Technicals _ Complete Technical Analysis
Technicals
and _
Business
Complete
Concepts
Technical
Study
Analysis
Technicals
Guide.pdf
and _
Business
Complete
Concepts
Technical
Study
Analysis
Guide.pdf
and Business Concepts Study Guide.pdf
Technicals | Complete Technical
Analysis and Business Concepts Study
Guide
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Technicals _ Complete Technical Analysis
Technicals
and _
Business
Complete
Concepts
Technical
Study
Analysis
Technicals
Guide.pdf
and _
Business
Complete
Concepts
Technical
Study
Analysis
Guide.pdf
and Business Concepts Study Guide.pdf
,Technicals.pdf Technicals.pdf Technicals.pdf
Terms in this set (57)
What makes a good LBO candidate? o Mature industry: Low multiple relative to other industries
o Minimal current debt / high cash flow generation
o Strong management team
o Low working capital requirement
o Low future capex requirement
o Other: Exit opps, strong market position, possibility of selling non-core
assets
If you can only ask three questions to evaluate an o EBITDA/FCFF: FCFF superior to EBITDA but EBITDA can apply valuation
investment, what would they be? ratio
o Industry/Business Model: What does the company do? How does it make
money? This is also to determine valuation metrics
o Revenue: To assess margins
o Other: Growth / Growth Opportunities, Management Team, Capital
Structure (but use EBITDA to avoid capital structure need)
Technicals.pdf Technicals.pdf Technicals.pdf
,Technicals.pdf Technicals.pdf Technicals.pdf
What three questions would you ask a CEO of a o Financial history (revenue growth, net margins, capex)
company you were looking to invest in? o Competitive landscape / industry outlook
o Business plan / growth trajectory / risks
Technicals.pdf Technicals.pdf Technicals.pdf
, Technicals.pdf Technicals.pdf Technicals.pdf
How would you decide what amount of leverage to o Interest tax shield (need taxable income) but need to consider distress
use in building a company's capital structure? and agency costs + taxes (MM). There is a trade off theory balance
between benefits (tax benefit), bk costs (direct like legal, financial and
indirect loss of investment opps, important team members) and agency
costs (conflict of interest costs like over or underinvestment, legal for
covenants)
o Look to industry comparables for optimal capital structure
o Determine goals of the debt policy (e.g., flexibility, maintaining credit
rating, etc.)
Technicals.pdf Technicals.pdf Technicals.pdf
Technicals
and _
Business
Complete
Concepts
Technical
Study
Analysis
Technicals
Guide.pdf
and _
Business
Complete
Concepts
Technical
Study
Analysis
Guide.pdf
and Business Concepts Study Guide.pdf
Technicals | Complete Technical
Analysis and Business Concepts Study
Guide
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Technicals _ Complete Technical Analysis
Technicals
and _
Business
Complete
Concepts
Technical
Study
Analysis
Technicals
Guide.pdf
and _
Business
Complete
Concepts
Technical
Study
Analysis
Guide.pdf
and Business Concepts Study Guide.pdf
,Technicals.pdf Technicals.pdf Technicals.pdf
Terms in this set (57)
What makes a good LBO candidate? o Mature industry: Low multiple relative to other industries
o Minimal current debt / high cash flow generation
o Strong management team
o Low working capital requirement
o Low future capex requirement
o Other: Exit opps, strong market position, possibility of selling non-core
assets
If you can only ask three questions to evaluate an o EBITDA/FCFF: FCFF superior to EBITDA but EBITDA can apply valuation
investment, what would they be? ratio
o Industry/Business Model: What does the company do? How does it make
money? This is also to determine valuation metrics
o Revenue: To assess margins
o Other: Growth / Growth Opportunities, Management Team, Capital
Structure (but use EBITDA to avoid capital structure need)
Technicals.pdf Technicals.pdf Technicals.pdf
,Technicals.pdf Technicals.pdf Technicals.pdf
What three questions would you ask a CEO of a o Financial history (revenue growth, net margins, capex)
company you were looking to invest in? o Competitive landscape / industry outlook
o Business plan / growth trajectory / risks
Technicals.pdf Technicals.pdf Technicals.pdf
, Technicals.pdf Technicals.pdf Technicals.pdf
How would you decide what amount of leverage to o Interest tax shield (need taxable income) but need to consider distress
use in building a company's capital structure? and agency costs + taxes (MM). There is a trade off theory balance
between benefits (tax benefit), bk costs (direct like legal, financial and
indirect loss of investment opps, important team members) and agency
costs (conflict of interest costs like over or underinvestment, legal for
covenants)
o Look to industry comparables for optimal capital structure
o Determine goals of the debt policy (e.g., flexibility, maintaining credit
rating, etc.)
Technicals.pdf Technicals.pdf Technicals.pdf
