Enterprising Investor
Practical analysis for investment professionals

Corporate Finance


What Lies Beneath a Buyout: The Complex Mechanics of Private Equity Deals

Private equity buyouts are complex financial maneuvers. By understanding the structuring that lies beneath these transactions, stakeholders can navigate the intricate world of PE buyouts with confidence and precision.

Editor’s Picks: Top 3 Book Reviews of 2024 and a Sneak Peek at 2025

What books reviewed in 2024 stand out for their applicability to practical issues confronting investment decision-makers?

For the Analyst: Peer Benchmarking Methods to Improve Earnings Forecasts

Peer benchmarking is a vexing task for financial analysts but one that is critical for forecasting earnings. This straightforward measure can help find peers for relative performance, compensation, and valuation benchmarking.

IFRS Accounting Standard Will Support Better Investment Decisions

IFRS 18 responds to investors' concerns about challenges in comparing companies' financial performance.

Economic Value of Equity (EVE): Protection from Rising Interest Rates

Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes.

Perpetual Debt Is Already Here

The costs and risks associated with debt have shifted from the borrower to the lender.

Modern Private Equity and the End of Creative Destruction

Our economies are under the stewardship of fund managers with one goal in mind: to maximize fee income, even if it means holding on to impaired assets.

Corporate Bonds after a Spin-Off: Consider the Covenants

Whatever their motivations, spin-offs can have a dramatic effect on the performance of the associated corporate bonds, so it is crucial that fixed-income investors conduct the necessary analysis. Nathan N.J. Grant, CFA, has some advice.

US Corporate Tax Cuts: Companies Concerned about Year-End Time Crunch

Yesterday, Congress passed the tax reform bill that reduces the corporate tax rate from 35% to 21%. Tax law changes will make it into financial statements when they are signed by President Donald Trump. While the changes are not effective until 2018, they significantly impact estimates made in 2017 financial statements once the bill is signed.

Weekend Reads for Investors: Wake Up from the Summer Doldrums Edition

Jason Voss, CFA, provides his picks for Weekend Reads for Investors. This edition curates stories on the potential repeal of the tax deduction corporations in the United States receive on debt payments, the end of Big Oil, how we can recognize machine consciousness, and more.