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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. The key questions that corporate finance teams answer also vary.

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Watts Water Technologies Acquires Bradley, Expects EBITDA Margin Accretion By 2027

Benzinga

The transaction value comes to around $268 million after adjusting for the estimated net present value of expected tax benefits of about $35 million. Watts Water Technologies Inc (NYSE: WTS ) penned a deal to acquire Bradley Corporation for $303 million.

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What Is Capital Budgeting?

Andrew Stolz

The net present value of an asset (NPV). Calculating net present value or discounted cash flows helps the firm know exactly how much excess return the future cash outflows or inflows used or generated from an asset/ project is worth now. What Impacts Capital Budgeting? The internal rate of return (IRR).

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ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? Do ESG programs impact firm value?

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Modeling Managers as EPS Maximizers

Reynolds Holding

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We can broadly classify firms’ corporate behaviors into two categories: growth and value firms. Growth firms will issue equity to pay for acquisitions; value firms won’t.

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Issues faced when valuing a declining company

Andrew Stolz

Estimate Terminal Value – Terminal Value is then estimated either by using a terminal exit multiple (usually an EBITDA multiple) or with a Terminal Growth Rate ( Gordon Growth Method). This action will cause fluctuations in the overall value of equity and debt ratio. Conclusion.

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Do Hostile Takeover Threats Matter?

Reynolds Holding

First, a conflict between equity and debt claimants may arise when stockholders expropriate the wealth of debtholders through risky investments. Second, managers acting on behalf of shareholders might reject projects with positive net present values if they feel that most of gains will flow to debtholders.