AJ Smith’s Post

💼 Understanding LIFO Liquidation and Its Financial Impact 📊 As part of my CFA journey, I'm diving deep into inventory management methods. One fascinating concept is LIFO Liquidation (Last-In, First-Out) and its significant financial implications—particularly in periods of inflation. 🔍 What is LIFO Liquidation? LIFO liquidation happens when a company sells more units than it purchases, leading to the sale of older, lower-cost inventory. This often results in an artificial increase in gross profit because the older inventory—purchased before inflation—is sold at current, higher prices. Consequently, the Cost of Goods Sold (COGS) is lower, and profits appear inflated. 🔑 Why It Matters: Temporary Profit Boost: LIFO liquidation creates a short-term increase in net income, but it’s unsustainable. Misleading Financial Ratios: Higher profits may distort important financial ratios, potentially misleading analysts and investors. Management Manipulation: In some cases, companies might reduce inventory deliberately to report higher profits. Tax Implications: Higher taxable income during LIFO liquidation can increase tax liabilities, affecting the company's cash flow. 💡 This is a critical point for analysts and investors to watch for. It helps adjust financial evaluations, ensuring long-term performance is assessed accurately. #Finance #CFA #LIFO #InventoryManagement #FinancialAnalysis #InflationImpact #FinanceJourney

In today's blog, we discuss the IPO listing process in GIFT IFSC. Read our step-by-step guide to learn more. https://lnkd.in/gtYJB4nZ #GIFTCity #IPO #InCorpIndia Dhaval Shah Meet Thakkar

Prepare for startup to be a bigger company first while preparing to start up 🤣 Divesting is an interesting strategy and very fluid given the bundling/ unbundling and tax implications (and this is before the impacts of livelihood) https://lnkd.in/gbJhnR7h

Curious about the IPO listing process in GIFT IFSC? Our latest blog post provides a comprehensive step-by-step guide to help you navigate through it. Whether you're an investor, entrepreneur, or finance enthusiast, this guide is packed with valuable insights. 👉 Read our full guide here: https://lnkd.in/gtYJB4nZ

“Carve-outs frequently offer an excellent opportunity to unlock value without necessitating the sale of the entire business. They can also lead to a re-rating of an undervalued company, with the cash proceeds reinvested for growth, used to reduce debt, or returned to shareholders.” 💬   Cassie Herlihy, Associate Director, Public Equity, discusses how the value in UK corporates can be unlocked through carve-outs in her piece for Trustnet. In 2024, there have been more than 20 significant carve-outs from UK listed companies. Most of these have been sold at #valuation multiples higher than the overall group’s valuation multiple, with some even exceeding the entire market cap of the parent company.   Cassie highlights specialist data and analytics company Ascential which split and sold its three distinct high-quality business units successfully in 2024, as well as consultancy firm Ricardo and document management service Restore, which are both appealing acquisition targets for 2025.   https://lnkd.in/evWzAVye   #ukequities #carveouts | Capital at risk. Not an investment recommendation. Opinions are the speakers own and not necessarily those of Gresham House.

#ICYMI | Experts suggest strict rules to clean up SME IPO arena; seek lock-in clauses, entry barriers 🚧🏢📈 Read more on this interesting piece by Ashish Rukhaiyar👇 https://lnkd.in/d-7z5fP3 #SME #IPO #EntryBarriers 

Corporate Finance Advisers when they close *another* deal with the help of MarktoMarket be like >>> If you're struggling to sling volume and fast stack benjis you should be saving time, winning more clients and closing more deals by... 📈 Building veracious, auditable comp sets within a couple of minutes, 🏨 Identifying ideal acquirers from across listed, trade and private equity buyers in the UK and Internationally, 🏗 Sourcing your next acquisition target using our highly filterable UK & Irish company data, or ✉ Post deal-marketing like an absolute boss. #corporatefinance #privateequity #valuations #SME

I Generally don’t do research of any SME IPO But came across one whose IPO came 5 months back Point 1: Company raised from Fresh Issue around 50cr and to my strange around 8cr which is around 16% is just issue related expenses Now what’s even more interesting is Company’s FY24 total PAT was around 10cr Why Lead manager is taking such hefty fees??? Second: Maximum 25% of Gross proceeds can be kept of General corporate purpose Now company of the Net Proceeds left around 42cr keeping aside 12cr for general corporate purpose I wonder if issue expenses are being paid out why still so huge around 12cr is to be kept aside for general corporate purpose? Also interesting is as on 31 March 2024 company have fixed assets of 7cr around and company want 12cr just for general corporate purpose? Third: Company said will use around 28cr for capex and gave “estimated” timeline that By August 2024 company should have got delivery of Plant & Machinery And again to my strange in annual report released just recently company just told land for setting up new factory was bought Which company’s RHP told should have been done in March 2024.. So After March 2024 now almost 5 months are over no update i could find on delivery of Plant & Machinery or Order of Plant & Machinery anything Just stay cautious on Any SME company you are buying -Don’t just go with the craziness Together we learn🙏 #Equityresearch #Sharemarket #SMEIPO

Considering sharing the ownership of your business? It's a big decision! Before you do, consider the type of shares, any restrictions, and potential implications. It's always best to seek advice before making such a move https://lnkd.in/eNNF_v_j #BusinessOwnership #Shareholders

Sustained PE interest in professional services in light of Grant Thornton's recent buyout. Smart PE interest validates the idea that multi-services firms are a strong alternative to the more conventional single-service roll-ups I think that we'll start to see way more mid-market professional services groups being built / formed by mergers between complimentary service firms as the formation of these 1) reduces cost of client acquisition [i.e. cross-selling/up-selling additional pro services] 2) provides a larger brand/franchise for talent acquisition and 3) equips investors with added stability + revenue diversification.