Musings on Markets

OCTOBER 12, 2023

The effect of impact investing in the inclusionary and exclusionary paths is through the stock price , with the buying (selling) in inclusionary (exclusionary) investing pushing stock prices up (down), which, in turn, decreases (increases) the costs of equity and capital at these firms. in the 1998-2010 time period to 5.95

Market Capitalization 103

Market Capitalization Enterprise Value Start-ups Marketability 103

Brian DeChesare

MAY 4, 2022

15% to 30%) or it starts growing revenue more quickly (20-30% rather than 10-20%) or, better yet, both. If you follow these steps and start from a reasonable template, it might take you anywhere from a few hours up to a few days to build this type of model. Twitter Buyout, Part 3: Operating Cases/Scenarios.

EBITDA 111

EBITDA Start-ups Finance Equity 111

Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Musings on Markets

MAY 20, 2022

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.

Price to Book 102

Price to Book Dividends Beta Equity 102

Value Scout

DECEMBER 1, 2022

Well, let’s talk about some other facts: studies consistently show that a company will typically make up over 80% of an entrepreneur’s net worth. Related: Grow your enterprise value. The Value Engineering Playbook. Of course, it all starts with knowing the Current Market Value.

Start-ups 52

Start-ups Enterprise Value Marketability 52

Lighter Capital

DECEMBER 22, 2023

Short-term financing (12 months or less), which includes merchant cash advances (MCA) and merchant financing, often attracts startup founders looking for lower capital costs and quick access to cash — but those benefits can fade quickly if the loan terms don’t line up with what the business needs. QUESTION 1: What am I using the loan for?

Finance 59

Finance Start-ups Debt Financing B2B 59

Musings on Markets

JUNE 23, 2023

I will start this post with a couple of confessions. The first is that my portfolio has held up well this year, in a market that has been top-heavy and tech-driven, and one big reason is that it contains both NVIDIA and Microsoft, two companies that have benefited from the AI story. Sustained Profitability, with Cycles!

Start-ups 103

Start-ups Marketability Market Capitalization Technology 103

Brian DeChesare

OCTOBER 12, 2022

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. That said, much of it is better than the junk found on generic websites about how to start a hedge fund. How Does It Work? Talent at investing, execution, AND sales.

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Valutico

DECEMBER 15, 2022

Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. Pharmacies are valued at 0.8x – 1.2x

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. Pharmacies are valued at 0.8x – 1.2x

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Benzinga

NOVEMBER 12, 2024

Upon the closing of the Merger, it is expected that pre-Merger Verde stockholders will own approximately 95% of the combined company and pre-Merger Nxu stockholders will own approximately 5% of the combined company, in each case, on a fully-diluted and as-converted basis, and assuming Nxu's aggregate enterprise value is approximately $16.2

Enterprise Value 40

Enterprise Value Start-ups Technology Marketability 40

Musings on Markets

JULY 22, 2021

Zomato, an Indian online food-delivery company, was opened up to public market investors on July 14, 2021, and its market debut is being watched for clues by a number of other online ventures in India, waiting in the wings to go public. The Zomato IPO clocks in at 420 pages , much of it designed to bore readers into submission.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Brian DeChesare

JULY 31, 2024

But the real question is this: If you accept an industrials private equity job, will you end up more like Andrew Carnegie or Henry Phipps, or will your career trajectory resemble a distressed tire manufacturing company that later declared bankruptcy? Assume a Purchase Enterprise Value of $2.6 billion with Debt of $2.1

Equity 66

Equity Private Equity Firm EBITDA Start-ups 66

Global Finance

JUNE 4, 2024

Once those targets materialize, and the CFO and the CEO start to make approaches, then we’ll come in and serve them on the due diligence-related activities to confirm value and the transformation work. We then help them integrate and achieve their value-capture and transformation activity goals. Can you help me?

Private Equity Firm 59

Private Equity Firm Start-ups Finance Equity 59

Brian DeChesare

JUNE 1, 2022

But over time, trends like market liberalization, deregulation, the shift to renewables, and the ESG religion “movement” have shaken up a sleepy sector. We’ll get into these fun developments, but I want to start with the basic definitions: Power & Utilities Investment Banking Defined.

Banking 98

Banking Equity Book Value Capital Structure 98

Lighter Capital

JANUARY 9, 2024

For example, if you're spending too much on sales and marketing, you run the risk of taking too long to pay back your customer acquisition costs, and that can eat up your startup's cash runway. SaaS Benchmarks Report Get valuable insights from SaaS industry benchmarks to develop strategies that maximize your enterprise value.

Start-ups 52

Start-ups Marketability Enterprise Value EBITDA 52

RNC

JULY 13, 2023

This approach utilizes valuation multiples, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or enterprise value-to-EBITDA (EV/EBITDA) ratio, to estimate the value of the business. It provides insights into the market perception of similar businesses and helps establish a fair valuation.

Business Valuation 52

Business Valuation Intangible Assets Fair Market Value EBITDA 52

Benzinga

JUNE 26, 2024

per share in cash net of assumed liabilities and estimated transaction costs for an approximate total enterprise value of $45 million. "We As part of the merger consideration for Agile, Insud has agreed to make available a line of credit of up to $8,000,000, (the "Bridge Loan") secured by the Company's intellectual property.

Enterprise Value 40

Enterprise Value Start-ups Marketability 40

Benzinga

NOVEMBER 22, 2022

Strategic Manufacturing Partnership with Summit Group Already in Place and at Start of Production. Estimated Post-Transaction Enterprise Value of $573 Million with up to $274 Million in Net Cash to Fund Growth Assuming No Redemptions by CIIG II stockholders; No Minimum Cash Condition. Transaction Overview.

