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

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

Reynolds Holding

MAY 29, 2024

Since the global financial crisis of 2007-2008, the corporate finance markets have been dramatically transformed. Most notable has been the rise of non-traditional providers of debt finance such as private credit funds, which now aggressively compete with traditional finance providers like commercial banks.

Corporate Finance 53

Corporate Finance Finance Banking Equity 53

Value Scope

AUGUST 31, 2020

Commodities, including oil and gas, are far more volatile than other asset classes like fixed-income and equities. This is how we use it in finance, economics, etc. 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?

Capital Structure 130

Capital Structure Finance Marketability Compliance 130

Equilest

JANUARY 8, 2023

The Modigliani-Miller theorem is a fundamental principle in finance that . describe the relationship between the capital structure of the firm and its value. . Their work was groundbreaking at the time and has had a lasting impact on finance. - Are they useful in Business Valuation? Let's discuss. Why is that?

Weighted Average Cost of Capital 40

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

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

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

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

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

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

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. It usually involves an exchange of one form of financing for another. What is Recapitalization?

Private Equity Firm 94

Private Equity Firm Equity Start-ups Capital Structure 94

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. ” Different banks classify their power & utilities groups differently.

Banking 98

Banking Equity Book Value Capital Structure 98

Lighter Capital

JANUARY 11, 2022

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, warrants, debt covenants , and even whether we require a personal guarantee. Do all startup loans come with warrants? Let's dive in.

Debt Financing 52

Debt Financing Equity Finance Start-ups 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

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

Andrew Stolz

APRIL 3, 2020

Leveraged Buyout (“LBO”) is a quite common term in Corporate Finance field. It refers to acquiring a company (or its part) and financing it with debt. The buyer (the “sponsor”) raises debt and equity to acquire the target. It borrows the majority of the purchase price and contributes proportionately small equity investment.

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Reynolds Holding

APRIL 17, 2022

Investors are willing to finance an innovation project when early results from the project – revenue trends, user growth, clinical trial data – reliably indicate future profits. The most innovative part of the economy, the venture capital (VC) market, has evolved structures to address these agency problems. But there’s a catch.

Technology 85

Technology Net Present Value Finance Equity 85

Reynolds Holding

APRIL 25, 2023

We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding. To see this distinction, consider the choice of capital structure: whether to use equity financing or a combination of equity and debt.

Net Present Value 45

Net Present Value Corporate Finance Finance Equity 45

Simply Treasury

AUGUST 2, 2022

DEBRA Proposal (« Debt-Equity Bias Reduction Allowance). In early May, the European Commission unveiled its proposal for a "DEBRA" (Debt-equity bias reduction allowance) Directive, aimed at encouraging companies to finance their investments with equity and capital contributions, instead of resorting to loans (bank or other).

Equity 52

Equity Risk Premium Banking Finance 52

Scott Mashuda

JUNE 6, 2024

This comprehensive framework is designed to align the business owner’s goals across three areas: their business, personal life, and finances. Here’s how: During the Prepare phase, REAG’s expertise in capital stack structuring becomes invaluable for CEPAs and their clients.

Debt Financing 40

Debt Financing Capital Structure Finance Equity 40

Valutico

MAY 6, 2024

Valutico | May 7, 2024 Valuation is really important in finance. Valuation methods for mergers and acquisitions (M&A) are important for figuring out fair prices, negotiating deals, getting financing, and following rules. It’s about figuring out how much an asset or company is worth right now.

Discounted Cash Flow 52

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

Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. Cost of Equity: The cost of equity represents the return required by equity investors to compensate them for the risk of owning a company’s shares.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Lighter Capital

JULY 11, 2024

Turn your startup's revenue into cash runway Complete our fast, secure online application to get up to $4 million to keep growing your SaaS business without giving up equity or ownership. It can be achieved by increasing sales, reducing expenses, or securing financing.

Finance 59

Finance Dividends Start-ups Capital Structure 59

Cooley M&A

SEPTEMBER 16, 2024

Successful mergers of equals transactions prove the age-old saying that the whole is greater than the sum of its parts by providing the go-forward company with new access to financing and the opportunity to diversify revenue, build to scale and/or streamline operations.

