Musings on Markets

MARCH 8, 2023

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

Dividends 102

Dividends Start-ups Finance Corporate Finance 102

Peak Business Valuation

MAY 18, 2024

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.

Business Valuation 52

Business Valuation Appraisal Finance Discounted Cash Flow 52

Equilest

MARCH 28, 2025

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

Equity Net Debt Enterprise Value Capital Structure 40

Class VI Partner

JULY 28, 2021

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.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Peak Business Valuation

MAY 28, 2024

Check out How to Value a Cleaning Service Company to learn more. Asset Approach The asset approach values a cleaning service based on its assets and liabilities. It is similar to determining a company’s book value from its balance sheet. Then, they calculate the net value of assets after deducting liabilities.

Business Valuation 52

Business Valuation Appraisal Discounted Cash Flow Finance 52

Valutico

MAY 6, 2024

Valutico | May 7, 2024 Valuation is really important in finance. This guide talks about the main ways we figure out value during M&A deals, why they’re useful, and what challenges they bring. Some techniques include comparing companies in the market, estimating future cash flows, and assessing the value of tangible assets.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Farrel Fritz

FEBRUARY 14, 2022

Though Ho-Walker had an impressive pedigree – a degree in finance and economics from the Stern School of Business at New York University and 15 years of experience in investment banking and private equity – he was not an accredited business appraiser, nor an expert.

Book Value 59

Book Value Appraisal Business Valuation Fair Market Value 59

Musings on Markets

FEBRUARY 27, 2022

To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar. The Value of Growth As investor tastes have shifted from earnings power to growth, there has been a tendency to put growth on a pedestal, and view it as an unalloyed good, but it is not.

Start-ups 98

Start-ups Equity Book Value Marketability 98

Shuster & Co.

AUGUST 15, 2023

The valuation process may incorporate different methods for determining a company’s value. This objectivity and professionalism are critical since valuations can often play a role in many significant company events that can profoundly impact the company’s financial circumstances and the finances of owners or shareholders.

Business Valuation 52

Business Valuation Book Value Accounting Firms Marketability 52

Shuster & Co.

JANUARY 14, 2023

Earnings Value/ROI-Based Valuation: This method determines your company’s value based on its profits and what kind of return on investment an investor could expect after buying your business. When you have a strong understanding of your company’s finances and worth, you can get the attention of potential buyers.

Business Valuation 52

Business Valuation Discounted Cash Flow Book Value Accounting Firms 52

Benzinga

FEBRUARY 27, 2023

billion – − Highly synergistic platforms and capital optimization will drive strong earnings per share accretion in 2024 and sustained long-term growth − − Expected value at closing of approximately $787 million − NEW YORK, Feb. per Broadmark share, representing a 41% premium or approximately 0.85x tangible book value as of December 31, 2022.

Book Value 40

Book Value Finance Market Capitalization Equity 40

Valutico

SEPTEMBER 22, 2023

This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. It is used to assess a company’s valuation relative to its net asset value.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Brian DeChesare

SEPTEMBER 13, 2023

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 103

Equity Banking EBITDA Start-ups 103

RNC

APRIL 22, 2024

Fair value less disposal costs (FVLCD) is the amount obtained from selling an asset, minus disposal expenses like legal fees and taxes. Value in Use (VIU) estimates future cash flows from asset use and is discounted for risks. If the recoverable amount (FVLCD or VIU) is less than the carrying (book) value, it indicates impairment.

Compliance 52

Compliance Intangible Assets Fair Market Value Book Value 52

Equilest

AUGUST 6, 2023

Whether you are an investor, a business owner, or a finance professional, the ability to accurately assess the worth of a company is crucial for making informed decisions. Liquidation Value: This method assesses the value of the company's assets if they were to be sold off in a liquidation scenario.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Shephard Mullin M&A

JUNE 8, 2023

There is no legal reason for this dynamic, which appears to be driven by generally accepted industry precedent and the disparate negotiating leverage that tends to exist in this industry between buyers, who are often large and well-finance consolidators, and sellers, many of whom are smaller, family-owned businesses looking for an exit.

Finance 52

Finance Going Concern Value Book Value Marketability 52

Benzinga

SEPTEMBER 28, 2022

year earnback) dilutive to tangible book value with and without purchase accounting interest rate marks, respectively. Both Provident and Lakeland have extensive experience successfully integrating with merger partners, and both are intensely focused on ensuring a smooth integration. The transaction is approximately 17% (3.6

Banking 40

Banking Book Value Finance Marketability 40

RNC

OCTOBER 1, 2024

In the language of finance, valuation is the process of figuring out how much an asset or business is now worth. It’s a crucial factor in determining the value of an investment. Price-to-Book Ratio (P/B) This ratio compares a company’s market value to its book value (assets minus liabilities).

