Types of buyers and their valuation method.

There are two main categories of buyers of companies: strategic buyers and financial buyers. Strategic buyers are corporations who want to acquire another company for strategic business reasons. Financial buyers are buyers who want to acquire another company purely as a financial investment. Financial buyers are typically LBO (Leveraged Buyout) Funds or other private equity … Continue reading Types of buyers and their valuation method.

What are Swaps

Another derivative, a swap, is a simple exchange of future cash flows. Some popular forms of swaps include foreign exchange swaps and interest rate swaps. Let’s first examine foreign exchange swaps. Say Sun Microsystems outsources its software development to India on a regular basis. In such a situation, it would make payments to the firms … Continue reading What are Swaps