Dexter Braff

Valuation as a Meme

Can we finally put to bed the quaint notion that the stock market is even remotely a barometer of the value of a firm based upon its revenues, profits, growth, and risk-return fundamentals? The newest meme stock is AMC Entertainment. You know, the movie theater chain that in the wake of COVID posted more than $1.8B in losses? The company whose future is very much unclear now that the likes of Netflix, Amazon, Hulu, HBO Max, Disney, and others have made first run premiers at home a thing? Yeah, that AMC.

Almost Haven, Messed Dominion

On January 30th, 2018, the Wall Street Journal reported the formation of what would later be called Haven under the headline, Triple Threat: Amazon, Berkshire, JPMorgan Rattle Health-Care Firms “The companies said the venture would be “free from profit-making incentives and constraints” and would develop technological solutions to provide simplified, high quality health care for their hundreds of thousands of U.S. workers, but they offered few other details [emphasis – and foreshadowing – added]” .

From the Ministry of the Obvious: DoorDash’s IPO is Nuts

How many times have we been here? It’s only been a year since We Work was valued at $47 billion, only to see its value crash land 70% in just 30 days. Now we have DoorDash, one of the companies that won the pandemic. Check out this madness.

TCIV: M&A Firm ‘Extremely Bullish’ on Deals in 2021

While buyers likely will be viewing the marketplace through the lens of the COVID-19 pandemic until the midpoint of the year, a confluence of factors has the Braff Group, the mergers and acquisitions firm that specializes in healthcare services, feeling bullish about market activity in 2021, president...

Will a Stay Calm and Carry-on Mindset Beat Back Stubborn COVID Headwinds?

Good question. Glad we asked it. No doubt this is a fluid situation. In fact, given what has transpired in just the past week, our answer today could very well go back to the future in 30 days or so (more on that below). But right now? There is evidence – mostly anecdotal at this point – that the M&A world is beginning to awaken from the Big Sleep.

Will COVID-19 Provide Cover to Corral Value Multiples?

Last summer, we noticed a peculiarly interesting article about what had become a runaway lending environment. Debt capacity had risen as high as 6-7 times EBITDA. What’s more, EBITDA was fast becoming a proforma, go-forward, if-everything-goes-perfect figure. In other words, a substantially puffed up version of the truth that effectively added another 1-2 turns of EBITDA that lenders were willing to put up.

Will Mergers and Acquisitions Multiples Fall as Debt Goes Back to the Future?

Remember the run-up to the global recession when lenders were tripping over themselves to get in on a mergers and acquisitions climate that was positively giddy? When debt capacity, typically expressed as a multiple of a company’s earnings before interest, taxes, depreciation, and amortization reached milestone levels, eclipsing the “6X barrier” (as coined by PitchBook)? When the term “covenant-lite”, describing loan agreements with fewer protective covenants for the buyer and less restrictions for borrowers, became a thing?