valued at approximately $64.4

Book Value 40

Book Value Banking Marketability 40

Benzinga

MARCH 29, 2022

March 29, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast") (NASDAQ: SBCF ), the holding company for Seacoast National Bank ("Seacoast Bank"), announced today that it has signed a definitive agreement to acquire Apollo Bancshares, Inc. as of March 28, 2022, the Apollo transaction is valued at approximately $168.3

Banking 40

Banking Book Value Marketability 40

Farrel Fritz

FEBRUARY 14, 2022

Justice Masley’s valuation decision in Quattro Parent LLC v Rakib , 2022 NY Slip Op 30190(U) [Sup Ct, NY County Jan. 14, 2022] is noteworthy for two reasons. Garibaldi valued Quattro using an asset approach based upon its “book value” as stated in its financial statement and tax return for the period ended December 31, 2015.

Book Value 59

Book Value Appraisal Business Valuation Fair Market Value 59

Benzinga

MARCH 21, 2023

As of December 31, 2022, Blackhawk had approximately $1.32 Estimated tangible book value per share dilution to First Mid is expected to be earned back in 1.9 As of December 31, 2022, Blackhawk had a loan-to-deposit ratio of approximately 65% and a fourth quarter cost of deposits of 0.51%. billion in deposits.

Book Value 40

Book Value Banking Equity Marketability 40

Musings on Markets

NOVEMBER 10, 2022

Without contesting the basic conclusion that Facebook had a bad operating quarter, after its earnings report for the third quarter of 2022, let's review the accounting numbers to see how bad it truly was, and why. billion in the last twelve months (ending September 2022). billion to $49.3 billion , as reported. billion , as reported.

Finance 97

Finance Start-ups Equity Equity Financing 97

Benzinga

JUNE 14, 2022

ARCHBOLD, Ohio, June 14, 2022 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. ("F&M", At March 31, 2022, PPSF reported $132.7 As of March 31, 2022, PPSF reported 1,167,025 shares of common stock outstanding. billion on a pro forma basis as of March 31, 2022. million in total assets, $99.9

Banking 40

Banking Book Value Equity Marketability 40

Benzinga

APRIL 28, 2023

million, or 10.7% (annualized), from the fourth quarter of 2022. Loan growth was 11.2% (annualized) during the three months ended March 31, 2023 from the fourth quarter of 2022. Tax equivalent net interest margin changed to 3.49% from 3.80% in the prior quarter and 3.21% in the first quarter of 2022. Deposits grew $99.8

Dividends 40

Dividends Banking Book Value Equity 40

Benzinga

AUGUST 18, 2022

18, 2022 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (NASDAQ: TOWN ) and Farmers Bankshares, Inc. Based on financials reported on June 30, 2022 the combined companies would have total assets of $17.5 This implies a deal value per share of $17.82, or approximately $56.0 ending Wednesday, August 17, 2022. SUFFOLK, Va.

Banking 40

Banking Book Value Marketability 40

Benzinga

MAY 4, 2022

May 04, 2022 (GLOBE NEWSWIRE) -- United Community Banks, Inc. as of May 3, 2022. as of May 3, 2022. As of March 31, 2022, Progress had total assets of $1.9 GREENVILLE, S.C. and HUNTSVILLE, Ala., million, or $23.52 per share of Progress common stock, based on United's closing stock price of $30.55 million, or $23.52

Banking 40

Banking Book Value Marketability 40

Benzinga

AUGUST 23, 2022

23, 2022 (GLOBE NEWSWIRE) -- HBT Financial, Inc. Specializing in commercial banking, Town and Country Bank had total assets of $875 million, total loans held for investment of $624 million, and total deposits of $744 million as of June 30, 2022. Short tangible book value dilution earnback period of 2.0 BLOOMINGTON, Ill.

Banking 40

Banking Book Value Marketability 40

Benzinga

AUGUST 23, 2022

23, 2022 (GLOBE NEWSWIRE) -- HBT Financial, Inc. Specializing in commercial banking, Town and Country Bank had total assets of $875 million, total loans held for investment of $624 million, and total deposits of $744 million as of June 30, 2022. Short tangible book value dilution earnback period of 2.0 BLOOMINGTON, Ill.

