Valuing the Employee Purchase of Employer Company Stock—Part II
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Preqin Special Report: Subscription Credit Facilities
PREQIN June 2019 SPECIAL REPORT: SUBSCRIPTION CREDIT FACILITIES PREQIN SPECIAL REPORT; SUBSCRIPTION CREDIT FACILITIES Contents 3 CEO’s Foreword 4 Subscription Credit Facility Usage in Private Capital 7 Subscription Lines of Credit and LP-GP Alignment: ILPA’s Recommendations - ILPA 8 Are Subscription Facilities Oversubscribed? - Fitch Ratings 10 Subscription Finance Market - McGuireWoods LLP Download the Data Pack All of the data presented in this report is available to download in Excel format: www.preqin.com/SCF19 As with all our reports, we welcome any feedback you may have. To get in touch, please email us at: [email protected] 2 CEO's Foreword Subscription credit facilities: angels or demons? A legitimate and valuable tool for managing liquidity and streamlining transactions in a competitive market, or a cynical ploy for massaging IRRs? The debate continues in private equity and wider private capital circles. As is often the case, historical perspective is helpful. Private capital operates in a dynamic and competitive environment, as GPs and LPs strive to achieve superior net returns, through good times and bad. Completing deals and generating the positive returns that LPs Mark O’Hare expect has never been more challenging than it is CEO, Preqin today, given the availability of capital and the appetite for attractive assets in the market. Innovation and answers: transparent data, combined with thoughtful dynamism have long been an integral aspect of the communication and debate. private capital industry’s arsenal of tools, comprised of alignment of interest; close attention to operational Preqin’s raison d’être is to support and serve the excellence and value add; over-allocation in order to alternative assets industry with the best available data. -
Real Options Valuation As a Way to More Accurately Estimate the Required Inputs to DCF
Northwestern University Kellogg Graduate School of Management Finance 924-A Professor Petersen Real Options Spring 2001 Valuation is at the foundation of almost all finance courses and the intellectual foundation of most valuation methods which we will examine is discounted cashflow. In Finance I you used DCF to value securities and in Finance II you used DCF to value projects. The valuation approach in Futures and Options appeared to be different, but was conceptually very similar. This course is meant to expand your knowledge of valuation – both the intuition of how it should be done as well as the practice of how it is done. Understanding when the two are the same and when they are not can be very valuable. Prerequisites: The prerequisite for this course is Finance II (441)/Turbo (440) and Futures and Options (465). Given the structure of the course, no auditors will be allowed. Course Readings: Course Packet for Finance 924 - Petersen Warning: This is a relatively new course. Thus you should expect that the content and organization of the course will be fluid and may change in real time. I reserve the right to add and alter the course materials during the term. I understand that this makes organization challenging. You need to keep on top of where we are and what requirements are coming. If you are ever unsure, ASK. I will keep you informed of the schedule via the course web page. You should check it each week to see what we will cover the next week and what assignments are due. -
Uva-F-1274 Methods of Valuation for Mergers And
Graduate School of Business Administration UVA-F-1274 University of Virginia METHODS OF VALUATION FOR MERGERS AND ACQUISITIONS This note addresses the methods used to value companies in a merger and acquisitions (M&A) setting. It provides a detailed description of the discounted cash flow (DCF) approach and reviews other methods of valuation, such as book value, liquidation value, replacement cost, market value, trading multiples of peer firms, and comparable transaction multiples. Discounted Cash Flow Method Overview The discounted cash flow approach in an M&A setting attempts to determine the value of the company (or ‘enterprise’) by computing the present value of cash flows over the life of the company.1 Since a corporation is assumed to have infinite life, the analysis is broken into two parts: a forecast period and a terminal value. In the forecast period, explicit forecasts of free cash flow must be developed that incorporate the economic benefits and costs of the transaction. Ideally, the forecast period should equate with the interval in which the firm enjoys a competitive advantage (i.e., the circumstances where expected returns exceed required returns.) For most circumstances a forecast period of five or ten years is used. The value of the company derived from free cash flows arising after the forecast period is captured by a terminal value. Terminal value is estimated in the last year of the forecast period and capitalizes the present value of all future cash flows beyond the forecast period. The terminal region cash flows are projected under a steady state assumption that the firm enjoys no opportunities for abnormal growth or that expected returns equal required returns in this interval. -
