Remove Capital Structure Remove Equity Remove Marketability
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Executive Stock Options and Systemic Risk

Harvard Corporate Governance

nancial markets, but also ties their health to that of other ?nancial We do so by focusing on bank executives’ equity portfolio (i.e., stock and option) “vega,” which captures the sensitivity of their equity portfolio’s value to their firm’s stock return volatility. Wang (discussed on the Forum here ). Banks’ role in ?nancial

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What Is Optimal Capital Structure?

Andrew Stolz

Definition of Optimal Capital Structure. The optimal capital structure of a firm is the right combination of equity and debt financing. It allows the firm to have a minimum cost of capital while having the maximum market value. The lesser the cost of capital, the more the market value of the company.

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M&A Deal Terms: Average Capital Structure

Exit Strategy

The following chart from GF Data shows the average capital structure over the past 5 years for middle market business acquisitions. Over that time equity contributions have varied only slightly over that time, in the range of 46% to 49%. Overall there was a slight rise during COVID, but nothing major.

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Corporate Finance Jobs: Cozy Careers, But Bad “Plan B” Options

Brian DeChesare

Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. What Are Corporate Finance Jobs? not banks or investment firms).

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Finding the Balance in Your Optimal Capital Structure

Equilest

Understanding your company’s capital structure is essential for maximizing its value and ensuring long-term stability. 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. Why capital structure matters for business performance.

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Equity Incentives: Best Practices for Startup Founders

Equidam

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.

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A Private Equity Tactic to Consider for Your Family Business

Auto Dealer Valuation Insights

A few weeks ago, we observed private equity investors learning a lesson about liquidity risk, which family shareholders have always known. A couple of weeks ago, the Wall Street Journal noted that — amid a sluggish M&A market — PE-backed companies were increasingly turning to… Source

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