Debt equity ratio = total debt / total equity
debt equity ratio = 1233837 / 2178990 * 100
Debt equity ratio = 56.64%
A common size balance sheet is a type of standardized financial statement that completely lists all of a firms specific assets, liabilities, and equity claims as a percentage of a firms total assets.
a list of Connecticut private equity firms
Since ROE = ROA (Equity Multiplier) in order for ROE to equal ROA the equity multiplier must be one. In other words, the total assets to total shareholders' equity ratio must be one.
Where can you find a list of small to mid size US private equity firms?
Private equity firms must follow state and federal regulations. New York State is especially strict on these firms in light of recent fraudulent activity.
With the presidential race heating up in the U.S. and the background of one of the candidates in the private equity sector, I thought it might be a good idea to talk about private equity firms and what type of work they do. I promise, no partisanship or politics; nothing but straight-up finance goodness for you. Mitt Romney was one of the founders of a private equity firm called Bain Capital. So exactly what does a private equity firm do? Essentially private equity firms invest in private firms. They take an equity stake in the firm, just as you would do if you bought some stock in a publically traded corporation. The difference is that the companies that the private equity firm is dealing with are not publically traded. They can be family businesses or long-term privately held firms. One thing that is often the case with firms that become part of a private equity dealing is that they have come upon some rough times. Though it’s not always the case, often private equity firms will seek to make an investment in a distressed company and help it turn around. When a private equity firm takes a stake in a private company it usually places some of its own people on the board or in other leadership roles. They then focus on turning a profit, which benefits the company, its original owners, and the new stakeholders; the private equity firm. One mistake that some people make is to confuse private equity firms with venture capital firms. There is a difference; though some firms might dabble a little in both, usually PE and VC firms play to their strengths. Both private equity and venture capital firms take an equity stake in a privately-held firm and both seek to turn a profit through their involvement, there is a key difference; private equity firms typically deal with established companies and venture capital firms deal with start-ups.
A club deal, in finance, refers to a leveraged buyout or other private equity investment that involves several different private equity investment firms. Club deal can also be referred as syndicated investment.In a club deal, the investor group of private equity firms pools its assets together and makes the acquisition collectively. The practice has historically allowed private equity to purchase larger and more expensive companies than each constituent firm could potentially acquire through its own private equity funds. Additionally, by syndicating the equity ownership across a group of investment firms, each firm reduces its concentration and is able to maintain the diversification of its portfolio of investments.(by Wikipedia)
Because the cost of debt is generally lower than the cost of equity. This is because in case of financial distress, debt-holders are repaid before the equity holders are, as well as because debt has the assets of the firm as collateral and equity does not.
Private equity is a subset of the funds management industry. Private equity firms draw down funds from their investors and use those funds to buy portfolio companies. The private equity firms charge investors a small % of funds under management but hope to make most of their money when portfolio companies are sold, splitting gains on sale with their investors. The big threat for the sector is consolidation amongst private equity firms who can't sell portfolio companies at a profit and attract new investors (who pay fees) in. Please see http://financial-training-company.blogspot.com/2009/06/article-from-financial-training-company.html for more information. Although industry is facing outrageously difficult times but there are always opportunities for someone! Opportunities in the sector are there for: - Private equity firms that do have cash to invest (now should be a good time to buy assets); - Specialist private equity firms that invest in stressed businesses; - Specialist investors in distressed debt. They have the opportunity to buy debt at a low face value and then sell on at a profit later; - Specialist investors who purchase private equity companies' portfolios wholesale; - Advisors who can help private equity firms refinance debt as well as crunch their businesses or portfolios together to deliver savings. Financial training company www.financialtrainingassociates.co.uk runs training courses in topics such as financial modellng in excel, valuation, corporate finance and private equity.
Hong Kong is the second largest center of private equity in Asia. Some notable private equity firms here are CDH Investments, RRJ Capital, Baring Private Equity Asia, Affinity Equity Partners, A&F Capital Management, Leopard Capital LP, Mekong Capital, H&Q Asia Pacific, Welkin Group.
A general cash offer
After filing for Chapter 11 bankruptcy protection in December 2008, Polaroid's assets were divided amongst two private equity firms, Hilco Consumer Capital and Gordon Brothers Brands. They paid approximately $90 million in 2009 for Polaroids remaining assets. As a private company there are no publicly traded shares and no ticker symbol exists.