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Just like Ireland, Spain had a credit boom financed mostly with external debt, which meant that the balancesheets of their banks are now stuffed with bad debts as asset values collapse. One of those banks, Anglo-Irish Bank, lent 67 billion euros to the non-financial sector (realestate) in 2007 alone.
This is especially true in large cities, where premium realestate often means that parks are pushed out and buildings are pushed up, skyward, creating canyons of concrete and glass. But at least we have that square of grass. For many workers, any green space is hard to come by. And yet the research that does exist is fascinating.
These so-called “stranded assets,” sitting on petro-company balancesheets, are essentially worthless. In other words, does it really make sense for a hospitality or realestate company to build a new hotel, apartment, or office complex right on the coast in Miami? And what is the risk of devaluation?
Stay off of ventures'' balancesheets — and get onto their income statements. The only occasionally valid excuse for being on a venture''s balancesheet (and then for only a very short period) is to create a "demonstration effect" that shows unaware investors that there are profitable opportunities to invest in.
.” GreenBiz founder Joel Makower defines a stranded asset as “a financial term that describes something that has become obsolete or nonperforming well ahead of its useful life, and must be recorded on a company’s balancesheet as a loss of profit.” And it’s not alone: Reuters estimates at least $1.4
Including emissions on the balancesheet would lead to them being more accurately tracked and hopefully reduced throughout the supply chain. She believes it is necessary to catalyze change in realestate development.
The creditor countries hence decided to allow the use of the European Stability Mechanism (ESM) to directly recapitalize the damaged balancesheets of Europe's banks, specifically the Spanish banks. And market participants were initially thrilled. Yields on sovereign bonds fell immediately following the deal's announcement.
There may have been another business that they could have started, utilizing the company’s assets (realestate, technology, staff, etc.) If your brand is struggling, take a hard look at your purpose, not just your balancesheets. We all love a good comeback story, and corporate turnarounds can turn CEOs into stars.
Despite stiff economic headwinds, robust M&A opportunities are there for the taking, with many companies enjoying steady cash flows and strong balancesheets. “In In today’s high-inflation environment, strategic acquirers with lots of cash on the balancesheet need to do something with it,” says Christopher R.
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