Advertisement
Accounting to Private Equity: A Deep Dive into Financial Reporting and Due Diligence
Author: Alexandra Petrova, CPA, CFA, CAIA
Alexandra Petrova is a seasoned finance professional with over 15 years of experience in private equity, specializing in financial due diligence and portfolio company accounting. She has worked with numerous leading private equity firms, both in the US and internationally, and holds a Masters in Accounting from the University of Chicago Booth School of Business. Her expertise in accounting to private equity encompasses all facets of financial reporting, valuation, and risk management within the private equity landscape.
Keywords: Accounting to Private Equity, Private Equity Accounting, Financial Due Diligence, Private Equity Reporting, Fund Accounting, Portfolio Company Accounting, Leveraged Buyouts, LBO Accounting, Transaction Accounting
Introduction:
The relationship between accounting and private equity is symbiotic and deeply intertwined. Private equity firms, by their very nature, rely heavily on accurate and comprehensive financial information to make informed investment decisions, manage portfolio companies, and ultimately generate returns for their limited partners (LPs). Understanding the nuances of accounting to private equity is therefore crucial for professionals working within the industry, as well as for those seeking to understand this dynamic sector. This analysis delves into the historical context, current practices, and future trends shaping the field of accounting to private equity.
Historical Context:
The early days of private equity saw simpler accounting practices. However, as the industry matured and leveraged buyouts (LBOs) became more sophisticated, the need for rigorous financial reporting increased. The complexity of transactions, involving significant debt financing and intricate capital structures, necessitated specialized accounting expertise. The rise of sophisticated valuation techniques and the need for accurate performance measurement further emphasized the importance of accounting to private equity. The advent of standardized accounting frameworks, such as IFRS and US GAAP, brought additional layers of complexity but also enhanced transparency and comparability.
Current Relevance of Accounting to Private Equity:
Today, accounting to private equity is a multifaceted discipline encompassing several key areas:
1. Financial Due Diligence: This is arguably the most critical aspect. Before making an investment, private equity firms conduct extensive due diligence, meticulously examining the target company's financial statements. This involves not only verifying the accuracy of reported figures but also assessing underlying accounting policies, identifying potential risks, and developing a comprehensive understanding of the company's financial health. Sophisticated accounting techniques and forensic accounting skills are often necessary to uncover potential issues.
2. Portfolio Company Accounting: Once an investment is made, ongoing monitoring and management of the portfolio company's financial performance become paramount. This necessitates close collaboration between the private equity firm and the management team of the portfolio company. The accounting function plays a vital role in providing accurate financial reporting, budgeting, forecasting, and performance analysis to facilitate informed decision-making.
3. Fund Accounting: Private equity firms operate through funds, and the accounting for these funds is complex. It involves tracking capital calls and distributions, managing investor allocations, and preparing regular financial reports for LPs. Accurate fund accounting is essential for ensuring transparency and complying with regulatory requirements.
4. Transaction Accounting: Private equity investments often involve multiple transactions, such as acquisitions, divestitures, and refinancing. Accurate and timely transaction accounting is essential to capture the financial impact of these events and provide a clear picture of the fund’s overall performance.
Accounting Standards and Regulations:
The accounting standards applied in private equity transactions significantly impact the reported financial information. The choice between IFRS and US GAAP depends on the jurisdiction and the specific circumstances of the investment. Compliance with relevant regulations, including those related to securities reporting and tax, is critical.
Challenges and Future Trends:
The field of accounting to private equity is constantly evolving, facing new challenges and adopting new trends. The increasing use of data analytics and artificial intelligence (AI) to enhance due diligence processes is a prime example. Furthermore, the increasing focus on ESG (environmental, social, and governance) factors is influencing investment decisions and necessitates the incorporation of ESG metrics into financial reporting.
Conclusion:
Accounting to private equity is a critical function impacting every stage of the private equity investment lifecycle. From initial due diligence to ongoing portfolio management and fund accounting, robust accounting practices are essential for informed decision-making, risk mitigation, and ultimately, maximizing returns. As the private equity industry continues to grow and evolve, the need for skilled professionals with expertise in this specialized field will only increase. The ability to navigate complex accounting standards, regulations, and emerging trends is crucial for success in this dynamic and challenging environment.
FAQs:
1. What is the difference between fund accounting and portfolio company accounting in private equity? Fund accounting focuses on the financial statements of the private equity fund itself, while portfolio company accounting focuses on the individual companies owned by the fund.
2. What are the key financial metrics used in private equity accounting? Key metrics include IRR (Internal Rate of Return), MOIC (Multiple on Invested Capital), and TVPI (Total Value to Paid-In Capital).
3. What role does valuation play in private equity accounting? Valuation is crucial for determining the fair value of assets, especially in the context of due diligence and performance measurement.
4. How does tax accounting affect private equity investments? Tax implications are significant in private equity due to the complex structures and transactions involved. Specialized tax professionals are often needed.
5. What are some common accounting issues encountered in private equity due diligence? Common issues include revenue recognition, inventory valuation, and the treatment of intangible assets.
6. What software tools are commonly used for private equity accounting? Popular software includes dedicated private equity accounting systems and ERP (Enterprise Resource Planning) systems.
7. What are the ethical considerations in private equity accounting? Maintaining independence, objectivity, and transparency are paramount ethical considerations.
8. How does IFRS compare to US GAAP in the context of private equity accounting? Both have their own standards, and the choice influences how financial data is reported.
