Market Efficiency
Self-dealing Index
One of the critical concerns for VC funds is the issue of self-dealing. An index describes how this problem is addressed legally across different countries. Self-dealing, Tunneling, and […]
Archive
Category: [:en]მართვა და კაპიტალის განაწილება[:]
WACC, CoC, Structure
Credit Rating Determinants
When evaluating an organization, one of the important decisions concerns the target leverage, which affects the WACC (Weighted Average Cost of Capital) and consequently the valuation outcome (naturally, […]
WACC, CoC, Structure
Optimal Leverage Range
The optimal level of financial leverage is determined, on the one hand, by the amount of tax savings an organization receives by deducting interest expenses, and on the […]
WACC, CoC, Structure
Capital Structure & Value
Financial theory tells us that there is an optimal capital structure derived from tax savings and the risks of financial leverage, but it says little about how to […]
Mergers & Acquisitions
Value Destructive Accretive Acquisition
Managers often justify mergers and acquisitions by claiming that the operation is accretive, meaning that EPS (earnings per share) increases, and therefore shareholders should be satisfied. However, the […]
Mergers & Acquisitions
Architypes for Value-Creating Acquisition
According to McKinsey’s research (1999-2013, 1770 transactions), the combined value of the acquiring and acquired organizations increased by an average of 5.8% as a result of acquisitions. In […]
Growth
Value Drivers
Understanding what creates value and how it is created is critically important. A good format to grasp this is through a value creation tree diagram: First, let’s start […]