What Makes a Good Leveraged Buyout (LBO) Candidate? Private equity firms look for companies that can support a leveraged structure and still deliver strong returns. At the heart of a good LBO candidate are two things: reliable cash generation and room for value creation. A good candidate typically shows strength at both the company and…
What Is Offer Price in M&A? The offer price in M&A is the per-share amount a buyer is willing to pay to acquire a target company. It represents the buyer’s view of the company’s value and is usually compared against the target’s current market price. When the offer price is higher than the market price,…
Have you ever wondered why some companies thrive while others, with seemingly great products, collapse? The answer often lies in an unseen force: corporate governance. In this episode of Corporate Finance Explained on FinPod, we go beyond compliance checklists to explore how the delicate balance between a company’s board, executives, and shareholders is the true…
What Are Price Multiples? Price multiples are financial ratios that compare a company’s stock price to a measure of its financial performance, such as price-to-earnings (P/E) or price-to-cash flow (P/CF). Price multiples provide investors and analysts with a simple, market-based benchmark of valuation. Price multiples are commonly used in relative valuation, where a company’s financial…
Ready to take your data analysis skills to the next level? In this episode of What’s New at CFI, we chat with subject matter expert Joseph Yeates about his newest course, Data Analysis in Python. This course is the perfect follow-up to our “Getting Started with Python” series and is designed for anyone, especially Excel…
Could AI Replace FP&A Professionals? AI isn’t likely to replace FP&A professionals. Instead, AI systems can automate repetitive and time-consuming tasks such as data collection, standard report generation, and variance analysis. Strategic planning, forecasting, and business partnering remain human-driven. But the question of whether AI will replace finance professionals is more relevant than ever. Companies…
Real Assets vs. Financial Assets: What’s the Difference? Real assets are physical, tangible investments like real estate and commodities, while financial assets are intangible contracts like stocks and bonds. Real assets derive value from their physical properties, while financial assets get value from contractual claims or ownership rights. Real assets versus financial assets represent the…
Ever wonder how giants like Apple and Toyota fund their massive operations? The secret isn’t just in their sales, it’s in their corporate credit ratings. In this episode of FinPod, we go beyond the technical details to explain what these ratings from agencies like S&P and Moody’s actually mean and why they are one of…
What Is Customer Concentration? Customer concentration is when a large share of a company’s revenue depends on a small number of customers. High customer concentration creates financial risk if those customers reduce their spend or leave altogether. Companies try to limit customer concentration risk because too much reliance on a small number of customers can…
Core Functions of FP&A Software FP&A software helps finance teams manage data, consolidate results, build budgets and forecasts, create reports, and collaborate across the business. These capabilities are delivered through five core components: data management, financial consolidation, modeling, reporting and dashboards, and workflow and collaboration. Think of these components as a pyramid. Data management forms…
