article thumbnail

Debt vs. Equity Financing: Which is better?

Equilest

Debt vs. Equity Financing: Which is better? According to the finance theory - there are two basic ways to finance the activity of a business - equity and foreign capital. Equity is an investment by owners who expect to receive an inevitable return for their investment. Tamir Levy, Ph.D.

article thumbnail

Modigliani-Miller Theorem - is it Any Good For Business Valuation?

Equilest

Are they useful in Business Valuation? The Modigliani-Miller theorem is a fundamental principle in finance that . Firm A has a higher proportion of debt financing, while Firm B has a higher proportion of equity financing. Debt financing: 60% * 100 million USD = $60 million. Let's discuss. Conclusion.

Insiders

Sign Up for our Newsletter

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

article thumbnail

SBA Loan for Business Purposes

Peak Business Valuation

Obtaining an SBA loan for business purposes can be a complex, multi-step process. For more guidance, schedule a free consultation with Peak Business Valuation. As a business appraiser , we help thousands of small businesses across the country. For more information, see Debt vs. Equity Financing.

article thumbnail

Finding the Balance in Your Optimal Capital Structure

Equilest

Whether you're deciding how much debt to take on or how to manage equity financing, the right mix can lower your cost of capital and boost growth. Dive deeper into the intricacies of capital structure and explore how Equitest’s business valuation software can simplify the process. Downsides of relying too much on equity.

article thumbnail

Understanding Startup Valuation: A Guide for Investors and Venture Capitalists

RNC

By considering perspectives conducting research and questioning our own assumptions we can strive for a more unbiased and accurate valuation process. Each valuation model has its advantages and disadvantages so by using models investors can overcome the limitations of individual approaches.

article thumbnail

Precision vs. Reality: Exploring Challenges in Equity Valuation

RNC

By considering perspectives conducting research and questioning our own assumptions we can strive for a more unbiased and accurate valuation process. Each valuation model has its advantages and disadvantages so by using models investors can overcome the limitations of individual approaches.

Equity 52
article thumbnail

What is Compulsory Convertible Debentures?

RNC

When raising funds, the primary question is whether to opt for equity or debt financing. Equity financing risks diluting ownership stakes in the company, while debt financing entails hefty interest rates. Reach out today for customised business valuation solutions. first appeared on RNC.