Corporate capital valuation

Did Romney put Bain Capital shares in his IRA?  October 12, 2017 – 03:55 am
Document Sample

Bill Cohan is the latest columnist to wonder how on earth Mitt Romney’s retirement account got so incredibly large — as much as $102 million — given the limits on the amount of money employees can put in such things each year. Nicholas Shaxson asked similar questions in Vanity Fair this month, and both of them cited the work of the WSJ’s Mark Maremont to help explain what might be going on; Cohan might want to update his link, since the Maremont article he links to is not the one with the real juice.

Maremont explains that when Bain bought a company, it wouldn’t just create debt and equity. Instead, there would be debt, equity, which was known as A shares, and then a kind of preferred equity called L shares. As far as the debt holders were concerned, the A and L shares together were the equity holders. And anybody with equity in the company received the same ratio of A shares to L shares. But A shares were much riskier, and had much more upside than L shares: holders of equity in Sealy, for instance, got a total gain of roughly 4X, where the L shares doubled in value and and A shares wound up worth 34 times what they were originally valued at.

So up until now, the theory has been that Mitt Romney pumped his retirement accounts full of A shares, which often had aggressively low valuations when they were first issued. If those valuations turn out to have been unreasonably low, that could create issues in an IRS audit.

Source: Felix Salmon

Wiley Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests + Website (Wiley Finance)
Book (Wiley)

You might also like:

When is Convertible Debt Preferable to Equity Financing a Startup - Slava Rubin
When is Convertible Debt Preferable to Equity Financing a Startup - Slava Rubin
Tax on distributions vs. capital gains ahead of company sales
Tax on distributions vs. capital gains ahead of company sales
Excel Finance Trick 13: PV function Capital Invest Decision
Excel Finance Trick 13: PV function Capital Invest Decision

Scum lords listed

The Housing Project
The Bay Area's 45 Worst Slumlords, Real Estate Speculators, Gentrification Profiteers and Other Contributors to the Housing Crisis
PART I
This research was developed by a team of volunteers who interviewed tenant attorneys, tenant rights activists, and tenants throughout the Bay Area and conducted background research (mostly on the web) on the landlords re...e Media Alliance
in association with sf.indymedia.org
Endorsed by: Bay Area Alternative Media Network, Coalition on Homelessness, Housing Rights Committee, Mission Agenda, Media Alliance, Poor Magazine, Rodriguez Brothers Productions, SF Tenants' Union, Stephen Dunifer, founder of Free Radio Berkeley, Street Spirit, Video Activist Network, The San Francisco Bay View, Whispered Media.

In Defense...continued

But a participatory economy enjoys advantages in managing this trade off compared to capitalism. Most importantly, direct recognition of 'social serviceability' is a more powerful incentive to innovation in a participatory economy, which reduces the magnitude of the trade off since more innovation will occur in a participatory economy than in capitalism for the same speed of adjustments. Secondl... Economy. Forthcoming.
Levy, David. 1991. Book Review: Seeking a Third Way. Dollars and Sense 171 November 1991: 18-20.
Pramas, Jason. 1991. A Roundtable on Participatory Economics. Z Magazine July/August 1991: 73-74.
Weisskopf, Thomas. 1992. Toward a Socialism for the Future in the Wake of the Demise of the Socialism of the Past. Review of Radical Political Economics 24 (3&4).

How To Save On Household Cleaning Supplies  — Huffington Post
Cut your costs by 25 percent, and you could save $126 a year. It isn't hard to do. Any one of the eight ways below will help you save… RELATED: Is A Maid Worth The Money? 4 Tips For Buying Brand-Name Clothes On A Budget · Dry Cleaning Gets Costlier …

Metra announces train car upgrades  — WBEZ
Each train car (called a "gallery" in industry speak) costs $650000 to rehabilitate and update, a marked cost savings compared to the price of buying brand new cars, according to Metra CEO Alex Clifford. He said those can cost as much as $3 million.

Wiley Venture Capital Valuation, + Website: Case Studies and Methodology (Wiley Finance)
Book (Wiley)

Today's Deals: L'Oreal, Pets, and Free Chili's  — Money Talks News
Today's Deals: L'Oreal, Pets, and Free Chili's. Plus big deals on Electrolux vacuums, Bath & Body Works products, brand name and designer clothing, and more. Share | comments ↓ | Scroll to story ↓. Related stories: 4 Tips for Buying Brand-Name …

The Money Masters Part 4
The Money Masters Part 4
Changing Roles of Valuations ..The Road Ahead.
Changing Roles of Valuations ..The Road Ahead.
Allegiance Capital Corporation, Private Investment Bankers
Allegiance Capital Corporation, Private Investment Bankers
Wiley Damodaran on Valuation: Security Analysis for Investment and Corporate Finance (Wiley Finance)
Book (Wiley)
Wiley Value: The Four Cornerstones of Corporate Finance
Book (Wiley)
Wiley Financial Valuation, + Website: Applications and Models (Wiley Finance)
Book (Wiley)

Related posts:

  1. Corporate capital acquitions
  2. Corporate capital evaluation
  3. Relational capital valuation
  4. CIPD Human capital Valuation
  5. Customer capital valuation