9. What qualifications are necessary for a career in private equity accounting? A strong accounting background, CPA certification, and experience in financial modeling are highly advantageous.
Related Articles:
1. "Private Equity Due Diligence: A Practical Guide": This article provides a comprehensive overview of the due diligence process in private equity, highlighting the accounting aspects.
2. "Leveraged Buyouts: Accounting and Financial Modeling": Focuses on the specific accounting challenges associated with LBO transactions.
3. "IFRS vs. US GAAP in Private Equity Investments": A comparative analysis of the two major accounting standards in the context of private equity.
4. "Portfolio Company Performance Measurement in Private Equity": Examines the key performance indicators and the role of accounting in performance tracking.
5. "Fund Accounting for Private Equity Funds: A Step-by-Step Guide": A practical guide to the accounting procedures involved in managing private equity funds.
6. "The Role of Data Analytics in Private Equity Due Diligence": Explores how data analytics is transforming the due diligence process in private equity.
7. "ESG Considerations in Private Equity Investing": Discusses the increasing importance of environmental, social, and governance (ESG) factors in private equity investment decisions.
8. "Tax Optimization Strategies in Private Equity": Focuses on tax planning and optimization techniques specific to private equity investments.
9. "Career Paths in Private Equity Accounting": Provides insights into career opportunities and the necessary skills for success in private equity accounting.
Publisher: Wiley Finance
Wiley Finance is a leading publisher of books and journals in the fields of finance, accounting, and investment management. Their publications are known for their rigor, accuracy, and relevance to industry professionals. They have a strong track record of publishing authoritative works on topics related to accounting to private equity.
Editor: Dr. David Miller, PhD, CPA
Dr. Miller is a professor of accounting at a leading business school and has extensive experience in private equity research and consulting. His expertise in financial reporting and valuation adds significant credibility to the publication.
| accounting to private equity: Private Equity Accounting, Investor Reporting, and Beyond Mariya Stefanova, 2015-02-26 Today's only advanced comprehensive guide to private equity accounting, investor reporting, valuations and performance measurement provides a complete update to reflect the latest standards and best practices, as well as the author's unique experience teaching hundreds of fund professionals. In Private Equity Accounting, Investor Reporting and Beyond Mariya Stefanova brings together comprehensive advanced accounting guidance and advice for all private equity practitioners and fund accountants worldwide: information once available only by learning from peers. Replete with up-to-date, user-friendly examples from all main jurisdictions, this guide explains the precise workings and lifecycles of private equity funds; reviews commercial terms; evaluates structures and tax treatments; shows how to read Limited Partnership Agreements; presents best-practice details and processes, and identifies costly pitfalls to avoid. |
| accounting to private equity: Accounting and Valuation Guide AICPA, 2019-10-08 Developed for preparers of financial statements, independent auditors, and valuation specialists, this guide provides nonauthoritative guidance and illustrations regarding the accounting for and valuation of portfolio company investments held by investment companies within the scope of FASB ASC 946, Financial Services —Investment Companies, (including private equity funds, venture capital funds, hedge funds, and business development companies). It features16 case studies that can be used to reason through real situations faced by investment fund managers, valuation specialists and auditors, this guide addresses many accounting and valuation issues that have emerged over time to assist investment companies in addressing the challenges in estimating fair value of these investments, such as: Unit of account Transaction costs Calibration The impact of control and marketability Backtesting |
| accounting to private equity: International Private Equity Eli Talmor, Florin Vasvari, 2011-06-24 Bringing a unique joint practitioner and academic perspective to the topic, this is the only available text on private equity truly international in focus. Examples are drawn from Europe the Middle East, Africa and America with major case studies from a wide range of business sectors, from the prestigious collection of the London Business School’s Coller Institute of Private Equity. Much more than a simple case book, however, International Private Equity provides a valuable overview of the private equity industry and uses the studies to exemplify all stages of the deal process, and to illustrate such key topics as investing in emerging markets; each chapter guides the reader with an authoritative narrative on the topic treated. Covering all the main aspects of the private equity model, the book includes treatment of fund raising, fund structuring, fund performance measurement, private equity valuation, due diligence, modeling of leveraged buyout transactions, and harvesting of private equity investments. |
| accounting to private equity: Taxation of U.S. Investment Partnerships and Hedge Funds Navendu P. Vasavada, 2010-07-13 A new, lucid approach to the formulation of accounting policies for tax reporting Unraveling the layers of complexity surrounding the formulation of accounting policies for tax reporting, Taxation of US Investment Partnerships and Hedge Funds: Accounting Policies, Tax Allocations and Performance Presentation enables your corporation to implement sound up-front accounting and tax policies in order to reduce the overall cost of CFO and legal functions within a U.S. Investment partnership. Understand the pitfalls and optimize across legitimate policies that are consistent with the IRS regulations Presents a clear roadmap for accounting, tax policies, tax filing and performance presentation for US investment partnerships and hedge funds Providing tremendous understanding to a complex topic, Taxation of US Investment Partnerships and Hedge Funds is guaranteed to demystify the inner workings of the formulation of accounting policies for tax reporting. |
| accounting to private equity: The LPA Anatomised Nigel Van Zyl, Edward Lee, 2018 |
