Brian DeChesare

SEPTEMBER 13, 2023

Plot Out the Possible Scenarios – And estimate the market value of each Debt tranche and the company’s Equity in the most likely outcomes Create Your Trade – The simplest approach is to long one part of the capital structure and short another, but you could also long or short just one component and use options or CDS to hedge the risk.

Equity 103

Equity Banking EBITDA Start-ups 103

Valutico

OCTOBER 20, 2022

B = Beta. (Rm DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Ce = Cost of Equity. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Brian DeChesare

JULY 27, 2022

4) Moderate Net Exposure and Beta – Most credit funds are in the middle of the pack here, with Betas to equities and bonds in the 0.4 – 0.5 For example, why might Bond A have a 10% YTM with an 8% coupon rate while Bond B has a 9% YTM with a 10% coupon rate if they have the same ranking in the capital structure?

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Brian DeChesare

MAY 24, 2023

Capital Structure Trades – Or you could focus on Jacobs’ ~$4 billion in debt and long or short some of their bonds (or use credit default swaps) if you believe its credit rating will change once the deal takes place. But lock-up periods are longer than most long/short equity funds.

Equity 64

Equity Start-ups EBITDA Banking 64

Appraiser Newsroom

JUNE 4, 2024

He is member of the Beta Gamma Sigma Honor Society, Financial Executives International, and the National Association of Corporate Directors (NACD). Dr. Everett also has an M&A Advisory and business valuation practice.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59

Brian DeChesare

JUNE 29, 2022

The solutions usually involve replacing Board members or executives, divesting assets, changing the capital structure, cutting costs, adopting new strategies, and sometimes selling the entire company. Elliott’s presentation to Suncor after they announced a 3.4%

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

Musings on Markets

FEBRUARY 27, 2023

While accountants, CFOs and bankers are fond of the book value measure, almost everything in corporate finance revolves around market value weights, including the debt to equity ratios we use to adjust betas and costs of equity and the debt to capital ratios used in computing the cost of capital.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Brian DeChesare

AUGUST 10, 2022

The entire Energy Services vertical is like a “high Beta” play on oil and gas prices. The tricky part is understanding the MLP structure and the tax, dividend, and capital structure differences that it creates.

Banking 98

Banking EBITDA Dividends Equity 98