Comparable Company Analysis 52

Comparable Company Analysis Price to Book Price to Earnings Book Value 52

Benzinga

SEPTEMBER 28, 2022

year earnback) dilutive to tangible book value with and without purchase accounting interest rate marks, respectively. Both Provident and Lakeland have extensive experience successfully integrating with merger partners, and both are intensely focused on ensuring a smooth integration. The transaction is approximately 17% (3.6

Banking 40

Banking Book Value Finance Marketability 40

Benzinga

OCTOBER 7, 2024

Blue Hill does not have committed financing, and its suggested transaction is dependent on numerous conditions, including its ability to overcome significant regulatory hurdles in a regulatory process that Blue Hill has not yet started. Blue Hill's Preliminary Indication of Interest is Illusory, Non-Binding and Highly Conditional.

Dividends 52

Dividends Banking Book Value Technology 52

Sun Acquisitions

OCTOBER 5, 2022

It’s an excellent way to establish a business’ fair value as the valuation itself is conducted by an independent third party. Business valuation experts may look into the organization’s earnings multipliers, market cap, and book value in order to give an objective estimation of the company’s worth.

Business Valuation 52

Business Valuation Earnings Multiplier Private Equity Firm Book Value 52

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.

EBIT 40

EBIT Debt Financing Book Value Finance 40

Musings on Markets

FEBRUARY 27, 2023

The "Right" Financing Mix Is there an optimal mix of debt and equity for a business? The answer is yes, though the payoff, in terms of value, from moving to that optimal may be so small that it is sometimes better to hold back from borrowing. Do companies optimize financing mix?

Equity 52

Equity EBITDA Start-ups Net Debt 52

Equilest

NOVEMBER 25, 2023

Introduction In the fiercely competitive landscape of finance, succeeding in a valuation interview requires a unique blend of knowledge, confidence, and strategic preparation. These interviews are not just a mere formality but a critical component of the hiring process in finance, investment banking, and consulting.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Reynolds Holding

APRIL 18, 2024

A basic tenant in finance is that risk and return go hand-in-hand, thus lower returns for CEFO firms suggest investors perceive them as less risky investments, thus requiring a rate of return lower than that of their non-CEFO counterparts of similar size and in the same industry.

Start-ups 49

Start-ups Book Value Compliance Finance 49

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. 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. Cap Ex & Net Cap Ex ((including acquisitons) 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Benzinga

SEPTEMBER 6, 2023

BVPS 3 is expected to increase by approximately 2% upon the issuance of common shares to finance the transaction. Intact will maintain a strong capital position after financing the transaction, with all regulatory capital ratios remaining at or above target operating levels.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

Benzinga

JUNE 12, 2023

per unit and the assumption of in-place financing Northview Residential REIT's portfolio will consist of 14,622 multi-family suites and execusuites and 1.25 per unit and the assumption of in-place financing Northview Residential REIT's portfolio will consist of 14,622 multi-family suites and execusuites and 1.25

Book Value 40

Book Value Marketability Fair Market Value Banking 40

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 This higher revenue ultimately flows through to earnings and capital. and its CET1 ratio would be cut from 14.3

Banking 45

Banking Book Value Start-ups Technology 45

Benzinga

JULY 10, 2023

With the completion of this transaction, SMGI's balance sheet is significantly improved, including a large increase in the book value of the combined company. Financing Structure: The transaction was financed through a $25.0 million (including $2.5 million of SMGI preferred stock and received a $3.0

EBITDA 40

EBITDA Book Value Capital Structure Marketability 40

Benzinga

APRIL 28, 2023

Book value per common share was $32.15 for the fourth quarter of 2022, while tangible book value per share (1) was $24.52 Resilient profitability: Earnings of $11.2 for the first quarter, compared to $32.24 at March 31, 2023, compared to $24.59, at December 31, 2022. million compared to net interest income of $38.6

Dividends 40

Dividends Banking Book Value Equity 40

Valutico

AUGUST 23, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Reynolds Holding

MAY 11, 2023

For our analysis, we draw on an earlier post , in which we argued that the actions of the Swiss authorities made sense from a corporate finance, legal, and financial stability perspective. According to the 2022 CS Annual Report , the book value per share was 11.45 First, investors in CS did bear a significant part of the losses.

Banking 45

Banking Equity Book Value Treasury 45

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. 2020) Stewardship and value-relevance in accounting for the depletion of purchased goodwill, in Amel-Zadeh and Meeks, eds. In the U.S.

Intangible Assets 45

Intangible Assets Book Value Banking Finance 45

IBG Business

MAY 31, 2023

They don’t require special financing; can be relied upon for a consistent, professional approach; and typically bring extensive expertise to the table. Your financial statements will be appropriately and accurately recast to show the business’s true earnings and book value.

EBITDA 52

EBITDA Marketability Equity Book Value 52

Benzinga

APRIL 26, 2023

Book value per common share of $22.79 Tangible book value per common share of $20.38 The unrealized losses, net of taxes, in the AFS portfolio were $18.0 million at March 31, 2023. at March 31, 2023 increased $0.66 from fourth quarter 2022 and increased $0.23 from first quarter 2022. at March 31, 2023 increased $0.67

Dividends 40

Dividends Banking Equity Book Value 40