| accounting to private equity: Mastering Private Equity Claudia Zeisberger, Michael Prahl, Bowen White, 2017-08-07 The definitive guide to private equity for investors and finance professionals Mastering Private Equity was written with a professional audience in mind and provides a valuable and unique reference for investors, finance professionals, students and business owners looking to engage with private equity firms or invest in private equity funds. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, the book systematically distils the essence of private equity into core concepts and explains in detail the dynamics of venture capital, growth equity and buyout transactions. With a foreword by Henry Kravis, Co-Chairman and Co-CEO of KKR, and special guest comments by senior PE professionals. This book combines insights from leading academics and practitioners and was carefully structured to offer: A clear and concise reference for the industry expert A step-by-step guide for students and casual observers of the industry A theoretical companion to the INSEAD case book Private Equity in Action: Case Studies from Developed and Emerging Markets Features guest comments by senior PE professionals from the firms listed below: Abraaj • Adams Street Partners • Apax Partners • Baring PE Asia • Bridgepoint • The Carlyle Group • Coller Capital • Debevoise & Plimpton LLP • FMO • Foundry Group • Freshfields Bruckhaus Deringer • General Atlantic • ILPA • Intermediate Capital Group • KKR Capstone • LPEQ • Maxeda • Navis Capital • Northleaf Capital • Oaktree Capital • Partners Group • Permira • Terra Firma |
| accounting to private equity: Investing in Private Equity Partnerships Kay Müller, 2008-06-17 Kay Müller provides insight into the monitoring activities of private equity fund investors and explores their information requirements. He analyzes the reporting of private equity fund managers, reveals information gaps and provides guidance on how to improve investor relations. |
| accounting to private equity: Private Equity Harry Cendrowski, Louis W. Petro, James P. Martin, Adam A. Wadecki, 2012-05-01 An authoritative guide to understanding the world of private equity (PE) investing, governance structures, and operational assessments of PE portfolio companies An essential text for any business/finance professional's library, Private Equity: History, Governance, and Operations, Second Edition begins by presenting historical information regarding the asset class. This information includes historical fundraising and investment levels, returns, correlation of returns to public market indices, and harvest trends. The text subsequently analyzes PE fund and portfolio company governance structures. It also presents ways to improve existing governance structures of these entities. A specific focus on portfolio company operations, including due diligence assessments, concludes the text. Seamlessly blends historical information with practical guidance based on risk management and fundamental accounting techniques Assists the book's professional audience in maximizing returns of their PE investments Highly conducive to advanced, graduate-level classroom use Purchase of the text includes access to a website of teaching materials for instructional use Learn more about PE history, governance, and operations with the authoritative guidance found in Private Equity: History, Governance, and Operations, Second Edition. |
| accounting to private equity: Private Equity Demystified John Gilligan, Mike Wright, 2020-11-05 Private equity has grown rapidly over the last three decades, yet largely remains poorly understood. Written in a highly accessible style, the book takes the reader through what private equity means, the different actors involved, and issues concerning sourcing, checking out, valuing, and structuring deals. |
| accounting to private equity: Lessons from Private Equity Any Company Can Use Orit Gadiesh, Hugh Macarthur, 2008-02-07 Private equity firms are snapping up brand-name companies and assembling portfolios that make them immense global conglomerates. They're often able to maximize investor value far more successfully than traditional public companies. How do PE firms become such powerhouses? Learn how, in Lessons from Private Equity Any Company Can Use. Bain chairman Orit Gadiesh and partner Hugh MacArthur use the concise, actionable format of a memo to lay out the five disciplines that PE firms use to attain their edge: · Invest with a thesis using a specific, appropriate 3-5-year goal · Create a blueprint for change--a road map for initiatives that will generate the most value for your company within that time frame · Measure only what matters--such as cash, key market intelligence, and critical operating data · Hire, motivate, and retain hungry managers--people who think like owners · Make equity sweat--by making cash scarce, and forcing managers to redeploy underperforming capital in productive directions This is the PE formulate for unleashing a company's true potential. |
| accounting to private equity: Guide to Hedge Funds Philip Coggan, 2011-09-20 Hedge fund managers are the new masters of the universe. The best earn more than $1 billion a year and are so sought after that they can afford to turn investor money away. The funds they run have, to some extent, established an alternative financial system, replacing banks as lenders to risky companies, acting as providers of liquidity to markets and insurers of last resort for risks such as hurricanes, and replacing pension funds and mutual funds as the most significant investors in many companies—even in some cases buying companies outright. The revised and updated second edition of this lively guide sheds much needed light on the world of hedge funds by explaining what they are, what they do, who the main players are, the regulations affecting them, the arguments as to whether they are a force for good or bad, and what the future holds for them. More people have a view about hedge funds than know about them. Philip Coggan bridges the knowledge gap in this clearly written guide. Every chapter is a goldmine of information and analysis, making it easy to learn about hedge funds. No investor, no investment adviser, no trustee, no dinner-table conversationalist should express opinions on the sector until they have read this book. —Elroy Dimson, BGI Professor of Investment Management, London Business School While much has been written about hedge fund strategies and their (occasionally spectacular) failures, we have not yet seen a general primer to help the investor understand the world of hedge funds. Philip Coggan presents us with exactly that—a well-written, succinct summary of a world we all need to understand better. —Rob Arnott, Chairman of Research Affiliates and Editor Emeritus of the Financial Analysts Journal |
| accounting to private equity: Private Capital - Private Equity And Beyond Prof Eli Talmor, Prof Florin Vasvari, 2019 |
