Evaluation of Alternatives and Preliminary Recommendations
Chapters in this video
- 0:00 Public versus private: the patio and the VIP room
- 1:57 Debt, equity, and the hybrid combo meal
- 2:30 Primary versus secondary: follow the money
- 3:00 IPO versus follow-on versus PIPE
- 3:34 The five-dimension scoring rubric
- 5:23 Matching structure to need: growth, refinancing, M&A, exit
- 6:20 The investor-product match trap and why recommendations differ
- 6:51 Pitchbooks, board presentations, and the offering memorandum
- 7:26 Rapid-fire exam recap
What this video covers
- How public offerings differ from private placements on disclosure, timing, and investor universe (qualified institutional buyers and accredited investors)
- Why debt is cheaper than equity thanks to tax-deductible interest, but carries fixed obligations and covenant restrictions
- What primary versus secondary offerings mean for company proceeds, and which structures provide growth capital versus existing-holder liquidity
- How initial public offerings (IPOs), follow-ons, and private investment in public equity (PIPEs) differ on complexity, signaling, and speed
- The five dimensions bankers use to score alternatives: cost of capital, dilution, covenant burden, execution risk, and market windows
- How to match financing structure to company need: growth capital, refinancing, mergers and acquisitions (M&A) funding, or sponsor exit
- Why the security must match the investor's objective and strategy, and why two bankers can reach different preliminary recommendations from identical data
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 79 course also includes adaptive practice questions and spaced-repetition flashcards.