BMF Logo

www.bmf.cpa

Optimizing Capital Structure and the Level of Debt Assumption

Optimizing Capital Structure and the Level of Debt Assumption

Notwithstanding purely theoretical arguments that investors should be indifferent to capital structure, in practice the relative combination of debt and equity capital utilized in calculating the weighted average cost of capital (WACC) can have a material impact on a valuation. However, valuation analysts tend to oversimplify assumptions regarding capital structure by relying solely on public guideline companies, resulting in inaccurate valuations.

Read the full article   CLICK HERE

Mark B. Bober?>

CPA/ABV, CFF, CVA
Partner and Executive Committee Member, Transaction Advisory Services, Valuation Services, Litigation Support
330.255.2425

Steve C. Swann?>

CPA/ABV, CFE
Partner and Executive Committee Member, Transaction Advisory Services
330.255.2417
View More Articles

About the Authors

Mark B. Bober
Mark B. Bober
CPA/ABV, CFF, CVA
Partner and Executive Committee Member, Transaction Advisory Services, Valuation Services, Litigation Support
330.255.2425
Steve C. Swann
Steve C. Swann
CPA/ABV, CFE
Partner and Executive Committee Member, Transaction Advisory Services
330.255.2417

Subscribe

Stay up-to-date with the latest news and information delivered to your inbox.

Subscribe Now

Related Articles

Navigating Buy-Side Tax Considerations in Mergers and Acquisitions
A Comprehensive Approach to Resolving Post-Acquisition Disputes
Unlocking Your Business’s True Value: A Guide for Smart Loan Negotiations
Discounting Damages: How a Dollar Today is Worth More Than a Dollar Tomorrow
Solving the Case of Hidden Funds