Skip to main content

Posts

Emerald Style of Referencing

You should cite publications in the text: (Adams, 2006) using the first named author's name or (Adams and Brown, 2006) citing both names of two, and (Adams et al., 2006), when there are three or more authors. At the end of the paper a reference list in alphabetical order should be supplied: For books : Surname, Initials (year), Title of Book , Publisher, Place of publication. e.g. Harrow, R. (2005), No Place to Hide , Simon & Schuster, New York, NY. For book chapters: Surname, Initials (year), "Chapter title", Editor's Surname, Initials (Ed.), Title of Book , Publisher, Place of publication, pages. e.g. Calabrese, F.A. (2005), "The early pathways: theory to practice – a continuum", in Stankosky, M. (Ed.), Creating the Discipline of Knowledge Management , Elsevier, New York, NY, pp. 15-20. For journals: Surname, Initials (year), "Title of article", Journal Name , volume, number, pages. e.g. Capizzi, M.T. and Ferguson, R. (2005), ...
Read more

Valuing LBOs

Valuing LBOs . A LBO can be evaluated from the perspective of common equity investors or of all investors and lenders . LBOs make sense from viewpoint of investors and lenders if present value of free cash flows to the firm is greater than or equal to the total investment consisting of debt and common and preferred equity . However, a LBO can make sense to common equity investors but not to other investors and lenders.   The market value of debt and preferred stock held before the transaction may decline due to a perceived reduction in the firm’s ability to - Repay such debt as the firm assumes substantial amounts of new debt and to - Pay interest and dividends on a timely basis. Valuing LBOs: Variable Risk Method Adjust for the varying level of risk as the firm’s total debt is repaid. . Step 1: Project annual cash flows until target D/E achieved . Step 2: Project debt-to-equity ratios . Step 3: Calculate terminal value . Step 4: Adjust discount rate to reflect changing risk . St...
Read more

Private Equity - Leverage Buyouts

What is Private Equity? Private equity is an asset class that has evolved substantially in the last couple of decades.   It is an alternative investment strategy that involves investing in privately held companies.   The key feature is the private nature of the securities purchased.   Investments in private equity are illiquid. Investors in this marketplace must be prepared to invest for the long-haul; investment horizons may be as long as 5 to 10 years.  Private Equity Partnership Structure The predominant organization form of private equity investing is the limited partnership structure.   Limited partnership consists of limited partners (LP) and general partners (GP).   The LPs of the partnership are the investors, i.e., the main providers of capital.   These are typically wealthy individuals, endowments, pension funds, and other institutional investors. The GP of the partnership are responsible for the day to day management of the partners...
Read more