| accounting to private equity: The Myth of Private Equity Jeffrey C. Hooke, 2021-10-05 Once an obscure niche of the investment world, private equity has grown into a juggernaut, with consequences for a wide range of industries as well as the financial markets. Private equity funds control companies that represent trillions of dollars in assets, millions of employees, and the well-being of thousands of institutional investors and their beneficiaries. Even as the ruthlessness of some funds has made private equity a poster child for the harms of unfettered capitalism, many aspects of the industry remain opaque, hidden from the normal bounds of accountability. The Myth of Private Equity is a hard-hitting and meticulous exposé from an insider’s viewpoint. Jeffrey C. Hooke—a former private equity executive and investment banker with deep knowledge of the industry—examines the negative effects of private equity and the ways in which it has avoided scrutiny. He unravels the exaggerations that the industry has spun to its customers and the business media, scrutinizing its claims of lucrative investment returns and financial wizardry and showing the stark realities that are concealed by the funds’ self-mythologizing and penchant for secrecy. Hooke details the flaws in private equity’s investment strategies, critically examines its day-to-day operations, and reveals the broad spectrum of its enablers. A bracing and essential read for both the financial profession and the broader public, this book pulls back the curtain on one of the most controversial areas of finance. |
| accounting to private equity: Private Equity Funds James M. Schell, Pamela Lawrence Endreny, Kristine M. Koren, 2023-08-28 The best guide to private equity funds. Insight and explanations for both fund sponsors and investors. The gold standard. --Andrew Zalasin, General Partner and CFO: RRE Ventures Best Practices for Organizing and Managing a Fund With nearly $7 trillion invested in more than 20,000 funds, investor interest in the private equity industry has returned, despite the economic turmoil of recent years. Still, guidance about the organization and administration of these funds is tough to find. This 1,400+ page resource, will equip corporate lawyers, investment professionals, and tax practitioners and with best practices to manage these funds effectively. Private Equity Funds: Business Structure and Operations covers a wide range of important issues, such as: the key economic differences between various types of funds; structuring the private equity fund to meet economic expectations and investment goals; securing maximum tax benefits for the sponsor of the fund; duties of the fund's General Partner and Investment Advisor; the major regulatory issues affecting the private equity fund; and much more. Private Equity Funds: Business Structure and Operations reflects the aftermath of the financial crisis of 2007 to 2009. The authors also focus on cyber risk and the compliance obligations of investment advisers. |
| accounting to private equity: Financial Modeling and Valuation Paul Pignataro, 2013-07-10 Written by the Founder and CEO of the prestigious New York School of Finance, this book schools you in the fundamental tools for accurately assessing the soundness of a stock investment. Built around a full-length case study of Wal-Mart, it shows you how to perform an in-depth analysis of that company's financial standing, walking you through all the steps of developing a sophisticated financial model as done by professional Wall Street analysts. You will construct a full scale financial model and valuation step-by-step as you page through the book. When we ran this analysis in January of 2012, we estimated the stock was undervalued. Since the first run of the analysis, the stock has increased 35 percent. Re-evaluating Wal-Mart 9months later, we will step through the techniques utilized by Wall Street analysts to build models on and properly value business entities. Step-by-step financial modeling - taught using downloadable Wall Street models, you will construct the model step by step as you page through the book. Hot keys and explicit Excel instructions aid even the novice excel modeler. Model built complete with Income Statement, Cash Flow Statement, Balance Sheet, Balance Sheet Balancing Techniques, Depreciation Schedule (complete with accelerating depreciation and deferring taxes), working capital schedule, debt schedule, handling circular references, and automatic debt pay downs. Illustrative concepts including detailing model flows help aid in conceptual understanding. Concepts are reiterated and honed, perfect for a novice yet detailed enough for a professional. Model built direct from Wal-Mart public filings, searching through notes, performing research, and illustrating techniques to formulate projections. Includes in-depth coverage of valuation techniques commonly used by Wall Street professionals. Illustrative comparable company analyses - built the right way, direct from historical financials, calculating LTM (Last Twelve Month) data, calendarization, and properly smoothing EBITDA and Net Income. Precedent transactions analysis - detailing how to extract proper metrics from relevant proxy statements Discounted cash flow analysis - simplifying and illustrating how a DCF is utilized, how unlevered free cash flow is derived, and the meaning of weighted average cost of capital (WACC) Step-by-step we will come up with a valuation on Wal-Mart Chapter end questions, practice models, additional case studies and common interview questions (found in the companion website) help solidify the techniques honed in the book; ideal for universities or business students looking to break into the investment banking field. |
| accounting to private equity: Accounting for Value Stephen Penman, 2010-12-30 Accounting for Value teaches investors and analysts how to handle accounting in evaluating equity investments. The book's novel approach shows that valuation and accounting are much the same: valuation is actually a matter of accounting for value. Laying aside many of the tools of modern finance the cost-of-capital, the CAPM, and discounted cash flow analysis Stephen Penman returns to the common-sense principles that have long guided fundamental investing: price is what you pay but value is what you get; the risk in investing is the risk of paying too much; anchor on what you know rather than speculation; and beware of paying too much for speculative growth. Penman puts these ideas in touch with the quantification supplied by accounting, producing practical tools for the intelligent investor. Accounting for value provides protection from paying too much for a stock and clues the investor in to the likely return from buying growth. Strikingly, the analysis finesses the need to calculate a cost-of-capital, which often frustrates the application of modern valuation techniques. Accounting for value recasts value versus growth investing and explains such curiosities as why earnings-to-price and book-to-price ratios predict stock returns. By the end of the book, Penman has the intelligent investor thinking like an intelligent accountant, better equipped to handle the bubbles and crashes of our time. For accounting regulators, Penman also prescribes a formula for intelligent accounting reform, engaging with such controversial issues as fair value accounting. |