Banking 40

Banking Book Value Marketability 40

Benzinga

APRIL 26, 2023

per basic common share, for the fourth quarter ended December 31, 2022 (fourth quarter 2022), and $3.5 per basic common share, for the first quarter ended March 31, 2022 (first quarter 2022). million for first quarter 2023 increased $755 thousand, or 5.3%, versus fourth quarter 2022 and increased $3.8

Dividends 40

Dividends Banking Equity Book Value 40

Benzinga

NOVEMBER 13, 2022

13, 2022 (GLOBE NEWSWIRE) -- Washington Federal, Inc. Unlike so many comparable transactions, this transaction does not negatively affect our tangible book value and is accretive to forward-estimated earnings and capital. SANTA ROSA, Calif., It creates scale. It creates a contiguous footprint from Seattle to Austin.

Banking 40

Banking Book Value 40

Benzinga

SEPTEMBER 28, 2022

27, 2022 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. NASDAQ: LBAI ) ("Lakeland"), the parent company of Lakeland Bank, today announced that they have entered into a definitive merger agreement pursuant to which the companies will combine in an all-stock merger, valued at approximately $1.3 ISELIN, N.J. and OAK RIDGE, N.J.,

Banking 40

Banking Book Value Finance Marketability 40

Benzinga

SEPTEMBER 28, 2022

27, 2022 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. NASDAQ: LBAI ) ("Lakeland"), the parent company of Lakeland Bank, today announced that they have entered into a definitive merger agreement pursuant to which the companies will combine in an all-stock merger, valued at approximately $1.3 ISELIN and OAK RIDGE, NJ.,

Banking 40

Banking Book Value Finance Marketability 40

Benzinga

FEBRUARY 27, 2023

per Broadmark share, representing a 41% premium or approximately 0.85x tangible book value as of December 31, 2022. The respective closing stock prices for Ready Capital and Broadmark on February 24, 2023 imply an offer price of $5.90

Book Value 40

Book Value Finance Market Capitalization Equity 40

Benzinga

FEBRUARY 13, 2023

As of December 31, 2022, FNBSM had total assets of $1.0 The estimated transaction returns are consistent with United's stated acquisition criteria pertaining to tangible book value and targeted internal rates of return. billion, total loans of $594 million, and total deposits of $867 million. per share, or 3% in 2024.

Banking 40

Banking Book Value Dividends Marketability 40

Musings on Markets

FEBRUARY 15, 2023

As I have argued in all four of my posts, so far, about 2022, it was year when we saw a return to normalcy on many fronts, as treasury rates reverted back to pre-2008 levels, and risk capital discovered that risk has a downside.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Reynolds Holding

FEBRUARY 12, 2024

According to Bologna, if SoFi had elected to account for loans at amortized cost and had to take CECL reserves similar to peers, its tangible book value per share reported for the third quarter of 2023 would fall from $3.42 percent minimum requirement set by regulators when it became a bank in 2022. percent to 8.9

Banking 45

Banking Book Value Start-ups Technology 45

Benzinga

SEPTEMBER 6, 2023

Direct Line's brokered Commercial Lines generated written premiums 4 of £530 million in 2022, and delivered an average combined ratio 5 6 of approximately 96% across 2021 and 2022. billion in 2022. The transaction will result in the transfer of renewal rights, brands, employees, and systems to RSA.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

Andrew Stolz

JANUARY 12, 2022

Hyundai has allocated 2022 CAPEX of US$1.1bn, roughly 15% of its total CAPEX budget, to develop two further fuel cell plants. Book value is the value attributable to shareholders in case the company sells all its assets and repays its liabilities (also called liquidation value). Scale from 1 (Best) to 10 (Worst).

EBIT 52

EBIT Price to Book Book Value Liquidation Value 52

Reynolds Holding

FEBRUARY 21, 2024

they opted for pooling accounting, in which goodwill was not recognized and therefore not amortized; the book value of the assets and liabilities of the two businesses were just added together. Initially they favored hiding goodwill. In the U.S. Review of Accounting Studies , 17(4), pp. 11] Hoogervorst, H. and Meeks, J.G.

