Debt vs. Equity Financing: Pros and Cons for Companies
Reading Time: 6 minutesSpread the loveMost common options to companies to raise capital for diverse business needs are equity financing and debt financing. Often companies prefer to use a combination…
Secured vs. Unsecured Debt in Corporate Finance
Reading Time: 4 minutesSpread the love Introduction Borrowing money and promising to pay it back with some added interest is known as debt. Many households, as well as businesses and…
Impact of ESG(Environmental,Social,Governance) on company valuations
Reading Time: 3 minutesSpread the loveThe ESG factors are gaining significance in valuations of firms through investment banking. Though the term “ESG” made its first mainstream appearance in a 2004…
Exit Strategies in Mergers and Acquisitions and their valuation implications
Reading Time: 3 minutesSpread the loveMergers and acquisitions refer to intricate transactions requiring strategic planning in order to ensure that the outcome satisfies the overall goals of the parties interested.…
Applying DuPont Analysis in Valuation Models
Reading Time: 4 minutesSpread the loveIntroduction: The DuPont model is a very significant tool for the analysis of a financial evaluation of the organization. It is actually based on three…
Basics of an Leveraged Buyout (LBO) model and its importance in private equity
Reading Time: 6 minutesSpread the love Introduction Leveraged buyout (LBO) modeling is a mainstay in private equity (PE) transactions. This valuation model determines whether or not it would be possible…
Price-to-Book (P/B) Ratio and Its Relevance in IB
Reading Time: 4 minutesSpread the loveIntroduction: The price-to-book ratio is essential in understanding investment decisions because it helps one identify the potential investment opportunities and assess the firm’s financial condition…
Valuation Techniques: Comparable Company Analysis (Comps)
Reading Time: 4 minutesSpread the love VALUATION TECHNIQUES Valuation is a process of determining the present or future worth of any asset or company. The valuation technique, in turn, is…
VALUING STARTUPS
Reading Time: 3 minutesSpread the loveINTRODUCTION Valuing refers to the process of estimating the price at which a stock can be bought and sold in the current market place or…
Levered Vs. Unlevered Beta: What’s The Difference?
Reading Time: 4 minutesSpread the loveWhat is Beta in finance? What is levered and unlevered Beta? We should understand the risk attached before making any financial investment. Beta is one…
Capital Structure and Its Impact on Valuation
Reading Time: 5 minutesSpread the love INTRODUCTION Capital structure is a means through which a firm can finance its operating and growth activities by combining debt and equity. It affects…
WORKING CAPITAL MANAGEMENT IN DIFFERENT INDUSTRIES
Reading Time: 4 minutesSpread the loveIntroduction Working capital management is a business process that helps the companies use their current assets effectively and optimize their cash flow. It is thus…
Forecasting Revenue and Expenses in a Financial Model
Reading Time: 4 minutesSpread the loveA financial model is a structured representation of a company’s financial performance, typically created using Excel or specialized software. It is used to forecast future…
Leverage Ratios and Their Role in Investment Banking Valuations
Reading Time: 4 minutesSpread the love Leverage ratios typically measure how much of a company’s debt compares to some other item on the balance sheet (be it equity or total…
Equity Value vs. Enterprise Value in Valuation
Reading Time: 4 minutesSpread the loveEquity value and Enterprise value are both used in the valuation or sale of a business, but each provides a slightly different view of the…
Introduction to Ratio Analysis in Financial Modeling
Reading Time: 4 minutesSpread the loveWhat is Ratio Analysis? Ratio analysis is the analysis of the financial statements in conjunction with the interpretations of the financial results of any particular…
Sensitivity Analysis in Financial Models
Reading Time: 2 minutesSpread the love Accurate and informed financial decision-making is crucial for any business organization. Business analysts look at financial data to figure out how a company is…
IMPACT OF WORKING CAPITAL IN VALUATION
