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Reclaiming the Idea of Shareholder Value

Harvard Business

Corporate governance issues are constantly in the headlines. But discussions of corporate governance invariably miss the real problem: most public companies have extensive governance procedures but no governing objective. Activist investors challenge management strategies.

Cash Flow 121
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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

After the massive stimulus and more than doubling of new bank loans in 2009, the government attempted to stabilize credit growth, but the growth of the shadow banking system exploded instead. Total local government debt adds up to RMB17.9 trillion (nearly $3 trillion) according to the latest, likely understated, national audit.

Finance 73
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Navigating a Downturn: Strategies for Business Resilience

Tom Spencer

Businesses should adopt conservative financial management practices , such as effective cash flow monitoring, prudent budgeting, and building a large war chest of cash and other liquid assets. This has significantly reduced Apple’s financial risk of launching new products, even during periods of economic contraction.

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Earnings Cheating Season: Is Your Favorite Company Cooking the Books?

MishTalk

The key plank of the Ice Age theory was that this positive correlation would break down and that equities would de-rate in absolute and relative terms compared to government bonds thereby inverting the close positive correlation between bond and equity yields. Is there a growing divergence between net income and operating cash-flow?

Company 66
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Small and Young Businesses Are Especially Vulnerable to Extreme Weather

Harvard Business

In essence, the fortunate firms took on more debt, committing the business to a stream of cash flows and expenses far into the future to pay for their losses. Others were unable to borrow to replace lost assets and address other operating needs, compromising their earnings potential.

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Frameworks for the Case Interview (Part II: Mergers and Acquisitions Framework)

Tom Spencer

There are three main valuation methods you can use to estimate the value of the company: Discounted Cash Flow , Comparable Companies , and. Integration costs include costs incurred for integrating IT systems, operational processes, and organizational structure. Comparable Transactions. This will vary from country to country.

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SBA Acquisition Loans – A Win-Win-Win Especially for the Seller

Martinka Consulting

It’s much better for them to buy a larger business with systems, processes and a management team instead of an owner-operator business-and they can do so easier because of the SBA program. What this means is, investors get a government guaranteed rate of return of about 4%, which is higher than T-bills and similar.