Harvard Corporate Governance

OCTOBER 19, 2022

Allocating high-vote shares to a class of stockholders – typically the founders, a combination of founders and pre-IPO investors, or all pre-IPO stockholders (including holders of equity granted under employee equity plans and warrantholders) – allows those stockholders to maintain majority voting control after completion of the company’s IPO, while, (..)

Equity 259

Equity Capital Structure 259

Equilest

MARCH 28, 2025

distressed firms) Companies facing bankruptcy Impact on Investors and Stakeholders Risk to shareholders Implications for lenders and creditors How Negative Equity Affects Valuation Impacts on stock price Effect on mergers and acquisitions Can a Business Recover from Negative Equity? How does negative equity affect dividends?

Equity 40

Equity Net Debt Enterprise Value Capital Structure 40

Auto Dealer Valuation Insights

JULY 9, 2024

Since the turn of the century, pension funds have increasingly turned to private equity investments in a bid to earn higher returns. As detailed in a recent Wall Street Journal article, pension funds have boosted private equity allocations from just 3% of their portfolios in 2001 to 14% in 2023.

Equity 59

Equity Capital Structure 59

Equidam

AUGUST 10, 2023

Guest post from an Equidam partner: Bianca Iulia Simion , Marketing Lead at SeedBlink As the world of startups continues to evolve and mature, navigating the intricacies of equity management has emerged as a critical aspect of successful entrepreneurship. This leads to confusion and potential conflict during fundraising rounds.

Equity 52

Equity Capital Structure Dividends Marketability 52

Brian DeChesare

FEBRUARY 9, 2022

Ask the average student or professional in the finance industry about their long-term career goal, and they’ll usually say, “ private equity mega-funds. ”. Similar to middle market private equity , though, there are some definitional problems here. Definitions: What is a Private Equity Mega-Fund?

Equity 59

Equity Banking Start-ups Finance 59

Auto Dealer Valuation Insights

AUGUST 26, 2024

A few weeks ago, we observed private equity investors learning a lesson about liquidity risk, which family shareholders have always known. This week, we turn the tables and explore a PE strategy that might be worth considering for some family businesses.

Equity 52

Equity Marketability Capital Structure Dividends 52

Andrew Stolz

AUGUST 6, 2020

The theory suggests that a company’s capital structure and the average cost of capital does not have an impact on its overall value. . It doesn’t matter whether the company raises capital by borrowing money, issuing new shares, or by reinvesting profits in daily operations. Definition of the Modigliani-Miller Theorem.

Debt Financing 52

Debt Financing Capital Structure Equity Finance 52

Auto Dealer Valuation Insights

SEPTEMBER 6, 2024

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded common… Source

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

JUNE 6, 2024

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded common… Source

Capital Structure 52

Capital Structure Equity Marketability 52

Benzinga

FEBRUARY 18, 2025

The transaction will bring KKR’s total stake in Enilive to 30% and the investment aims to enhance Eni’s capital structure while ensuring Eni retains control and consolidation of Enilive. billion euros in equity value for 100% of Enilive’s share capital. The deal is expected to close next month.

Capital Structure 52

Capital Structure Equity 52

Auto Dealer Valuation Insights

DECEMBER 1, 2023

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded common.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

AUGUST 25, 2023

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

JUNE 23, 2023

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

MARCH 10, 2023

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

NOVEMBER 18, 2022

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

AUGUST 26, 2022

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

JUNE 3, 2022

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

MARCH 17, 2022

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded.

Capital Structure 52

Capital Structure Equity Marketability 52

Auto Dealer Valuation Insights

MARCH 7, 2024

Due to a variety of corporate structures (including master limited partnerships and Up-Cs) and complex capital structures (including preferred equity and non-traded common… Source

Capital Structure 52

Capital Structure Equity Marketability 52

Reynolds Holding

FEBRUARY 7, 2024

In a recent paper, we make the case for a smart contract-based automated restructuring framework that can be used by any firm that issues equity and debt securities in tokenized form. Since it is now possible to administer capital structures on the blockchain, opening them up to smart contract automation has become a reality.

Capital Structure 45

Capital Structure Equity Finance 45

Scott Mashuda

JANUARY 9, 2024

Entrepreneurial business owners can gain a substantial competitive edge in the lower middle market by recognizing the benefits of balance sheet restructuring, particularly when private equity collaborates as a partner for a defined period of time or a family office serves as your evergreen business partner.

Capital Structure 52

Capital Structure Equity Marketability Finance 52

Value Scout

FEBRUARY 13, 2023

It involves the partial sale of the company to private equity firms or venture capitalists. Recapitalization helps stabilize the capital structure of a company by restructuring its equity and debt. They gain both capital resources and access to professional strategic counsel to maximize business value.

