Wall Street Financier: Notes from High Altitude©
He who makes a beast out of himself gets rid of the pain of being a man.
An earn-out is a form of contingent consideration payable to the seller based on the performance of the target for a period of time after the closing of a M&A transaction. Earn-outs are typically structured as one or more payments made upon the achievement of certain specified milestones. Earnouts generally …
Finding mentors in life and profession is incumbent upon one that seeks to better himself. Like-minded people share a common bond. If you can find out what that is, then you have a match. It sounds easier than it actually is. For starters, there is the disparity in time value …
When I heard about the hacked Podesta and Powell personal emails, I became concerned and reevaluated what I already have in place or need to do to in order to better safeguard my communications. If you are not familiar with the method used to hack into Podesta’s personal Gmail account,… …
That’s a perennial question in finance, and I defer to one of the services I use, FactSet “…bankruptcy in and of itself is not costly if the value of the firm is efficiently transferred to the bondholders.” Of course, optimal capital structure is a ‘moving’ target. Latest FactSet release,Sept. 26, …
With a heated Presidential race on the way this year, the choice is between a populist (Donald Trump) and a career politician (Hillary Clinton). Regardless of who is going to win the race, the winning candidate must address the issues of over-regulation facing Wall Street firms and tax reform in… …
Jetcraft released its 10-year business aviation forecast Oct. 12th, 2016 Key points: 7,879 unit deliveries, representing $248 billion in revenues (based on 2015 pricing) through 2026 Gulfstream OEMs to secure the largest market share (30.6%) Largest 30% revenue market share for engines for PW&C, Rolls Royce into 2nd place with 25% …
In September 2016 Caesar’s Entertainment entered a final agreement for its bankruptcy exit. Creditors of the bankrupt operating unit would own almost 70 percent of the new company. In exchange for the much better offer, the junior bondholders would be required to drop any legal claims against Apollo and TPG, which they …
Recent reports on a Twitter (NYSE:TWTR) sale skim through the facts and misinterpret suitors . Why No one should buy Twitter (@Slate). Twitter is a unique media property with loyal users. The user base of Twitter is organic, limited. (very different than the Facebook platform). As far as demographics go, Twitter users …
There’s been some talk about Andreessen Horowitz returns lagging other prominent venture capitalists such as Sequoia, Benchmark and Founders Club. In response, Scott Kupor of A16Z published a rebuttal outlining valuation methods used in the industry. Kupor differentiates between the “marks” (quarterly snapshot of realized and unrealized gains ) from …
PE use borrowed funds to buy companies, so typically these investments are riskier than the public markets and are mostly illiquid. Private equity cash flows are typically described by the “J-Curve ”, with investments generally being made in years 1-5 (negative returns) and realizations generally occurring in years 4-11 (positive).… …
