Newsletter

Corporate debt market during COVID-19 pandemicby Les Nemethy and Sergey Glekov

We are in the midst of a global coronavirus pandemic, with worldwide GDP contracting substantially, creating a phenomenon of corporations issuing record amounts of new indebtedness

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May Covid-19 trigger a European Banking Crisis? by Les Nemethy and Nicolas Beguin

Forecasts for GDP decrease within the European Union in 2020 run as high as 13%, even after taking into account massive stimulation by Governments1.

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COVID-19 and the M&A Market by Les Nemethy and Sergey Glekov 

M&A activity, both globally and in Central Europe, declined dramatically in Q1 2020

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Coronavirus:  Are Financial Markets out of the Woods? By Les Nemethy

Despite the number of cases and deaths rising to approximately 1.8 million and 110,000 respectively, as at the time of writing of this article , there has been considerable good news on the coronavirus during the past week or two

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Covid-19 and Financial Markets (Part III of III on Covid-19) By Les Nemethy

After several weeks of extreme volatility, the most dramatic crash in the history of financial markets and partial recovery, where can we expect financial markets to go from here?

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COVID-19, the World Economy and Financial Markets Part II of III by Les Nemethy and Sergey Glekov

The number of COVID-19 cases has reached to 170,000 and total deaths rose beyond 6,5001 as at the time of writing of this article (March 16, 2020).

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COVID-19 and Financial Markets Part I of III by Les Nemethy and Sergey Glekov

COVID-19 has taken approximately 3,000 lives to date, and infected approximately 90,0001 people in over 60 countries. This article is not about the humanitarian aspects of COVID-19

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Factoring for SME’s by Les Nemethy and El Mehdi Hosni

Factoring is a financing method in which a business owner sells accounts receivable at a discount to a third-party funding source, in order to raise capital

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Impact Investing by Les Nemethy and Sergey Glekov

Impact investing, as the word “impact” implies, is all about investing to make a positive impact on the world, not only generating a financial return1.

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Should an operating company own real estate? By Les Nemethy and Sergey Glekov

If you have a company that produces or sells a product or service, the questions often arise as to (a) whether that company should own the premises or real estate which it occupies (e.g. offices, warehouse, plant, etc.)

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Should you use a holding company?By Les Nemethy

Many small to mid-sized businesses have no need for a holding company. It may be sufficient for the company owner(s) to personally own shares or quotas directly in the company in question.

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The US Repo Market—A Harbinger of Recession? by Les Nemethy and Sergey Glekov

Recent irregularities in the US repo market may be early indicators of an upcoming recession, as was the case in 2008-2009 and before the dotcom crash of 2001.

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Corporate Debt in Central Europe By Les Nemethy and Sergey Glekov

Non-financial corporations can typically use two types of debt funding – bank loans and debt securities (e.g. bonds).

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Dividend Policy in Public and Private Companies By Les Nemethy and Sergey Glekov

Dividend is usually discussed in the context of public companies. Like share buybacks, it is a way of putting cash back to shareholders.

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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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