Newsletter

The “Small Business” Trap By Les Nemethy

Running a small business is arguably more difficult than running a large one. I have done both, and that has certainly been my experience.

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Control Premiums: How much is control worth? By Les Nemethy and Sergey Glekov

The majority of corporate acquisitions are acquisitions of majority interests.

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Minority Discount By Les Nemethy and Sergey Glekov

Our last article was on control premiums. Minority discount is basically the flipside of control premium

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Debt Financing of Acquisitions by Les Nemethy and Sergey Glekov

There are many reasons for using debt to finance an acquisition.

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Optimizing Company Valuation via Cost of Capital by Les Nemethy and Sergey Glekov

Our firm recently performed two valuations on a pharmaceutical company two years apart.

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Reverse Takeovers  by Les Nemethy and Sergey Glekov

In a typical merger deal, the bidding company acquires the target company and the bidder’s existing shareholders obtain the majority in the combined entity.

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Part VI on Asset Classes: Investment in luxury goods by Sergey Glekov and Les Nemethy

This is the sixth and final article in a series on asset classes, which examines luxury goods as an alternative investment asset class.

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Part V on Asset Classes: Preferred stocks By Les Nemethy and Loïc Cayssol

When investing in equities, investors have two main choices: common stocks or preferred shares.  Whereas the previous article in this series dealt with common shares, this article focuses on preferred shares.

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Part IV on Asset Classes: Common stocks by Les Nemethy and Sergey Glekov

This is the fourth article in a series on asset classes, designed to demonstrate that even in today’s “low interest” environment, one can generate reasonable returns on a diversified portfolio.

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Part III on Asset Classes: Bonds by Les Nemethy and Sergey Glekov

We often hear comments about how little interest banks pay, or the low yield on certain treasuries. In our business of Mergers & Acquisitions, we have seen quite a few business owners who want to sell their businesses, but hesitate to do so

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Part II on Asset Classes:  Size of Markets and Trading Volumes by Les Nemethy and Sergey Glekov

In our previous article, we gave an overview of the various asset classes, and typical risk/return relationships. In this article, we compare the liquidity and trading volumes of these asset classes.

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Different Asset Classes – Part I by Les Nemethy and Sergey Glekov

This is the first of a series of articles on asset classes. Whether you are an individual managing a portfolio for retirement, or someone who just sold their business and devising a strategy to invest funds, the choice of asset classes will be the most fundamental investment decision you make in designing your portfolio.

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The Case for Gold as an Investment Part III of III: Summarizing the Case for Gold
by Les Nemethy

Let me start this article with a quote by Ludwig von Mises, famous economist of the Austrian School of Economics, on the subjects of credit expansion and economic cycles.:

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The Case for Gold as an Investment Part II of III: Global Supply and Demand for Gold by Les Nemethy and Sergey Glekov

Part I of the series tackled the value of gold as a portfolio hedge. This article, Part II of the series, will discuss the very limited stock of gold within the world

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The Case for Gold as an Investment—Part I of III
by Les Nemethy and Sergey Glekov

The world is a much riskier place than most people realize. A very incomplete list of just some of the possible risks in the global geopolitical system include:

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Debt Levels: Have we learned the Lessons of 2008?

Total global debt levels have reached a whopping $247 trillion as of 2018 – up from $164 trillion in January 2009 1, the time of the last financial crisis. That’s up from 213% to 318% of global GDP 2:

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Why should you care about yield curves? by Les Nemethy and Mael Rohrig

Whether you’re a business person or an ordinary citizen concerned about what’s going on in the world, the yield curve is something you should care about.

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Debt versus equity in today’s financial climate

Owners and managers of businesses always have the option of financing a business by way of either debt or equity

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Conditions Precedent Prior to Closing

A condition precedent (CP) prior to closing is a condition that must be satisfied by a party to a transaction, failing which the other party is not bound to close the transaction

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Drag Along/Tag Along Rights

“Drag Along” and “Tag Along” rights are used by investors to facilitate their exit from an investment. They are methods particularly favored by private equity firms

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Non-core assets in corporate finance transactions

Non-core assets may greatly complicate raising equity financing, finding strategic or financial partners, or selling a business.

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Do you as a business owner need a valuation?

Business owners often ask themselves whether they need a business valuation, and if so what kind of valuation is required.

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Material Adverse Change

When negotiating the purchase or sale of a company, the investor or purchaser will often insist on what is known as a Material Adverse Change (MAC) clause. This article deals with three issues related to the MAC clause

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Valuation via Discounted Cash Flow

Business owners often ask themselves whether they need a business valuation, and if so what kind of valuation is required.

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Managing risk

Everything has its risks, even getting out of bed in the morning. But that is no excuse for not getting out of bed at all…

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