2016-2017 MBA Courses for Finance Development Program Course Offerings and Descriptions
2016-2017 MBA Courses for Finance Development Program Course Offerings and Descriptions Preparing Financial Professionals for Success 1.0 About Training The Street: Training The Street (TTS) offers state-of-the-art, instructor-led courses in capital markets, financial modeling and corporate valuation. Founded in 1999, TTS is the world’s leading financial learning services company offering targeted and customized training courses to corporate and educational clients. TTS’s corporate clients include the world’s leading investment banks, consulting firms & Fortune 500 companies. We specialize in applied learning using practical examples and annotated guides. With more than 150 years of combined professional and teaching experience, TTS's instructors have worked across a broad spectrum of industries-from high-technology to retail-and across a wide range of financial disciplines-from investment banking, accounting, and financial research to global trade finance and credit risk management. Several of our instructors are Adjunct Professors at leading academic institutions. For more information on TTS, please visit www.trainingthestreet.com. Calendar of Courses Offered: 2016-2017 Finance Development Program 1) Excel Best Practices – Friday, August 19, 2016 (5:00 – 9:00pm), Koury 2) Introduction to Financial Modeling – Friday, September 16, 2016 (1:00pm – 5:00pm), Kenan 204 3) M&A Strategy and Corporate Valuation – Saturday, September 24, 2016 (9:00am – 5:00pm), McColl 2250 4) Anatomy of a Deal – Saturday, October 1, 2016 (10:00am – 4:00pm), McColl 2500 5) LBO Modeling – Tuesday, October 25, 2016 (4:30pm – 8:30pm), McColl 2500 6) Restructuring and Credit Analysis – Friday, November 11, 2016 (9:00am – 5:00pm), McColl 2600 7) Interview Preparation: Private Equity – Saturday, December 3, 2016 (9:00am – 11:30pm), McColl 2500 8) Interview Preparation: Finance – Saturday, December 3, 2016 (12:00pm – 3:30pm), McColl 2500 Detailed course descriptions are on the following pages. -
Unpacking Private Equity Characteristics and Implications by Asset Class
Unpacking Private Equity Characteristics and Implications by Asset Class www.mccombiegroup.com | +1 (786) 664-8340 Unpacking Private Equity: Characteristics & implications by asset class The term private equity is often treated as a catchall, used interchangeably to describe a broad variety of investments. Such loose use of the phrase fails to capture the range of nuanced business ownership strategies it refers to and risks branding an entire asset class with characteristics and implications that are typically relevant to only a particular sub-category. Recently, this has especially been the case given the outsized global attention placed on the leveraged buyout deals of Bain Capital, a private equity firm founded by Republican U.S. presidential candidate Mitt Romney. In this context, popular discourse has inappropriately attached the label of private equity to a general practice of debt-fueled corporate takeovers that disproportionately focus on cost cutting. In reality, however, private equity refers to an array of investment strategies each with a unique risk-return profile and differing core skillsets for success. This article is intended to help family office executives better understand the nuances of the various sub-categories of private equity. It seeks to draw high-level distinctions, serving as a practical guide for investors entering the private equity arena, be it directly or through a more curated fund structure. Ultimately by understanding the characteristics and implications of each asset class, the reader should be equipped to make an educated choice regarding the most relevant and appropriate strategy for their unique profile. From a technical perspective, private equity is nothing more than making investments into illiquid non-publicly traded companies— i.e. -
How Can Divesting Help Build Resilience and Drive Value Beyond the Crisis?
How can divesting help build resilience and drive value beyond the crisis? 2020 Global Corporate Divestment Study India About the study The EY Global Corporate Divestment Study is an annual survey of C-level executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. ► What is the impact of COVID-19 on strategic divestments? ► How will businesses use the funds raised from the divestment? The EY Global Corporate Divestment ► What will the impact of current crisis on divestment strategy? Study results are based on an online survey of 1,010 global corporate ► What are some of the key elements to maximize value from divestment? executives and 25 global activist investors pre-COVID (conducted between ► What will be the nature of buyers post COVID-19? November 2019 and January 2020), and an online survey of 300 corporate executives and 25 global activist investors following the onset of the crisis Author (conducted between April and May 2020). Seventy-five percent of Naveen Tiwari Produced in association with respondents are CEOs, CFOs or other C- Partner and Head, Carve-Out and Integration, EY LLP level executives. Page 2 2020 Global Corporate Divestment Study Debt repayment and raising capital are some of the key challenges triggered by COVID-19 Q Does the potential impact of COVID-19 pandemic on your business mean you will need to: ► The ongoing pandemic is having a Reduce debt through divestment significant impact on the finances of 67% most businesses. Raise capital 58% ► Many corporates indicate that raising Reshape portfolio for a post-crisis world funds through divestment can help 50% reduce debt levels. -
