Corporate Finance

This guide explains what interest coverage is and why it’s important. We also cover how interest coverage is calculated and how lenders use ratios to gain insight into a business’ ability to repay debt.

This post explains what goodwill is in accounting. We look at what goodwill is, how it is calculated, the conditions for amortizing goodwill, and why goodwill arises in M&A deals. Here are some key takeaways about goodwill:

This guide explains what vendor notes are and explains how vendor financing works. It goes into detail about how these arrangements are structured and why they are beneficial.

This guide introduces readers to the four types of banks and explains the difference between them. We will also look at the various ways that these banks can be organized.

This guide explains what term loans are and how businesses use them as a financing option. We also explain the main components of term loans and how they are different from other types of debt. Here are some quick takeaways regarding term loans:

This guide explains how term loans are structured and explains how amortization works. That guide explains what term loans are and how they work, this guide goes into depth about how these loans are actually structured and amortized as well as what these terms mean.

This guide explains what subordinated debt is. It also explains the relationship that subordinated debt has to senior debt and equity financing in terms of liquidity position in the capital stack and the corresponding risk to subordinated debt investors.