article thumbnail

Accounting Information and Risk Shifting with Asymmetrically Informed Creditors

Harvard Corporate Governance

This post is based on their recent article forthcoming in the Journal of Accounting and Economics. fair value accounting) affect equity markets, it remains largely unexplored in debt markets.

Banking 112
article thumbnail

Innovative Financing Strategies for M&A Deals Amid Economic Uncertainty

Sun Acquisitions

Traditional financing methods may seem risky or unfeasible when markets are volatile or unpredictable. However, amidst these challenges lie opportunities for creativity and innovation in financing solutions. This form of financing can be handy when traditional debt financing is unavailable or insufficient.

Finance 59
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Matching Financial Strategies to Business Acquisition Goals

Sun Acquisitions

This article explores the significance of matching financial plans to business acquisition goals and how this synergy can lead to prosperous outcomes. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control.

article thumbnail

The Art of Business Acquisition: Strategies for Success and Financing Choices

Sun Acquisitions

However, mastering the art of business acquisition involves more than just signing a deal; it requires careful planning, tailored strategies, and astute financing choices. Factors Influencing Financing Choices Available Capital Your existing financial resources play a crucial role in determining your financing choices.

Finance 59
article thumbnail

What are Debt Warrants and How Do They Work for Startups?

Lighter Capital

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, warrants, debt covenants , and even whether we require a personal guarantee. When should you consider debt warrants?

article thumbnail

Corporate Sustainable Finance

Reynolds Holding

Sustainable debt financing—bonds issued to support projects that benefit the environment or social welfare—has skyrocketed over the past decade, rising from a niche market to a trillion-dollar business. But this development raises a significant question: What motivates private companies to engage in sustainable finance?

Finance 45
article thumbnail

The Twitter Buyout: Is Elon Musk a Madman or a Genius?

Brian DeChesare

The 10-K and loan/financing document are the most important parts because you need the company’s annual statements to build a model, and you need the debt tranches, interest rates, etc., to build in the LBO functionality. We assume this differential will continue, reducing its cash flows in the holding period.

EBITDA 111