Knowledge and Training for Financial Decision Making!

NEWSLETTER of October 5, 2018

 

The following content has been added at finexpert:


finexpert seminars
Excel-based
financial modeling training


FINANZ- UND LIQUIDITÄTSPLANUNG  >more
15.01.2019 (F) | 21.05.2019 (M) | 24.09.2019 (F) in Munich (M) and Frankfurt (F)

DCF-UNTERNEHMENSBEWERTUNG  >more
16.01.2019 (F) | 22.05.2019 (M) | 25.09.2019 (F) in Munich (M) and Frankfurt (F)

MERGER-MODELLIERUNG >more
17.01.2019 (F) | 23.05.2019 (M) | 26.09.2019 (F) in Munich (M) and Frankfurt (F)

LBO-STRUKTURIERUNG >more
18.01.2019 (F) | 24.05.2019 (M) | 27.09.2019 (F) in Munich (M) and Frankfurt (F)


Tutorials
QoD12

Question of doubt in corporate valuation QoD#12: Shall I use nominal or effective tax rates/tax payments in DCF valuation? (Bernhard Schwetzler)

This video analyses tax loss carryforwards (TLC) as an important reason for differences between effective and nominal tax rates and tax payments. Several ways to incorporate TLCs into corporate valuation are discussed.
(October 5, 2018). >more


Studies > Performance

Strategy&

EINEN GANG HOCHSCHALTEN: WIE BANKEN DEN WETTBEWERB IM FIRMENKUNDENGESCHÄFT MEISTERN

Corporate Banking continues to be lucrative for banks in Germany: with an average return on equity of 10%, Corporate Banking made an important contribution to the profitability of banks in Germany last year. In 2017, the institutions in Germany generated income of around EUR 20 billion in the corporate customer segment. Of this, 66% was attributable to traditional lending business and 24% to cash management and trade finance products. The remaining 10% was distributed between investment banking services and financial markets products. >more

Studies > Performance

PwC

GLOBAL TOP 100 COMPANIES BY MARKET CAPITALISATION: 2018 UPDATE

In this report PwC has ranked the top 100 global companies by market capitalisation and compared how the list has evolved from March 2009 to March 2018. The report identifies the risers and the fallers, looks at sector dynamics and provides a view on how the global landscape has changed. >more

Studies > Alternative Investments

Ernst & Young

START-UP-BAROMETER EUROPA: OKTOBER 2018

Never before have European start-ups received so much fresh capital in the first half of the year as this year: inflows of funds rose by 27 percent to 10.2 billion euros, while the number of financing rounds rose by 19 percent to 1,995. >more

Studies > Alternative Investments

PwC

START-UP-STUDIE 2018

PwC has interviewed 1,000 founders in Germany about how satisfied they are with their location, what challenges they face, and how they finance themselves. You can find answers to these and many more questions in this report! >more

Studies > Alternative Investments

Debevoise & Plimpton

THE PRIVATE EQUITY REPORT: FALL 2018 SPECIAL TAX ISSUE

The enactment of the Tax Cuts and Jobs Act (TCJA) left little untouched in the world of private equity, and it will be some time before its effects are fully known. This issue of the Private Equity Report takes a close look at the topics that should be at the top of firm agendas. >more


Research Papers > Corporate Finance

BANK INTERVENTIONS AND TRADE CREDIT: EVIDENCE FROM DEBT COVENANT VIOLATIONS

Zilong Zhang
2018
This study examines the consequences of conflicts between creditors. Using the setting of debt covenant violations, I employ a regression discontinuity design to identify the effect of bank interventions on their borrowers' trade credit. The results show that trade credit experiences a substantial decline when banks intervene in the borrowing firm following covenant violations. The decline is mitigated by the presence of dependent suppliers and exacerbated by banks' incentives to exercise control rights. Such externalities are reflected in the loan contract design. Borrowing firms sign less restrictive loan contracts when they rely more on trade credit or trade creditors. >more

Research Papers  > M&A

INEFFICIENCIES AND EXTERNALITIES FROM OPPORTUNISTIC ACQUIRERS

Di Li, Lucian A. Taylor, and Wenyu Wang
2017
If opportunistic acquirers can buy targets using overvalued shares, then there is an inefficiency in the merger and acquisition (M&A) market: The most overvalued rather than the highest-synergy bidder may buy the target. We quantify this inefficiency using a structural estimation approach. We find that the M&A market allocates resources efficiently on average. Opportunistic bidders crowd out high-synergy bidders in only 7% of transactions, resulting in an average synergy loss equal to 9% of the target's value in these inefficient deals. The implied average loss across all deals is 0.63%. Although the inefficiency is small on average, it is large for certain deals, and it is larger when misvaluation is more likely. Even when opportunistic bidders lose the contest, they drive up prices, imposing a large negative externality on the winning synergistic bidders. >more