Transactional Valuation Career Overview When one company buys another company, accounting rules require the buyer go through a purchase price allocation of the seller’s assets and liabilities. A transactional valuation team is brought in to determine the fair market value of the seller’s assets and liabilities. This includes hard-to-value intangible assets. Transactional valuation can be…
Alternative Investments Career Overview Traditional investment managers typically buy and invest in assets such as stocks, bonds, money markets, or some combination of the three. By contrast, alternative investments managers invest in non-traditional assets, such as private equity, commodities, real estate, or infrastructure, or they invest in stocks, bonds, and money market instruments but use…
Working in Operational Risk Operational risk, or the risk of losses due to failed internal processes or systems, human error, or external events, has always existed in the financial services industry. Over the past decade, operational risk management (ORM) has become the focus of more resources and regulatory oversight due to the increased complexity and…
In recent years, finance and banking—and many other industries—have come under scrutiny for lack of gender diversity and persistent inequality. Despite initiatives to promote diversity and equal opportunities, women continue to be underrepresented in leadership and executive positions, face barriers to advancement, and experience wage gaps. There’s no doubt complex factors contribute to this ongoing…
What is a Borrowing Base? A borrowing base represents the adjusted value of eligible collateral that a lender will be extending credit against, before applying a discount factor (e.g. maximum LTV) that determines the credit limit. Borrowers pledge many different categories of assets as security for a loan. But the book value of those assets…
What Happened to Silicon Valley Bank? On Friday, March 10, 2023, the Californian banking regulator ordered the closure of embattled Silicon Valley Bank and appointed the FDIC as receiver of the bank’s assets. This marks the largest bank failure since the Global Financial Crisis in 2008 caused the collapse of Washington Mutual, as well as…
AI in Banking: A Historical Perspective It was not so long ago that bankers transported physical cash and wrote loan and account balances in paper ledgers. It was an era where those bankers were often the only reputable citizens in many towns to talk to about finance-related topics. Since that time, advances in technology have…
Operating and Financial Leverage as Business Growth Tools Companies have two main controls to improve business profitability and avoid financial distress. Used intentionally, they can compound profitability and growth. Used recklessly, they can catalyze financial distress. That’s because operating leverage and financial leverage have the power to amplify a company’s earnings in both directions. Modest…
Excel is an integral part of almost every finance or data professional’s toolbox. Knowing your way around a spreadsheet is one thing, but mastering it—especially when it comes to data analysis for deep insights and informed decision-making—can make a huge difference for your productivity, performance, and competitive edge. Get on your way with the CFI…
What is a 51% Attack? Cryptocurrency has made its mark on the world and appears to be here to stay. According to Kat Tetrina from Forbes Advisor, there are currently over 22,000 crypto projects, and their total market value sits around 1 trillion dollars. Perhaps you have heard of some of the top coins like…