Private Equity Firm 94

Private Equity Firm Equity Start-ups Capital Structure 94

Andrew Stolz

MARCH 20, 2020

Weight average cost of capital (WACC) is a calculation of a firm’s cost of capital which includes all sources of capital such as common stocks, preferred stocks, and bonds. A firm uses a mix of equity and debt to minimize the cost of capital. Difference Between Cost Method and Equity Method.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Value Scope

AUGUST 31, 2020

Commodities, including oil and gas, are far more volatile than other asset classes like fixed-income and equities. The cash flows we isolate are tested for their ability to support debt, the new capital structure of the restructured firm. Why is Energy Different? Conclusion.

Capital Structure 130

Capital Structure Finance Marketability Compliance 130

Equilest

JANUARY 8, 2023

describe the relationship between the capital structure of the firm and its value. . It is often used as a benchmark for evaluating the financial decisions of firms and has been influential in shaping how firms approach financing and capital structure. . . Suppose also the weighted average cost of capital is 10%.

Weighted Average Cost of Capital 40

Weighted Average Cost of Capital Business Valuation Capital Structure Debt Financing 40

Auto Dealer Valuation Insights

DECEMBER 16, 2024

Cash-strapped early-stage companies have long relied on equity-based compensation to attract, motivate, and retain employees. Employees endure long nights of software coding or other work, comforted by visions of riches when the company reaches the goal line (the initial public offering).

Equity 52

Equity Capital Structure 52

Sun Acquisitions

SEPTEMBER 20, 2024

Mezzanine Financing: Mezzanine financing sits between equity and debt in the capital structure and is often used to fund M&A transactions. Mezzanine lenders provide capital in exchange for a combination of interest payments and an equity stake in the target company.

Finance 59

Finance Debt Financing Equity Capital Structure 59

Andrew Stolz

AUGUST 5, 2020

The WACC is the average cost of raising capital from all sources, including equity, common shares, preferred shares, and debt. What Impacts the Weighted Average Cost of Capital? Formula: [Cost of Equity * % of Equity] + [Cost of Debt * % of Debt *(1 – Tax Rate)] + [Cost of Preferred Stock * % of Preferred Stock].

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Equity Capital Structure Equity Financing 52

Sun Acquisitions

APRIL 26, 2024

On the flip side, if the merger generates synergies and increased profitability, debt financing can yield substantial rewards, as debt is often lower than equity. Equity Financing: Dilution vs. Stability Equity financing involves issuing new shares to raise capital for the M&A transaction.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

Brian DeChesare

MAY 3, 2023

And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation). And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

JUNE 1, 2022

Power and Utilities Investment Banking Definition: In power/utilities IB, bankers advise companies that produce, transmit, and distribute electricity, natural gas, and water on raising debt and equity and completing mergers and acquisitions. It’s safe to say that they have encouraged more deal activity.

Banking 98

Banking Equity Book Value Capital Structure 98

RNC

MAY 21, 2024

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. The term “Compulsory Convertible Debentures” refers to a combination of two financial tools: debt and equity.

Debt Financing 52

Debt Financing Equity Finance Business Valuation 52

Reynolds Holding

APRIL 29, 2024

What would otherwise be negotiations between insiders on both sides (the board of directors, who are appointed by equity, and equity holders) is transformed into an unconflicted negotiation when the bankruptcy directors are delegated authority by the board of directors.

Capital Structure 45

Capital Structure Equity Marketability 45

Reynolds Holding

MAY 29, 2024

In a new paper, I argue that this and other debt-related developments have significantly affected the dynamics among directors, debtholders, shareholders, and other corporate constituencies, changed the relationship between debt and equity, and given debtholders more ways and incentives to influence a company and its governance.

Corporate Finance 53

Corporate Finance Finance Banking Equity 53

Benzinga

AUGUST 23, 2023

million from the SPAC sponsor converting a loan into equity on the same terms as the PIPE. million of capital has already been committed. · This funding is expected to be anchored by investors affiliated with Sweat Equity Partners and Mercury Life Sciences. million of capital has already been committed, including $7.0

Equity 40

Equity Enterprise Value Capital Structure EBITDA 40

Lighter Capital

FEBRUARY 13, 2024

Equity dilution is part of growing a successful startup. How to Prevent Excessive Equity Dilution in Your Startup 1. Bootstrap your way to early milestones If you can, focus on growing the business organically before you pursue equity funding. Take only as much capital as you need More isn’t always better.

Equity 52

Equity Finance Debt Financing Capital Structure 52