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Double Exit

Debt Finance & Loan Covenants

For any company borrowing money, the issues of the amount to be borrowed, the interest rate charged, and the term of the loan are typically the first things to be focused on when negotiating a lending agreement. However, another key aspect of any such agreement between a lender and a company will be the covenants […]

Real World Reads – Capital Structure Decisions

Funding a business with an appropriate capital structure is a crucial part of any company’s financial management. Funding requirements for a business can vary from day to day operations to capital expenditure and new business acquisitions. The variety of sources of finance with respect to term (e.g. short, medium, and long) and type of finance (e.g. […]

Share Buybacks – The Good, The Bad, & The Ugly

A recent announcement from the UK government that they are undertaking a study on the impact of share buybacks and the possible role they are playing in the inflation of executive pay has put this particular practice in the headlines. From a basic corporate finance perspective, share buybacks (also known as share repurchases) are a method of […]

Real World Read – Carillion Plc [Company in Difficulty]

The recent collapse of Carillion Plc in the UK provides a timely case study for CAP2 SFMA students on the topic of a company in difficulty. Carillion was the UK’s second largest construction contract with a host of public and private construction and facilities management contracts. “How did you go bankrupt?” Bill asked. “Two ways,” […]

IAS 36 (Impairment)- Survey of Irish Plcs

Following on from a previous post on IAASA’s publication of their observations on topical financial reporting issues in 2017, IAASA have also just recently published the results of a desktop survey focusing on how Irish Plcs apply IAS 36. This is a great practical insight into the important issue of impairment testing in companies. Given the […]