Equity 52

Equity Finance Capital Structure Equity Financing 52

Andrew Stolz

NOVEMBER 17, 2021

When I started in finance, buybacks were almost unheard of; now, companies prefer to distribute cash through buybacks. This usually happens when a company is making a deliberate and significant change to its capital structure. Consider research done by Kroen (2021) that shows that since about 1998, U.S.

Dividends 52

Dividends Capital Structure Banking Start-ups 52

Brian DeChesare

JULY 27, 2022

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. To simplify, we can say that credit hedge funds operate in three main areas: Long/Short Credit – It’s similar to long/short equity , but with bonds rather than stocks. See the example above.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Benzinga

AUGUST 28, 2024

The exchange ratio is based on a pre-transaction equity value of Tactical Resources of US$500 million. For illustrative purposes only, based on the Company's current capitalization structure, the exchange ratio would be 1.0477 Pubco Shares received for each Company Share held. million, calculated on a fully diluted basis.

Enterprise Value 40

Enterprise Value Equity Financing Equity Net Debt 40

Brian DeChesare

MAY 24, 2023

“Event-driven hedge funds” is one of the more confusing labels in finance. A long/short equity fund could find an undervalued company, like it for reasons A, B, and C, and argue that its price will increase by 50%. But lock-up periods are longer than most long/short equity funds.

Equity 64

Equity Start-ups EBITDA Banking 64

Reynolds Holding

DECEMBER 10, 2023

As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. The point being that although the logic for each of these rationales is distinct, the very act of doing a share buyback influences the whole of the corporate finance ecosystem.

Dividends 45

Dividends Total Shareholder Return Corporate Finance Finance 45

Appraiser Newsroom

APRIL 24, 2024

Additionally, she completes valuations of financial instruments including preferred and common stock in complex structures for publicly and privately held companies and equity derivatives. Samantha Albert | Mercer Capital Samantha Albert is a vice president with Mercer Capital.

Intangible Assets 52

Intangible Assets Business Valuation Capital Structure Business Enterprise 52

Benzinga

FEBRUARY 6, 2024

(NASDAQ: ZFOX ) ("ZeroFox"), a leading provider of external cybersecurity, today announced that it has entered into a definitive agreement to be acquired by Haveli Investments, a technology-focused private equity firm, in an all-cash transaction with an enterprise value of approximately $350 million.

Private Equity Firm 45

Private Equity Firm Capital Structure Enterprise Value Finance 45

Reynolds Holding

MAY 10, 2023

Some Chapter 11 proceedings yield a stand-alone restructuring where either (1) existing equity interests are eliminated and creditors emerge as the debtor’s new equity owners in exchange for their pre-bankruptcy claims or (2) a “plan sponsor” injects new capital in to the debtor in exchange for equity in the reorganized entity.

Going Concern Value 49

Going Concern Value Finance Equity Technology 49

Reynolds Holding

FEBRUARY 13, 2025

21] Other than that, no maintenance covenant is included and leverage is tested only on an incurrence basis (for example, when incremental debt is incurred or distributions to equity-holders are paid). [22] 28] The unitranche structure entails higher risk but also features a higher yield than traditional senior financings.

Banking 45

Banking Finance Marketability Equity 45

Benzinga

APRIL 12, 2023

("BIP") (NYSE: BIP , TSX: BIP ), through its subsidiary Brookfield Infrastructure Corporation ("BIPC") and its institutional partners (collectively, "Brookfield Infrastructure"), jointly announce a definitive agreement for Triton to be acquired in a cash and stock transaction valuing the Company's common equity at approximately $4.7

Total Shareholder Return 40

Total Shareholder Return Capital Structure Enterprise Value Dividends 40

Appraiser Newsroom

JUNE 4, 2024

Kevin holds an MBA in finance from Georgia State University and a Bachelors in Chemical Engineering from the Georgia Institute of Technology. Finance Professor | Pepperdine Graziadio Business School Craig R. Everett is a finance professor at the Pepperdine Graziadio Business School. a Software as a Service company.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59