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jerryking : corporate_finance   8

From Andreessen, a Lesson in Corporate Finance -

In a series of tweets on Thursday, Mr. Andreessen offered a framework for thinking about technology valuations — relying on metrics that hard-nosed financiers tend not to consider.

3/Value of company X to acquirer Y often = Potential impact to acquirer Y's business -- which has a lot more to do with Y than X.

4/For example, in product businesses, you'll often hear term "attach rate" -- acquirer Y can attach company X's product to Y's sales engine.

5/Ex: I sell $20B of servers/year; I buy storage company X doing $100M revenue/year; & I can attach X's product to 20% of my server sales.

6/Ex cont'd: I can generate new $20B*20% = $4B/year of storage sales attached to my server business. X's standalone revenue is irrelevant.

7/Ex cont'd: So I can pay up for storage company X based on its projected impact on MY business, way beyond X's independent valuation.
Marc_Andreessen  Andreessen_Horowitz  corporate_finance  start_ups  valuations  standalone  frameworks  software  mergers_&_acquisitions  M&A 
june 2014 by jerryking
Idea: Private equity
Jun 22nd 2009 | The Economist | Anonymous
private_equity  finance  corporate_finance 
july 2009 by jerryking
Why Capital Structure Matters -
APRIL 21, 2009| Wall Street Journal | by MICHAEL MILKEN

The optimal capital structure evolves constantly, and successful
corporate leaders must constantly consider six factors -- the company
and its management, industry dynamics, the state of capital markets, the
economy, government regulation and social trends. When these six
factors indicate rising business risk, even a dollar of debt may be too
much for some companies.
corporate_finance  capital_structure  Michael_Milken  debt  equity  capital_markets 
april 2009 by jerryking
Paul Wilmott's Financial Magazine -
September 2008 Issue | | by Bryant Urstadt

Financial whiz Paul Wilmott edits the most influential magazine you've
never heard of. He's the author of a three-volume, 1,500-page anchor of a
book called Paul Wilmott on Quantitative Finance. The latest edition
lists for $295. He has written two other books and edited about 10 more,
all of which are attempts to explain the high-level math underlying the
derivatives that have dominated Wall Street in the past decade.
quants  magazines  Nassim_Taleb  finance  corporate_finance 
april 2009 by jerryking
While markets have dropped, cost of capital has not
Monday, April 06, 2009 | teh Globe & Mail | by Jiri Maly and Timothy Koller
McKinsey  corporate_finance  ROI 
april 2009 by jerryking

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