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NEWSLETTER of August 17, 2018

 

The following content has been added at finexpert:


Studies > M & A

CMS Hasche Sigle / FINANCE

M&A PANEL JUNI 2018

German companies remain keen to invest, with the German M&A market continuing to see more buying than selling. German corporates are also increasingly relying on their own staff, with external M&A advisors only being brought on board in half of the transactions at most. Those are the findings of the second 2018 survey of the M&A panel, which is polled three times a year by international commercial law firm CMS and FINANCE magazine. >more

Studies > Alternative Investments

KfW Research

GERMAN PRIVATE EQUITY BAROMETER: 2.QUARTAL 2018

The German Private Equity Barometer is based on a quarterly survey of the 200+ members of the German Private Equity and Venture Capital Association (Bundesverband Deutscher Kapital­beteiligungs­gesellschaften – BVK). The German Private Equity Barometer reports the business climate in the German private equity capital market. The responses provided by interviewees are weighted to reflect the volume of capital under management and the investment focus of all BVK members. >more

Studies > Performance

Bain & Company

AFTER THE EASY MONEY BOOM, STARK CHOICES FOR ASSET MANAGERS

Asset management has become an increasingly difficult business, driven by new structural trends incustomer behavior, regulation and technology. A collapse of the midtier, plain-vanilla, full-service model leaves asset managers with two basic strategic directions to pursue: Build the business to a large scale (for passive or active investment strategies), or develop a highly differentiated niche (active only). >more


Research Papers > Corporate Finance

THE RACE OF UNICORNS: STARTUP ACQUISITIONS BEFORE IPO TO SIGNAL COMPANY QUALITY

Xuelin Li
2018
The merger and acquisition activity of startups prior to IPO is a neglected but important phenomenon. On one hand, more startups end up being acquired than going public. On the other hand, successful startups engage in frequent M&As. This paper argues that good startups could signal their quality to IPO investors by taking over their inferior competitors. However, bad startups may resist selling because there is a chance to pool with good types in IPO when investors have confusions of firm qualities. By formalizing a race of unicorns with dynamics adverse selection, I characterize the equilibrium outcomes into three regions: IPO wave, M&A and waiting zone. >more

Research Papers  > Risk Management

CORPORATE HEDGING DURING THE FINANCIAL CRISIS

Paul Calluzzo, and Evan Dudley
2018
We study corporate hedging during the 2007-2008 financial crisis. We find that hedging programs are fragile. Firms whose lenders suffered losses on their mortgage portfolios were more likely to lose access to over-the-counter derivatives, and this effect was strongest among unrated and below investment grade firms. Affected firms responded by drawing down existing lines of credit, and saving more out of realized cash-flows. Terminations of hedging programs decreased firm value by 11% to 28% in unrated and below investment grade firms. These value effects were largest among firms that did not have alternative sources of liquidity to draw upon. >more