| accounting to private equity: Private Equity as an Asset Class Guy Fraser-Sampson, 2010-05-17 Unfairly reviled, and much misunderstood, private equity differs from all other asset classes in various important respects, not least the way in which its fund mechanisms operate, and the way in which its returns are recorded and analysed. Sadly, high level asset allocation decisions are frequently made on the basis of prejudice and misinformation, rather than a proper appreciation of the facts. Guy Fraser-Sampson draws upon more than twenty years of experience of the private equity industry to provide a practical guide to mastering the intricacies of this highly specialist asset class. Aimed equally at investors, professionals and business school students, it starts with such fundamental questions as ’what is private equity?’ and progresses to detailed consideration of different types of private equity activity such as venture capital and buyout. Rapid and significant changes in the environment during the recent financial crisis have prompted the need for a new edition. Separate chapters have been added on growth and development capital, as well as secondary investing. Newly emergent issues are considered, such as lengthening holding periods and the possible threat of declining returns. Particular problems, such as the need to distinguish between private equity and hedge funds, are addressed. The glossary has also been expanded. In short, readers will find that this new edition takes their understanding of the asset class to new heights. Key points include: A glossary of private equity terms Venture capital Buyout Growth capital Development capital Secondary investing Understanding private equity returns Analysing funds and returns How to plan a fund investment programme Detailed discussion of industry performance figures |
| accounting to private equity: Introduction to Private Equity Cyril Demaria, 2010-03-30 Introduction to Private Equity is a critical yet grounded guide to the private equity industry. Far more than just another introductory guide, the book blends academic rigour with practical experience to provide a critical perspective of the industry from a professional who has worked at many levels within the industry, including insurance, funds of funds, funds and portfolio companies. The book looks at private equity from the point of view of the individual or the business. How is a private business valued? How is the acquisition transaction processed? What are the due diligence issues that should be considered before moving ahead? A valuable insight to a rather opaque market. Introduction to Private Equity covers the private equity industry as a whole, highlighting its historical development in order to put its recent development into perspective. The book covers its organization, governance and function, then details the various segments within the industry, including LBO, Venture Capital, Mezzanine Financing, Growth Capital and beyond. Finally, it offers a framework to anticipate and understand its future developments. It provides a balanced perspective on the current corporate governance challenges which are affecting the industry and draws perspective to understand the evolution of the sector, following one of its major crises. |
| accounting to private equity: Private Capital Investing Roberto Ippolito, 2020-02-03 A step-by-step, comprehensive approach to private equity and private debt Private Capital Investing: The Handbook of Private Debt and Private Equity is a practical manual on investing in the two of the most common alternative asset classes (private equity and private debt) and provides a unique insight on how principal investors analyze investment opportunities. Unlike other textbooks available in the market, Private Capital Investing covers the various phases that principal investors follow when analyzing a private investment opportunity. The book combines academic rigor with the practical approach used by leading institutional investors. Chapters are filled with practical examples, Excel workbooks (downloadable from the book website), examples of legal clauses and contracts, and Q&A. Cases are referred at the end of every chapter to test the learning of the reader. Instructors will find referrals to both third-party cases or cases written by the author. • Covers analytical tools • Includes the most common methods used to structure a debt facility and a private equity transaction • Looks at the main legal aspects of a transaction • Walks readers through the different phases of a transaction from origination to closing Bridging the gap between academic study and practical application, Private Capital Investing enables the reader to be able to start working in private equity or private debt without the need for any further training. It is intended for undergraduates and MBA students, practitioners in the investment banking, consulting and private equity business with prior academic background in corporate finance and accounting. |
| accounting to private equity: Pratt's Guide to Private Equity and Venture Capital Sources, 2021 Edition Dan Gunner, 2021-03-31 |
| accounting to private equity: Investment Banks, Hedge Funds, and Private Equity David P. Stowell, 2012-09-01 The dynamic environment of investment banks, hedge funds, and private equity firms comes to life in David Stowell's introduction to the ways they challenge and sustain each other. Capturing their reshaped business plans in the wake of the 2007-2009 global meltdown, his book reveals their key functions, compensation systems, unique roles in wealth creation and risk management, and epic battles for investor funds and corporate influence. Its combination of perspectives—drawn from his industry and academic backgrounds—delivers insights that illuminate the post-2009 reinvention and acclimation processes. Through a broad view of the ways these financial institutions affect corporations, governments, and individuals, Professor Stowell shows us how and why they will continue to project their power and influence. - Emphasizes the needs for capital, sources of capital, and the process of getting capital to those who need it - Integrates into the chapters ten cases about recent transactions, along with case notes and questions - Accompanies cases with spreadsheets for readers to create their own analytical frameworks and consider choices and opportunities |
| accounting to private equity: Getting a Job in Private Equity Brian Korb, Aaron Finkel, 2008-12-03 If you're seriously considering a career in private equity, you have to become familiar with how firms hire. With Getting a Job in Private Equity, you'll gain invaluable insights that will allow you to stay one step ahead of other individuals looking to secure a position in this field. Here, you'll discover what it takes to make it in PE from different entry points, what experience is needed to set yourself up for a position, and what can be done to improve your chances of landing one of these limited opportunities. |
| accounting to private equity: Private equity demystified Institute of Chartered Accountants in England and Wales. Corporate Finance Faculty, John Gilligan, Mike Wright, 2008 |
