By Stefan Larsen Initially posted on the BSPEC blog In the late 1970s and early 1980s there was a dramatic increase in private equity activity in the US when pension funds like CalPERS began to invest heavily in them following the clarification of the “prudent man” rule by the Department of Labor,
A Lesson in Mergers & Acquisitions Theory Step back for a second and forget all of the accretion/dilution, tax implications and purchase price allocation jargon that goes into mergers and acquisitions and read this to understand the basics of mergers and acquisitions. A firm buys another firm. There are no synergies and
By Carla Costa and Camilla Cameroni Initially posted on the BSPEC blog Introduction Founded in February 1999 by Javier Pérez-Tenessa de Block and James Hare, two young marketing professionals, the online travel agency eDreams took up rapidly. The idea was not original, but they were positioning their venture differently from the others, offering
By Christopher Khoury and Eric Peghini Initially posted on the BSPEC blog Investors allocate capital with Private Equity Firms in order generate a high rate of return on their invested capital. However, when there are several investors and a separate manager, how much of the profits from investments are investors entitled to?
By Davide Martellozzo, Simone Bertani and Leonardo Astegiano Initially posted on the BSPEC blog Introduction to CLOs Collateralized Loan Obligations (henceforth, CLOs) have become increasingly popular in the post-crisis era because of some intrinsic features such as strong credit performance and appealing risk-return profile, making them an attractive asset class to the eye of
The luxury goods industry is a core industry within Consumer & Retail. Depending on its definition, specifically whether or not it includes luxury cars and hospitality, the market size of the luxury goods industry ranges from $200 billion to $1.2 trillion. We will focus on the core luxury goods industry
In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +
We will explain the most important part of spreading comps for investment bankers in this post. The brunt of conducting comparable companies analysis is to calculate the appropriate enterprise value, which will have certain components which are "live" and certain components that are the latest historical financial statement data. So to