Financial Sponsors Group
What is the Financial Sponsors Group? The financial sponsors group (FSG) is a team within the investment banking division (IBD) of an investment bank that covers private equity (PE) firms and investment funds (referred to as “financial sponsors”). This group differs from industry-focused groups that work with operating companies in a specific sector, and instead,...
Equity Research Report: Definition, Types, and Key Components
What is an Equity Research Report? An equity research report is a document prepared by an analyst that provides a recommendation on whether investors should buy, hold, or sell shares of a public company. Additionally, it provides an overview of the business, the industry it operates in, the management team, its financial performance, risks, and...
Market Valuation Approach
What is the Market Approach to Valuation? The market approach is a valuation method used to determine the appraisal value of a business, intangible asset, business ownership interest, or security by considering the market prices of comparable assets or businesses that have been sold recently or those that are still available. Price-related indicators like sales,...
Standard Deviation
What is Standard Deviation? From a statistics standpoint, the standard deviation of a dataset is a measure of the magnitude of deviations between the values of the observations contained in the dataset. From a financial standpoint, the standard deviation can help investors quantify how risky an investment is and determine their minimum required return on the...
Multiple Expansion
What is Multiple Expansion? Multiple expansion is a form of arbitrage that employs the purchase of a security at a lower valuation multiple and selling a security at a higher valuation multiple. Generally, companies with lower valuation multiples are smaller and with higher investment risk compared to companies with higher valuation multiples. In addition, the...