| accounting to private equity: The Oxford Handbook of Private Equity Douglas Cumming, 2012-03-22 This Handbook provides a comprehensive picture of the issues surrounding the structure, governance, and performance of private equity. |
| accounting to private equity: Private Equity in Action Claudia Zeisberger, Michael Prahl, Bowen White, 2017-08-07 Global Best Practice in Private Equity Investing Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment. The case studies in this book cover the full spectrum of private equity strategies, including: Carve-outs in the US semiconductor industry (LBO) Venture investing in the Indian wine industry (VC) Investing in SMEs in the Middle East Turnaround situations in both emerging and developed markets Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read. As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets. Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle. |
| accounting to private equity: Private Equity Harry Cendrowski, Louis W. Petro, James P. Martin, Adam A. Wadecki, 2012-03-22 An authoritative guide to understanding the world of private equity (PE) investing, governance structures, and operational assessments of PE portfolio companies An essential text for any business/finance professional's library, Private Equity: History, Governance, and Operations, Second Edition begins by presenting historical information regarding the asset class. This information includes historical fundraising and investment levels, returns, correlation of returns to public market indices, and harvest trends. The text subsequently analyzes PE fund and portfolio company governance structures. It also presents ways to improve existing governance structures of these entities. A specific focus on portfolio company operations, including due diligence assessments, concludes the text. Seamlessly blends historical information with practical guidance based on risk management and fundamental accounting techniques Assists the book's professional audience in maximizing returns of their PE investments Highly conducive to advanced, graduate-level classroom use Purchase of the text includes access to a website of teaching materials for instructional use Learn more about PE history, governance, and operations with the authoritative guidance found in Private Equity: History, Governance, and Operations, Second Edition. |
| accounting to private equity: Private Equity and Venture Capital in Europe Stefano Caselli, Giulia Negri, 2018-01-26 Global financial markets might seem as if they increasingly resemble each other, but a lot of peculiar aspects qualify different markets with different levels of development. Private equity investors can take advantage of these variations. Structured to provide a taxonomy of the business, Private Equity and Venture Capital in Europe, Second Edition, introduces private equity and venture capital markets while presenting new information about the core of private equity: secondary markets, private debt, PPP within private equity, crowdfunding, venture philanthropy, impact investing, and more. Every chapter has been updated, and new data, cases, examples, sections, and chapters illuminate elements unique to the European model. With the help of new pedagogical materials, this Second Edition provides marketable insights about valuation and deal-making not available elsewhere. - Covers new regulations and legal frameworks (in Europe and the US) described by data and tax rates - Features overhauled and expanded pedagogical supplements to increase the versatility of the Second Edition - Focuses on Europe - Includes balanced presentations throughout the book |
| accounting to private equity: Private Equity as an Asset Class Guy Fraser-Sampson, 2011-12-01 Unfairly reviled, and much misunderstood, private equity differs from all other asset classes in various important respects, not least the way in which its fund mechanisms operate, and the way in which its returns are recorded and analysed. Sadly, high level asset allocation decisions are frequently made on the basis of prejudice and misinformation, rather than a proper appreciation of the facts. Guy Fraser-Sampson draws upon more than twenty years of experience of the private equity industry to provide a practical guide to mastering the intricacies of this highly specialist asset class. Aimed equally at investors, professionals and business school students, it starts with such fundamental questions as ’what is private equity?’ and progresses to detailed consideration of different types of private equity activity such as venture capital and buyout. Rapid and significant changes in the environment during the recent financial crisis have prompted the need for a new edition. Separate chapters have been added on growth and development capital, as well as secondary investing. Newly emergent issues are considered, such as lengthening holding periods and the possible threat of declining returns. Particular problems, such as the need to distinguish between private equity and hedge funds, are addressed. The glossary has also been expanded. In short, readers will find that this new edition takes their understanding of the asset class to new heights. Key points include: A glossary of private equity terms Venture capital Buyout Growth capital Development capital Secondary investing Understanding private equity returns Analysing funds and returns How to plan a fund investment programme Detailed discussion of industry performance figures |
| accounting to private equity: Inside Private Equity James M. Kocis, James C. Bachman, IV, Austin M. Long, III, Craig J. Nickels, 2009-04-20 Inside Private Equity explores the complexities of this asset class and introduces new methodologies that connect investment returns with wealth creation. By providing straightforward examples, it demystifies traditional measures like the IRR and challenges many of the common assumptions about this asset class. Readers take away a set of practical measures that empower them to better manage their portfolios. |
| accounting to private equity: Private Equity Darryl J. Cooke, 2011 Explaining clearly the law and current practice of private equity transactions, this new edition of Private Equity: Law and Practice offers advice and information relevant to private equity investors, companies seeking funds, those financing deals and managers wishing to buy out a company. |
| accounting to private equity: The Analysis and Use of Financial Statements Gerald I. White, Ashwinpaul C. Sondhi, Dov Fried, 2002-12-30 Accounting Standards (US and International) have been updated to reflect the latest pronouncements. * An increased international focus with more coverage of IASC and non-US GAAPs and more non-US examples. |