Enterprise Value 40

Enterprise Value Start-ups Marketability Technology 40

Brian DeChesare

OCTOBER 18, 2023

so you may look up stats on recent issuances and share them with the lead team – but you are not heavily involved in the process. On average, you might work from 7 AM to 7 PM, so you start earlier but also finish much earlier. or debt offerings (investment-grade or high-yield bonds).

Banking 59

Banking Marketability Start-ups Equity 59

Musings on Markets

JANUARY 6, 2023

In my last post, I talked about the ritual that I go through every year ahead of my teaching each spring, and in this one, I will start on the first of a series of posts that I make at the start of each year, where I look at data, both macro and company-level. That is not true!

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Audit Board

MARCH 7, 2023

Selecting ESG frameworks and ratings that align with the metrics that matter to your business can be the right starting point for many businesses. How to Choose the Right ESG Frameworks and Ratings for Your Organization Once you’re up to speed on the basics of ESG frameworks and how companies use them to guide reporting.

Enterprise Value 52

Enterprise Value Start-ups Finance Marketability 52

Valutico

MAY 6, 2024

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

Discounted Cash Flow 52

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

Musings on Markets

FEBRUARY 27, 2023

That may reflect the concern that once a person or entity starts borrowing to fund its needs, it is easy to overuse debt, and risk its wellbeing in the process. In fact, that may explain why firms that trade at low EV to EBITDA multiples are more likely to become targets in leveraged buyouts (LBOs) or leveraged recapitalizations.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Audit Board

MARCH 15, 2023

We believe integrations are critical to unlocking greater enterprise value in digital transformation, which is very relevant to any audit, risk, and compliance program. Or do you want to create transparency and collaboration to manage risk across your business in a central, accessible manner? Integration Opportunities Are Everywhere!

Compliance 52

Compliance Start-ups Enterprise Value 52

Musings on Markets

MAY 7, 2023

In this post, I will begin by looking at how to value banks and follow up with an examination of investor views of banking have changed, by looking at pricing, before examining divergences in how banks are priced in the market today.

Banking 82

Banking Price to Book Dividends Book Value 82

Brian DeChesare

JANUARY 19, 2022

We’ll discuss these competing views of the group and go into details on everything else, but let’s start with the basic definitions: FSG Investment Banking: What the Financial Sponsors Group Does. Verticals within the Financial Sponsors Group. So, I’ll refer you to the existing coverage if you want to learn more about these firms.

Private Equity Firm 94

Private Equity Firm Banking Equity Finance 94

Lighter Capital

MAY 1, 2024

SaaS Benchmarks Report Get valuable insights from SaaS industry benchmarks to develop strategies that maximize your enterprise value. Enter new markets to scale revenue If your SaaS startup is doing well in one market, then expanding across international borders may open up new opportunities to grow ARR and increase your growth rate.

Marketability 52

Marketability Finance Compliance Start-ups 52

Brian DeChesare

SEPTEMBER 20, 2023

A: Because you are passionate about working with startups, helping them grow, and finding promising new companies – and you prefer that to starting your own company or executing deals. So, the IPO market has largely been closed, but there are some signs that it’s now opening up with recent deals like ARM and Instacart.

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Class VI Partner

JULY 28, 2021

Start with this exit checklist. Discounted Cash Flow Value Discounted Cash Flow Value refers to the calculation of a company’s Enterprise Value on the basis of its ability to generate free cash flow over time. Exit Checklist. Want to get a sense for what it takes to sell your company? GET THE CHECKLIST.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Brian DeChesare

JULY 5, 2023

These tables come up in online discussions/arguments about ranking the top investment banks , but people often take them too seriously. To set up the data for these claims, IB Analysts often spend hours “cutting the data” to make their bank look better. These tables exist so that banks can state in their pitch books : “Look!

Banking 52

Banking Marketability Equity Start-ups 52

M&A Leadership Council

AUGUST 30, 2021

As a result, disagreement is inevitable, and the seller’s willingness and ability to effectively support a TSA often starts low at closing and tapers off quickly from there. One recent client, an experienced divestor, summed up their recent TSA experience this way. Optimize separation and transition costs.

Start-ups 52

Start-ups Enterprise Value Mergers & Acquisitions Technology 52

Brian DeChesare

APRIL 12, 2023

ACs sometimes come up when you apply for off-cycle internships , but it depends on your timing and how many others apply at the same time. look up a few recent deals), especially if you only have 2-3 ACs rather than 10 or 15. OK, But Why Do Investment Banking Assessment Centers Exist? What Happens After the Assessment Center?

Banking 64

Banking Equity Start-ups Enterprise Value 64

Value Scout

NOVEMBER 1, 2022

According to a survey conducted by the Exit Planning Institute , “only 20 to 30% of businesses that go to market sell; leaving up to 80% of those without solid options to harvest their wealth and ensure economic continuity into the next generation.” To be successful in business means that do not believe in winging it.

Start-ups 52

Start-ups Enterprise Value Marketability 52

RNC

OCTOBER 23, 2024

Share valuation in M&A offers a crucial starting point for discussions. To apply DCF, you’ll need to forecast the company’s free cash flows for the future, discount them using the company’s weighted average cost of capital (WACC), and sum them up to determine the present value. Compare valuation ratios (e.g.,

Precedent Transaction Analysis 40

Precedent Transaction Analysis Weighted Average Cost of Capital Price to Earnings Comparable Company Analysis 40

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

FE International

DECEMBER 31, 2021

At FE International we value and broker the sale of internet businesses with a wide range of monetization strategies (e.g. up to >6x (more on that later) and seen more than a few interesting valuations devised by buyers! billion up to $6.8 At the time of writing, Facebook’s enterprise value is $527 billion.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52