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NEWSLETTER of September 14, 2018

 

The following content has been added at finexpert:


finexpert Multiple Report

Value Trust | finexpert

finexpert Multiple Report 2018

The Multiple Report concentrates on market multiples of the German stock market (the forthcoming third market report will finally concentrate on industry betas and the Svensson curve). The multiple report gives a comprehensive overview over the market valuation of different indices of the German Prime All Share. It combines 5 different multiple definitions, 4 market indices, 15 industry indices, 3 aggregation methods and 2 different time dimensions (trailing vs. forward). Our data coverage starts in 2010 to ensure that data can be used for historical valuations and to exhibit time series trends. Detailed sector compositions for previous valuation data and further information on valuation as well as capital market issues are available at finexpert.info (Teaser). >more


Tutorials
QoD9

Question of doubt in corporate valuation QoD#9: Which models are able to include fading growth into terminal value calculation? (Part I) (Bernhard Schwetzler)

In QoD #8 we have seen that directly applying fade factors on growth rates yields flawed and inconsistent valuations. This video analyzes the case of a fading asset base (invested capital) combined with constant excess returns and shows how to implement this case into some standard valuation equations for terminal value caclulation.
(September 14, 2018). >more


Studies > Performance

KPMG

THE PULSE OF FINTECH – 2018

Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG brings you the pulse of fintech investment globally. This publication highlights key fintech deals, issues and challenges seen around the world, in addition to key trends and insights related to fintech in key regions, including the Americas, the US, Asia and Europe. >more

Studies > Corporate Finance

Deutsche Bank Research

NACH DER SOMMERPAUSE: US- UND EUROPÄISCHE UNTERNEHMENSANLEIHEN

Macro factors continue to play the main role in corporate bonds; fundamental data are of secondary importance. However, the macro environment has become increasingly complicated this year. At the beginning of 2018, when markets were still extremely relaxed, we felt that volatility would return and credit spreads would widen accordingly. In fact, the trend was different from what we had predicted, even though spreads are now roughly where we had expected them to be at that time. >more

Studies > Alternative Investments

Preqin

PREQIN SPECIAL REPORT: THE PRIVATE DEBT TOP 100

With the objective of providing greater insight into who the most influential players are in the private debt industry, Preqin is pleased to provide a comprehensive ranking for the first time of the top 100 GPs and LPs within the private debt asset class, taken from our online platform. >more

Studies > Alternative Investments

White & Case

BLOCKCHAIN AND REAL ESTATE: A GLOBAL REVOLUTION IN THE MAKING?

In 2008, bitcoin announced itself as the first blockchain application, introducing the world to distributed ledger technology — a secure and transparent peer-to-peer payment protocol. Fast-forward a decade and blockchain is transforming the way global business is done — across industries. This report highlights the potential to revolutionise the global real estate industry. >more


Research Papers > Corporate Finance

BIG DATA IN FINANCE AND THE GROWTH OF LARGE FIRMS

Juliane Begenau, Maryam Farboodi, and Laura Veldkamp
2018
One of the most important trends in modern macroeconomics is the shift from small firms to large firms. At the same time, financial markets have been transformed by advances in information technology. We explore the hypothesis that the use of big data in financial markets has lowered the cost of capital for large firms, relative to small ones, enabling large firms to grow larger. Large firms, with more economic activity and a longer firm history offer more data to process. As faster processors crunch ever more data – macro announcements, earnings statements, competitors' performance metrics, export demand, etc. – large firms become more valuable targets for this data analysis. Once processed, that data can better forecast firm value, reduce the risk of equity investment, and thus reduce the firm's cost of capital. As big data technology improves, large firms attract a more than proportional share of the data processing, enabling large firms to invest cheaply and grow larger. >more

Research Papers >     M & A

DO PRIVATE EQUITY FIRMS PAY FOR SYNERGIES?

Benjamin Hammer, Nils Janssen, Denis Schweizer, and Bernhard Schwetzler
2018
Stylized facts suggest that strategic acquirers can pay for synergies, while private equity (PE) firms cannot because of the missing operating fit with the portfolio company. However, if PE firms initiate buy-and-build strategies, there is potential for an operating fit between the portfolio firm and its add-on acquisitions. Thus, synergistic value could be priced in at entry. We analyze the pricing of 1,155 global PE buyouts and find strong support for a valuation effect from buy-and-build strategies. Our results indicate that PE sponsors pay a premium of up to 47% at entry when the portfolio company acquirers add-ons in the same industry within a two-year time window after the buyout. Consistent with bargaining power theory, the effect strengthens when the portfolio firm has acquisition experience, and when the PE sponsor faces pressure to invest because of unspent fund capital (referred to as “dry powder”) or deal competition. These findings remain robust after addressing alternative explanations, endogenous selection, and reverse causality. They have important implications for the literature on strategic versus financial bidders in takeovers. >more