Trading News

ThinkMarkets Opens Forex Trading Services In Japan

Aussie-headquartered broker, ThinkMarkets, officially launched its forex trading services in Japan today. This comes after the global brand acquired a local forex company last year, securing a license from the Japanese financial regulator. Read on for the details. Major Forex Market Japan is one of the largest markets for retail forex trading. However, several local […]

FxPro Reduces Spreads By Up To 20%

Following an increase in market volatility, FxPro has revised its pricing structure to offer more competitive spreads on popular assets. The result is lower trading costs on hundreds of financial products. The broker has also extended trading hours on the USD/RUB and EUR/RUB pairs by six hours. Lower Fees Spreads on all major forex pairs, […]

An Overview of the Leveraged Buyout (LBO) Financial Model

A leveraged buyout (LBO) is a transaction where a financial sponsor purchases a company or specific asset with equity and substantial amounts of borrowed capital. The target company being acquired has its assets and cash flows used as leverage in the buyout to obtain and finance the deal. The LBO is a common transaction form […]

Can Bitcoin Protect You From Inflation?

In other articles, we’ve argued that bitcoin and cryptocurrency can have a place in a balanced portfolio. In other words, some is okay, but too much can venture into speculation. (How Much of a Portfolio Should Be in Cryptocurrency?) The main limitation is its high volatility and high correlation to other kinds of assets (riskier […]

Determining Company Value with Precedent Transactions

Precedent transactions is among the major three types of valuation methods used for companies, in addition to discounted cash flow (DCF) and company comparable analysis (“comps”). Precedent transactions modeling is predicated on the idea that a company can be valued by analyzing the selling prices of similar companies under similar purchasing conditions in the past. […]

The Effects of Restructuring on Valuation using DCF

Business executives may elect to undergo firm restructuring to change the operational structures of their companies for purposes of making it more profitable (e.g., lower tax burden) or better organized for its current needs. Or it can be done out of necessity due to a demerger, buyout, insolvency, or basic marketing needs. Restructuring is frequently […]

Valuing Synergy in the Mergers and Acquisitions Process

Synergy measures the degree to which two firms function more efficiently or more profitably relative to how they perform as individual entities. The idea behind synergy is one of the central purposes of completing a merger in the first place. If the two corporations aren’t more profitable or better off in some fashion together, what […]

Assessing the Value of Control in a Firm

The value of control in a firm represents the level of premium that might be expected to be paid if it were acquired in dollar terms. When a company is acquired for a majority share, the previous regime is very likely to forfeit its decision-making power, as it’s one of the central objectives in a […]

Reconciling the Gross Debt vs. Net Debt Approach to Valuation

In addition to the previous models of valuation we have covered, firm valuation can also be estimated using the debt type associated with the business – gross or net. Like all financial models, where assumptions are inherent within their foundation in order to produce results and estimations, gross and net debt make their own assumptions […]

M&A Analysis: Mergers and Acquisitions Transaction Hypothetical

In this article, we’ll go through a hypothetical M&A transaction to look at the basic components and how to analyze one (M&A analysis). M&A analysis is important as mergers, acquisitions, and business combinings are a big part of the financial world. Many financial professionals – investment bankers, private equity, hedge funds and traders (e.g., merger […]

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