Intangible Assets 45

Intangible Assets Book Value Banking Finance 45

ThomsonReuters

JUNE 15, 2021

Goodwill is an accounting term for the figure that is recorded on the balance sheet after subtracting the book value of a business from the higher price that was paid for it. ASC 842, Leases , a substantially new accounting standard that public companies have already adopted but goes into effect in 2022 for private companies.

Risk-free Rate 64

Risk-free Rate Equity Start-ups Book Value 64

Valutico

DECEMBER 15, 2022

Price/Book : This multiple compares the price to the book value of a firm. One can, however, also conduct valuation exercises for several years for each multiple, i.e. using an EV/EBITDA approach for 2021, 2022 and 2023 (provided we have forecast EBITDA figures for our comparable companies and our target company).

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

Price/Book : This multiple compares the price to the book value of a firm. One can, however, also conduct valuation exercises for several years for each multiple, i.e. using an EV/EBITDA approach for 2021, 2022 and 2023 (provided we have forecast EBITDA figures for our comparable companies and our target company).

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Benzinga

JUNE 12, 2023

Balance Sheet and Liquidity Strengthening: The Acquisitions are expected to deleverage and strengthen Northview's balance sheet, with debt to gross book value expected to decrease by approximately 500 basis points. Northview also intends to complete a 1.75

Book Value 40

Book Value Marketability Fair Market Value Banking 40

Benzinga

JULY 26, 2023

Financial Highlights of the Transaction The total estimated consideration of $395 million: i) represents less than 2.75x of expected EBITDA in 2024, ii) is estimated to be less than the book value of MacKellar's assets and iii) is expected to be over 50% accretive based on incremental earnings per share. billion $1.15

EBIT 40

EBIT Debt Financing Book Value Finance 40

Reynolds Holding

MAY 11, 2023

According to the 2022 CS Annual Report , the book value per share was 11.45 This means that, compared with the account value of 2022, CS shareholders lost more than 42 billion CHF. Accounting values are clearly imperfect, but they are the metric that matters for determining bank insolvency.

Banking 45

Banking Equity Book Value Treasury 45

Benzinga

JULY 10, 2023

Based on audited pro forma 2022 combined revenues of $153 million and pro forma 2022 estimated adjusted EBITDA of $18.2 Based on audited pro forma 2022 combined revenues of $153 million and pro forma 2022 estimated adjusted EBITDA of $18.2 million (including $2.5 million (including $2.5

EBITDA 40

EBITDA Book Value Capital Structure Marketability 40

Musings on Markets

JANUARY 6, 2023

For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. It is undeniable that 2022 was a tumultuous year, with inflation taking center stage, and driving markets.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Reynolds Holding

NOVEMBER 8, 2023

Continuing the ESG Performance and Enterprise Value series, this post applies regression analysis to a global sample of companies over a five-year period (June 2017 to June 2022), in order to explore the relationship from a regional perspective. ,” which dove deeper into this relationship from a sector-specific standpoint.

Enterprise Value 52

Enterprise Value Price to Book Marketability Book Value 52

Shephard Mullin M&A

JUNE 8, 2023

By early 2021, the industry had effectively made a full recovery in spite of supply chain and inventory challenges and M&A activity in this space rebounded accordingly, with a record 383 transactions completed in 2021, and an estimated 374 transactions completed in 2022. Despite larger U.S. Cash and Other Working Capital.

Finance 52

Finance Going Concern Value Book Value Marketability 52

Musings on Markets

JULY 22, 2021

Revenue Share : While the market share and total market yield the gross order value for Zomato, the company posts only its share of these orders, as revenues. I will assume a partial bounce back to 22% of GOV , starting in 2022, but the presence of Amazon Food will prevent a return to higher values in the future.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Farrel Fritz

MARCH 4, 2024

“Under any standard of value, the true economic value of a business enterprise will equal the company’s accounting book value only by coincidence.” So why do so many shareholder buy-sell agreements require that the shares be purchased for book value? Neville, Rodie and Shaw, Inc. 16, 2024) is the latest.

Book Value 69

Book Value Business Enterprise Business Valuation 69