Corporate finance

So starting late January 2023, I will be back to teaching.

I'll be teaching two classes, the MBA, so Corporate Finance class and Evaluation class, and one to the undergraduates.

Now, to be actually physically in the classroom, you have to be an NYU Stern student.

But even if you're not, hopefully during the course of the session, you will find a way to join me in my classes and perhaps complete them with everybody else in the class.

And I think teaching is fun and I hope it's contagious.

So with that lead in, let's talk about the classes you can take.

Now, I teach, as I said, two big classes, corporate finance and valuation.

And when people walk into my class, there are three skill sets I would like them to have.

so in today's class we're going to be learning all about private equity so that's the breakdown there so that this class and two more remaining in this class we'll learn all about private equity or the different types of private equity and then in the next two classes we'll learn all about hedge fund strategies and how people invest in in that world so Let's get going.

I should point out that an awful lot of this class is based upon my book written with Jesse McDougall called Corporate Finance.

And there's a link to that below.

Actually, I'm talking through quite a lot of books in this class, so I'll probably have a few links below.

So the target company, the company that was being bought out, already had a lot of cash they had 20 million dollars of cash so as soon as the deal closed they were able to use that 20 million dollars in cash to pay off some of the loans to start with and so this is sort of the first idea of the leveraged buyout so this was 1955 and there were maybe more tax advantages back then than there are today.

A lot of loopholes have been closed, but this was the very first one.

And actually we have in the corporate finance book, there's I think a couple of paragraphs on the topic explaining that deal.

tax treatment of debt so like many investment banking innovations leverage buyouts were initially driven by tax savings and loopholes okay so essentially like why why come up with a new way of investing in companies and the answer is that there's a tax advantage and that's kind of what you'll see an awful lot of in finances whenever there's a regulatory hole or a tax advantage people will leap to try and profit from that.