How to Value Recapitalizations and Leveraged Buyouts

Inselbag, Isik; Kaufold, Howard

doi:10.1111/j.1745-6622.1989.tb00182.x

J Applied Corp Finance

1989

DOI: 10.1111/j.1745-6622.1989.tb00182.x

|View full text |Cite

How to Value Recapitalizations and Leveraged Buyouts

Isik Inselbag

Howard Kaufold

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

1997

2022

Publication Types

Select...

Article6

Relationship

Self Cite0

Independent6

Authors

Journals

Cited by 14 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…EV =Value of the firm at present FCF = Free after-tax cash flow of the acquired operating business, calculated as if it was all equity financed assuming either a final payoff or continuing values for the three terms of the equation)26Inselbag and Kaufold (1989), p. 87 stress the increased popularity of the APV technique, especially among theorists. This view is affirmed by Kaufhold (1997), p. 114.…”

mentioning

confidence: 99%

The Valuation of Tax Shields Induced by Asset Step-Ups in Corporate Acquisitions

Groh

Henseleit²

2009

SSRN Journal

View full text Add to dashboard Cite

We derive discount rates for depreciation and amortization tax shields resulting from asset step-ups in corporate mergers and acquisitions. By assigning all relevant sources of uncertainty for such tax shields and by accounting for corporate debt it is shown that for APV valuations r*, a rate between the firm's cost of debt and the risk-free rate, is adequate to discount step-up induced depreciation benefits. When the benefits are valued on a standalone basis, the adequate discount rate is the after-tax weighted average of r*. Discount rates for these shields have been determined arbitrarily in empirical research on corporate acquisitions so far. However, they are found to be in line with the rates deduced in this paper.

show abstract

mentioning

confidence: 99%

The Valuation of Tax Shields Induced by Asset Step-Ups in Corporate Acquisitions

Groh

Henseleit²

2009

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…See for exampleMyers (1974), Luerhman (1997),Inselberg and Kaufold (1989) andRuback (2002).C 2007 The Author Journal compilation C 2007 Blackwell Publishing Ltd, 2007…”

mentioning

confidence: 99%

Capital Cash Flows, APV and Valuation

Booth¹

2007

Euro Fin Management

View full text Add to dashboard Cite

"This paper examines three different methods of valuing companies and projects: the adjusted present value (APV), capital cash flows (CCF) and weighted average cost of capital (WACC) methods. It develops the appropriate WACC and beta leveraging formulae appropriate for each valuation model, so that given a particular valuation model the correct APV and CCF values can be determined from the WACC value and vice versa. Further it goes on to show when the perpetuity formulae give poor estimates of the value of individual cash flows, even though the overall values are correct. The paper cautions that the APV and CCF models require more information than is currently known, such as the value of the corporate use of debt, and consequently can give misleading results, particularly in sensitivity analyses." Copyright 2007 The Authors Journal compilation (c) 2007 Blackwell Publishing Ltd.

show abstract

Does Debt Management Matter for REIT Returns?

Feng

Miller

Tırtıroğlu

2022

J Real Estate Finan Econ

View full text Add to dashboard Cite

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

How to Value Recapitalizations and Leveraged Buyouts

Cited by 14 publications

References 0 publications

The Valuation of Tax Shields Induced by Asset Step-Ups in Corporate Acquisitions

The Valuation of Tax Shields Induced by Asset Step-Ups in Corporate Acquisitions

Capital Cash Flows, APV and Valuation

Does Debt Management Matter for REIT Returns?

Contact Info

Product

Resources

About