| accounting to private equity: Private Equity Operational Due Diligence Jason A. Scharfman, 2012-02-28 A step-by-step guide to develop a flexible comprehensive operational due diligence program for private equity and real estate funds Addressing the unique aspects and challenges associated with performing operational due diligence review of both private equity and real estate asset classes, this essential guide provides readers with the tools to develop a flexible comprehensive operational due diligence program for private equity and real estate. It includes techniques for analyzing fund legal documents and financial statements, as well as methods for evaluating operational risks concerning valuation methodologies, pricing documentation and illiquidity concerns. Covers topics including fund legal documents and financial statement analysis techniques Includes case studies in operational fraud Companion website includes sample checklists, templates, spreadsheets, and links to laws and regulations referenced in the book Equips investors with the tools to evaluate liquidity, valuation, and documentation Also by Jason Scharfman: Hedge Fund Operational Due Diligence: Understanding the Risks Filled with case studies, this book is required reading for private equity and real estate investors, as well as fund managers and service providers, for performing due diligence on the noninvestment risks associated with private equity and real estate funds. |
| accounting to private equity: ECIIC 2019 10th European Conference on Intangibles and Intellectual Capital Prof. Massimo Sargiacomo, 2019-05-23 |
| accounting to private equity: Entrepreneurial Finance and Accounting for High-Tech Companies Frank J. Fabozzi, 2016-11-18 Financial aspects of launching and operating a high-tech company, including risk analysis, business models, U.S. securities law, financial accounting, tax issues, and stock options, explained accessibly. This book offers an accessible guide to the financial aspects of launching and operating a high-tech business in such areas as engineering, computing, and science. It explains a range of subjects—from risk analysis to stock incentive programs for founders and key employees—for students and aspiring entrepreneurs who have no prior training in finance or accounting. The book begins with the rigorous analysis any prospective entrepreneur should undertake before launching a business, covering risks associated with a new venture, the reasons startup companies fail, and the stages of financing. It goes on to discuss business models and their components, business plans, and exit planning; forms of business organization, and factors to consider in choosing one; equity allocation to founders and employees; applicable U.S. securities law; and sources of equity capital. The book describes principles of financial accounting, the four basic financial statements, and financial ratios useful in assessing management performance. It also explains financial planning and the use of budgets; profit planning; stock options and other option-type awards; methodologies for valuing a private company; economic assessment of a potential investment project; and the real options approach to risk and managerial flexibility. Appendixes offer case studies of Uber and of the valuation of Tentex. |
| accounting to private equity: FRS 102 , 2015 |
| accounting to private equity: Value-creation in Middle Market Private Equity John A. Lanier, 2016-02-17 Value-creation in Middle Market Private Equity by John A. Lanier holistically examines the ecosystem relationships between middle market private equity firms and their portfolio companies. Small business is the job creating engine in the US economy, and consequently is a prime target market for private equity investment. Indeed, private equity backs over six of each 100 private sector jobs. Both the small businesses in which private equity firms invest, and the private equity firms making the investments, face inter- and intra-company fiduciary leadership challenges while implementing formulated strategy. The architecture of each private equity firm-portfolio company relationship must be uniquely crafted to capitalize on the projected return on investment that is memorialized in the investment thesis. Given the leveraged capital structure of portfolio companies, the cost of a misstep is problematic. Individual private equity professionals are typically members of multiple investment teams for the firm. Not only may each investment team have its own unique leadership style, but its diverse members have to assimilate styles for each team in which they participate relative to a specific portfolio company. Acquisitions and their subsequent integrations add exponential complexity for both private equity investment and portfolio company leadership teams; indeed, cultural integration ranks among the most chronic acquisition obstacles. Accordingly, the stakeholders of private equity transactions do well to embrace leadership best practices in applying value-creation toolbox best practices. The perspectives of both the private equity investment team and the portfolio company leadership team are within the scope of these chapters. |
| accounting to private equity: Anarchist Accounting Anders Sandström, 2020-11-29 This book is about accounting in an alternative libertarian socialist economic system. It explores what information and transactions we need to enable democratic and effective financial decisions by those affected by the decisions. Based on the economic model, participatory economics, the author proposes a set of accounting principles for an economy comprised of common ownership of productive resources, worker and consumer councils, and democratic planning, promoting the model’s core values. The author tackles questions such as how accounting could be organised in an economy with no private equity owners or private lenders and creditors that is not based on greed and competition but instead on cooperation and solidarity. A large part of the book is focused on issues regarding investments; thus, he asks how and on what basis decisions are made about the allocation of an economy’s production between consumption today and investments that enable more consumption in the future, and how investments are accounted for. He also considers how investments in capital assets and production facilities would be decided, financed, and valued if they are not owned by private capital owners and if allocation does not take place through markets but through a form of democratic planning. In answering these questions and more, the author demonstrates that alternative economic systems are indeed possible, and not merely lofty utopias that cannot be put into practice, and inspires further discussion about economic vision. By applying accounting to a new economic setting and offering both technical information and the author’s bold vision, this book is a comprehensive and valuable supplementary text for courses touching on critical accounting theory. It will also appeal to readers interested in alternative kinds of economies. |