Reading Time: 3 minutesSpread the loveIntroduction Working capital is also known as net working capital, which is a difference between a company’s current assets and current liabilities. It helps to…
How to build a discounted cash flow (DCF) Model
Reading Time: 4 minutesSpread the love There are many tried and tested approaches to establishing the intrinsic value of a company or an investment based on its expected performance in…
Valuing intangible assets: A guide for investment bankers
Reading Time: 2 minutesSpread the loveFirst, we need to understand what is an intangible asset There are two types of assets- one is tangible and the other is intangible. Tangible…
The Role of Assumptions in Financial Models
Reading Time: 4 minutesSpread the loveLET’S FIRST UNDERSTAND WHAT A FINANCIAL MODEL IS- A financial model is a structured, mathematical representation of a company’s financial performance, used to forecast future…
Introduction to Financial Modeling in Investment Banking
Reading Time: 4 minutesSpread the love What is Financial Modeling? It’s a framework that calculates the potential impact of various scenarios of changes in the company’s capital structure, revenues, and…
Types of mergers: Vertical, Horizontal and Conglomerate
Reading Time: 2 minutesSpread the loveWhen two or more businesses combine to establish a single firm, it becomes a merger. Mergers have a great impact on companies, industries and even…
How to Structure M&A Deals: Asset Purchase vs. Stock Purchase
Reading Time: 3 minutesSpread the loveThis article will outline the format of M&A transactions and evaluate the advantages and disadvantages of various structures. Merger and acquisition: M&A, also known as…
The Role of Synergies in M&A: Financial and Operational benefits
Reading Time: 3 minutesSpread the loveTHE ROLE OF SYNERGIES IN M&A: FINANCIAL AND OPERATIONAL BENEFITS INTRODUCTION In mergers and acquisitions Synergies will be vital for the performance and value generation…
How Merger & Acquisition Affects Shareholders and Stock Prices
Reading Time: 5 minutesSpread the loveIntroduction Mergers and Acquisitions, or M&A, is the combination of two firms through a financial transaction such as a merger, acquisition, tender offer, or consolidation.…
Regulatory Considerations in M & A: Antitrust Laws and Approvals
Reading Time: 3 minutesSpread the loveMergers and Acquisitions (M&A) continues to be the most crucial way for business expansion and restructuring. However M & A is become increasingly tougher, specifically…
The role of sell-side firms in secondary offerings
Reading Time: 3 minutesSpread the loveSell-side of the financial industry is deals with the creation, promotion, and sale of stocks, bonds, foreign exchange, and other financial instruments. Sell-side individuals and…
How Buy-Side Analysts Make Investment Decisions
Reading Time: 3 minutesSpread the loveWho are Buy-Side Analysts? Buy-side analysts are professionals responsible for conducting direct research for investors. This analyst is the primary role for firms that invest…
The Merger & Acquisition (M&A) Process: From Initial Strategy to Deal Closing
Reading Time: 2 minutesSpread the loveA merger and acquisition is the process of combining or selling another business. In Mergers and Acquisitions there are two types of buyers: strategic and…
AN INTRODUCTION TO BUY-SIDE INVESTMENT BANK
Reading Time: 3 minutesSpread the loveThe financial market has two main parts: the buy side and the buy side. The buy side is the side of the financial market that…
UNDERSTANDING PREFFERED STOCK IN EQUITY FINANCE: RIGHTS AND BENEFIT
Reading Time: 3 minutesSpread the loveIntroduction: This article contains the briefing of equity finance, preferred stock, type, rights & benefits of preferred stock. In this article you will understand that…
A GUIDE TO MERGERS & ACQUISITIONS FOR BEGINNER
Reading Time: 3 minutesSpread the loveMergers & acquisitions are more than just buying and selling companies from each other. In a merger, two companies come together to become one. MergerA…
Women in Investment Banking
Reading Time: 2 minutesSpread the loveIn the banking world, numbers often speak louder than words. There is an invisible barrier that prevents many talented women from advancing further in the…