Bfm Sem – Vi Corporate Restructuring
BFM SEM – VI CORPORATE RESTRUCTURING Multiple Questions:- 1. _________ merger involves firm engaged in unrelated types of activities. a. Vertical b. Horizontal c. Conglomerate d. Demerger 2. When existing company is dissolved to form few new companies, it is called as ________ a. Sin off b. Split off c. Split up d. All of the above 3. __________means an acquirer takes over the control of the target company. a. Joint Venture b. Takeover c. Disinvestment d. Demerger 4. The ___________means changing the structure of an organization such as reducing the hierarchical levels. a. Financial Restructuring b. Organizational Restructuring c. Corporate Restructuring d. All of the above 5. ________parties work together or a single project for a finite period of time. a. Strategic Alliance b. Joint Venture c. Disinvestment d. Franchising 6. __________means the action of an organization or government selling or liquidating an asset or subsidiary. a. Merger b. Joint Venture c. Takeover d. Disinvestment 7. __________ is an arrangement whereby the assets of two or more companies come under the control of one company. a. Merger b. Buyout c. Joint Venture d. Demerger 8. ________may be defined as an arrangement where one party grants another party the right to use trade name. a. Alliance b. Franchising c. Slump sale d. Joint Venture 9. ________merger is a merger of two or more companies that compete in the same industry. a. Vertical b. Horizontal c. Co generic d. Conglomerate 10. ____________ helps a firm to grow and expand. a. Corporate Restructuring b. Merger c. Takeover d. Demerger 11. In _________, company distributes its shareholding in subsidiary to its shareholders thereby not changing the ownership pattern. -
Common Discounts Used in Valuations of Closely Held Businesses By: Joe Romagnoli, CPA/ABV, CVA, Partner
Common Discounts Used in Valuations of Closely Held Businesses By: Joe Romagnoli, CPA/ABV, CVA, Partner Whenever valuing a minority ownership, i.e. less than 50% ownership of a closely held business, it is necessary to include discounts to the final valuation to reflect the minority interest and lack of marketability. These discounts, typically used in fair market value calculations, reflect the negative effects of lack of control and inability to sell or liquidate the minority interest at will. An owner of a less than 5% interest, in any entity, usually will not maintain any substantial control over the organization; especially if another owner maintains a majority interest. Without control of the company, the minority owner cannot control wages, dividends, or other financial policies for the company. Minority interest discounts range from 20% to 40% and applications tend to lean towards 30% to 35%. Fair Market Value The fair market value method of valuing an entire interest are often based on comparisons of the market values of recent sales of entire entities or whole pieces of property. There are certain marketability differences between the fair market value of an entire entity and a partial interest in a thinly traded entity that lacks a regularly traded market. For example, an owner of a less than 5% interest in a publicly traded security can know at all times the market value of his or her holdings. They can sell that holding on virtually a moment’s notice and receive cash net of brokerage fees within several working days. Liquidating a less than 5% interest of a privately held entity, in comparison, would be a more costly and time consuming process than liquidating stock in publicly traded firms. -
CORPORATE FINANCE and VALUATION 24 - Hour Course
CORPORATE FINANCE AND VALUATION 24 - hour course Céline Vaessen Céline Vaessen is a General Advisor of the Belgian Federal Holding and Investment Company (SFPI-FPIM), managing the Belgian State shares in financial institutions which benefited from State aid. Previously, she worked as an investment banker at Credit Agricole - CIB. She has been lecturing at the Solvay Brussels School of Economics and Management for more than 10 years. Course Outline This course articulates the principles, tools and techniques to assess investment and financing decisions made by firms, in their intimate relationship with financial markets. Referring to the arbitrage principle in financial decision-making, the course starts with the key foundations of finance, the valuation principles in general, and the understanding of the requirement of return given a level of risk. The second part is devoted to the valuation of the various asset classes, projects and firms, including the arbitrage principle in financial decision-making, time value of money, interest rate management and bond portfolio management, project valuation, capital markets and the price of risk. Participants will be advised on reading material for each subject and will work on exercises for each theme to be covered in class in small groups. At the end of the course, Participants will be able to: - Value a share, a bond, a company, a project, … - Make a choice between different investment projects - Build the term structure of interest rates and make the difference between spot & forward interest rates - Assess risk and make the link with expected returns - Estimate the cost of capital for companies with different financial structures (wacc) - Discuss capital markets efficiency - Address the payout policy of a company Course Structure I. -