| accounting to private equity: Structuring Venture Capital, Private Equity and Entrepreneurial Transactions, 2015 Edition Jack S. Levin, Russell S. Light, 2015-07-07 Now, you can minimize your clients' tax liability and avoid legal pitfalls, as well as maximize returns on successful transactions and be prepared for all of the potential benefits, with Structuring Venture Capital, Private Equity and Entrepreneurial Transactions, 2015 Edition. Here at last is one-step-at-a-time, start-to-finish structural guidance for the following common business transactions: Venture capital financing New business start-ups Brains-and-money deals Growth-equity investments Leveraged and management buyouts Industry consolidations Troubled company workouts and reorganizations Going public Selling a business Forming a private equity fund Guided by Jack S. Levin and Donald E. Rocap's dynamic, transaction-by-transaction approach, you'll make the tax, legal, and economic structuring consequences of every deal benefit your client every time. In this extraordinary hands-on resource by the most sought-after authorities in the field, you'll see exactly how to: Distribute the tax burden in your client's favor Maximize returns on successful transactions Control future rights to exit a profitable investment And turn every transaction into a winning venture! |
| accounting to private equity: Structuring Venture Capital, Private Equity, and Entrepreneurial Transactions , 2007 |
| accounting to private equity: The Oxford Handbook of Venture Capital Douglas Cumming, 2012-04-24 Venture capital (VC) refers to investments provided to early-stage, innovative, and high growth start-up companies. A common characteristic of all venture capital investments is that investee companies do not have cash flows to pay interest on debt or dividends on equity. Rather, investments are made with a view towards capital gain on exit. The most sought after exit routes are an initial public offering (IPO), where a company lists on a stock exchange for the first time, and an acquisition exit (trade sale), where the company is sold in entirety to another company. However, VCs often exit their investments by secondary sales, wherein the entrepreneur retains his or her share but the VC sells to another company or investor buybacks, where the entrepreneur repurchases the VC`s interest and write-offs (liquidations). The Oxford Handbook of Venture Capital provides a comprehensive picture of all the issues dealing with the structure, governance, and performance of venture capital from a global perspective. The handbook comprises contributions from 55 authors currently based in 12 different countries. |
Carmel, IN Accounting Firm | Home Page | Beyond Accounting LLC
Beyond Accounting LLC is built to help businesses of many sizes, from start-ups to mid-sized established companies, manage their financial and accounting back office.
Edgewater CPA Group | Business Accounting Service Experts
Bridging the gap between CFO and accounting services with our strategic suite of CFO-level services intended to turn major ambitions into manageable action plans. Customized …
THE BEST 10 ACCOUNTANTS in CARMEL, IN - Updated 2025
They are easy to use, seamless tax preparation and always available when you need documents for things like closing on a home. I appreciate their attention to detail and their help when I …
Best 30 Accounting Services in Carmel, IN with Reviews
From Business: We focus on providing high-quality and affordable outsourced accounting and tax reporting services to small and mid-sized not-for-profit organizations. We would… 2. …
The 10 Best CPA Firms in Carmel, IN (with Free Estimates)
We are accounting and bookkeeping experts that specialize in providing financial reconciliations, monthly financial statement creation, and transaction processing for small to medium-sized …
Accounting Jobs, Employment in Carmel, IN - Indeed
Work with company leadership to develop, establish, and manage materials management, procurement and accounting procedures necessary for effective operations. Job costing …
What Is Accounting? The Basics Of Accounting – Forbes Advisor
Jun 12, 2024 · Accounting is the process of keeping track of all financial transactions within a business, such as any money coming in and money going out. It’s not only important for …
About | Full Service Accountant in Carmel, IN | Watson CPA
Ryan Watson is a certified accountant experienced in a variety of financial strategies, including tax planning for business & personal, cash flow management, project financing, and litigation …
CPA in Carmel - Rhea & Company, CPAs
Rhea & Company provides uniquely personalized, professional accounting and tax services to small business and individual clients. The virtual practice is based in Carmel, Indiana and is …
Accounting 101: The Basics - Accountingverse
Accounting is known as the language of business. Through a series of steps known as accounting cycle, it gathers information about business transactions, and collates and summarizes them …
Carmel, IN Accounting Firm | Home Page | Beyond Accounting LLC
Beyond Accounting LLC is built to help businesses of many sizes, from start-ups to mid-sized established companies, manage their financial and accounting back office.
Edgewater CPA Group | Business Accounting Service Experts
Bridging the gap between CFO and accounting services with our strategic suite of CFO-level services intended to turn major ambitions into manageable action plans. Customized …
THE BEST 10 ACCOUNTANTS in CARMEL, IN - Updated 2025
They are easy to use, seamless tax preparation and always available when you need documents for things like closing on a home. I appreciate their attention to detail and their help when I …
Best 30 Accounting Services in Carmel, IN with Reviews
From Business: We focus on providing high-quality and affordable outsourced accounting and tax reporting services to small and mid-sized not-for-profit organizations. We would… 2. …
The 10 Best CPA Firms in Carmel, IN (with Free Estimates)
We are accounting and bookkeeping experts that specialize in providing financial reconciliations, monthly financial statement creation, and transaction processing for small to medium-sized …
Accounting Jobs, Employment in Carmel, IN - Indeed
Work with company leadership to develop, establish, and manage materials management, procurement and accounting procedures necessary for effective operations. Job costing …
What Is Accounting? The Basics Of Accounting – Forbes Advisor
Jun 12, 2024 · Accounting is the process of keeping track of all financial transactions within a business, such as any money coming in and money going out. It’s not only important for …
About | Full Service Accountant in Carmel, IN | Watson CPA
Ryan Watson is a certified accountant experienced in a variety of financial strategies, including tax planning for business & personal, cash flow management, project financing, and litigation …
CPA in Carmel - Rhea & Company, CPAs
Rhea & Company provides uniquely personalized, professional accounting and tax services to small business and individual clients. The virtual practice is based in Carmel, Indiana and is …
Accounting 101: The Basics - Accountingverse
Accounting is known as the language of business. Through a series of steps known as accounting cycle, it gathers information about business transactions, and collates and summarizes them …
