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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. 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.

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META Lesson 2: Accounting Inconsistencies and Consequences

Musings on Markets

Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance. That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field.

Finance 96
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Challenging The Banks

Global Finance

Higher interest rates have given banks some relief over the past few years, increasing their net interest income while hampering competitors—particularly fintech startups dependent on equity financing. Equity investors value Visa at 29 times earnings and 13 times book value, according to Bloomberg.

Banking 104
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Ready Capital and United Development Funding IV Announce Definitive Agreement for Ready Capital to Acquire United Development Funding IV

Benzinga

Adds scale and extends Ready Capital's core platform with UDF IV's proven land development lending platform Diversifies Ready Capital's portfolio and offers land development solution to borrowers and investors Expected to be accretive to Ready Capital's earnings and book value in 2025 UDF IV shareholders may receive up to $5.89

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Business Valuation for Buying a Hotel

Peak Business Valuation

Check out How to Value a Hotel or Motel to learn more. Asset Approach The asset approach values the hotel based on its assets and liabilities. It is similar to determining a company’s book value from its balance sheet. A business appraiser calculates the net value of assets after deducting liabilities.

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Can Equity Value Be Negative?

Equilest

Introduction Brief Explanation of Equity Value Equity value, a cornerstone concept in finance, fundamentally represents the ownership interest in a company after all liabilities have been accounted for. Eventually, accumulated losses can surpass the value of assets, pushing the company into a state of negative equity.

Equity 40
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M&A Terms Every Business Owner Should Know

Class VI Partner

Adjusted Net Book Value Adjusted Net Book Value is the Book Value of a business that has been adjusted to reflect the current market value of the assets and liabilities of a company. In this case, an adjustment to the value of these assets is required to determine Adjusted Net Book Value.