Sword Group 2014 Financial Report
Sword Group 2014 Financial Report 1,201 employees as at 31/12/2014 19 countries Revenue 2014: €117.1 million EBITDA: 16.1% CONTENTS 1 STATEMENT BY THE PERSONS IN CHARGE OF THE 2014 FINANCIAL REPORT P 3 2 INDEPENDENT AUDITOR P 3 3 DIRECTORS P 3 4 COMPANY INFORMATION P 3 5 KEY FINANCIAL INFORMATION P 4 6 GROUP ORGANISATION CHART P 5 7 OVERVIEW OF ACTIVITIES P 6 8 CORPORATE SOCIAL RESPONSIBILITY P 7 9 CORPORATE GOVERNANCE P 8 10 MANAGEMENT REPORT P 19 11 INDEPENDENT AUDITOR’S REPORT ON THE ANNUAL ACCOUNTS AS AT 31 DECEMBER 2014 P 43 12 ANNUAL ACCOUNTS AS AT 31 DECEMBER 2014 P 44 13 NOTES TO THE 2014 ANNUAL ACCOUNTS P 51 14 INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2014 P 62 15 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2014 P 63 16 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2014 P 70 17 CONTACTS P 125 Sword Group – Financial Report 2014 V19-03-2015 Page 2 1 STATEMENT BY THE PERSONS IN CHARGE OF THE 2014 FINANCIAL REPORT 2014 Pursuant to Article 3 (2) c) of the Law of 11 January 2008 on transparency requirements for information about issuers whose securities are admitted to trading on a regulated market, I declare that these financial statements have been prepared in accordance with applicable accounting standards and that the financial statements present fairly, to my knowledge, a true and fair view of the financial position as at 31 December 2014, financial performance and cash flows of the Company and a description of the principal risks and uncertainties the Company faces. -
Employee Stock Ownership Plan Vs. Management Buyout
The following information and opinions are provided courtesy of Wells Fargo Bank, N.A. Wealth Planning Update Employee stock ownership plan vs. management buyout MAY 2021 Key takeaways: Jeremy Miller • When considering the transition of your business, a sale to an Senior Business Transition Strategist employee stock ownership plan (ESOP) and a management Wells Fargo Bank, N. A. buyout (MBO) are two alternatives that allow the business to continue to be run by your existing employees. Joseph Gilbert • An ESOP allows all of the employees to have ownership in the Financial Advisor business and can include tax advantages. Wells Fargo Advisors • An MBO allows you to choose which key employees the business is sold to. What this may mean for you: • It is important to review the strengths and weaknesses of an ESOP and an MBO and see how they align with the facts and circumstances of your situation in order to determine if either transition alternative is the right fit for your business. Transitioning a business is a monumental step for a business owner. Therefore, it is important to understand your options to have confidence that the transition option you ultimately choose is right for you. As you evaluate your alternatives, two options that are commonly compared side by side are an ESOP and an MBO. Approximately 25% of business owners transition via an MBO, while nearly 5% transition via an ESOP.1 Although the numbers show a preference for an MBO, a thorough review of these two options should be undertaken to know which path is right for you and your business or if an alternate path may be appropriate. -
Firm Overview Capital Raising M&A Senior Leadership
FIRM OVERVIEW Bridgepoint Investment Banking is a market-leading boutique investment bank that serves clients over their corporate lifecycles by providing capital raising and M&A advisory services. Bridgepoint serves clients globally across the focus sectors below. Bridgepoint is the first impact investment bank, hyper-focused on making a positive impact on its people, clients, communities and the environment. Bridgepoint CAPITAL RAISING Office Locations SECTORS OF FOCUS • Recapitalization Industrials & • Ownership liquidity Transportation • Growth capital Healthcare • Refinancing • Acquisition financing Business & IT Services • Rescue finance • Leveraged finance Consumer & M&A WHY BRIDGEPOINT Retail • Sell-side M&A advisory INTEGRITY • Corporate divestitures DEAL EXPERTISE & EXPERIENCE Technology WALL STREET PROCESS • Buy-side M&A advisory LOCAL & ACCOUNTABLE • Management buyouts DEEP CONNECTIVITY TYPICAL CLIENT SIZE • Cross-border M&A TENACITY Enterprise values of FOCUS ON IMPACT $20 million to $500 million SENIOR LEADERSHIP Wm. Lee Merritt Gary Grote Nick Orr Matt Plooster Mike Anderson MD & General Managing Managing President & CEO Managing Counsel Director Director Director Natasha Subhash Bryan Wallace Chad Gardiner Alex Spanel Plooster Marineni Managing Director Associate Director COO Vice President bridgepointib.com In order to offer securities-related Investment Banking Services discussed herein, to include M&A and institutional capital raising, certain representatives of Bridgepoint Investment Banking are registered representatives