Working capital Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Net working capital (NWC) is calculated as current assets minus current liabilities.[1] It is a derivation of working capital, that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit. Calculation[edit] The basic calculation of the working capital is done on the basis of the gross current assets of the firm. Basic formula[edit] working capital = Gross Current assetsNet working capital = Current assets – Current liabilities. Inputs[edit] Working capital management[edit] Decision criteria[edit]
List of private equity firms The following are several lists of notable private equity firms based on criteria laid out in each list. Largest private equity firms[edit] The following is a ranking of the largest private equity firms published in 2013. The list includes very few venture capital firms, which tend to be smaller than their leveraged buyout counterparts; for a list of those see List of venture capital firms. List of investment banking private equity groups[edit] The following is a list of notable private equity firms and merchant banking and other private equity groups that currently reside within investment banking firms or have previously completed a spinout from an investment banking firm: [defunct] ^ Defunct banking institution Notable private equity firms[edit] The following is a list of notable private equity firms:[2] See also[edit] Related lists[edit] Other lists[edit] References[edit] Jump up ^ [1].
Discounted cash flow In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs)—the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question. Present value may also be expressed as a number of years' purchase of the future undiscounted annual cash flows expected to arise. Discounted cash flow analysis is widely used in investment finance, real estate development, corporate financial management and patent valuation. Discount rate[edit] The most widely used method of discounting is exponential discounting, which values future cash flows as "how much money would have to be invested currently, at a given rate of return, to yield the cash flow in future." History[edit] Mathematics[edit] Discounted cash flows[edit] where Continuous cash flows[edit]
Private equity secondary market - Wiki In finance, the private equity secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds. Sellers of private equity investments sell not only the investments in the fund but also their remaining unfunded commitments to the funds. By its nature, the private equity asset class is illiquid, intended to be a long-term investment for buy-and-hold investors. For the vast majority of private equity investments, there is no listed public market; however, there is a robust and maturing secondary market available for sellers of private equity assets. Driven by strong demand for private equity exposure, a significant amount of capital has been committed to dedicated secondary market funds from investors looking to increase and diversify their private equity exposure. Secondary market participants[edit] Types of secondary transactions[edit] History[edit]
Limited partnership A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs). It is a partnership in which only one partner is required to be a general partner.[1] The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the right to use partnership property, share the profits of the firm in predefined proportions, and have joint and several liability for the debts of the partnership. As in a general partnership, the GPs have actual authority, as agents of the firm, to bind all the other partners in contracts with third parties that are in the ordinary course of the partnership's business. Background of limited liability[edit] Like shareholders in a corporation, limited partners have limited liability. LP members are subject to the same alter-ego piercing theories as corporate shareholders.
Venture capital In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value). Venture capital is also associated with job creation (accounting for 2% of US GDP),[2] the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the USA, and 600–800 get venture capital funding. History[edit] Origins of modern private equity[edit] J.H. Early venture capital and the growth of Silicon Valley[edit]
Have you created your customer pipeline? If you’re going to succeed in bringing in more employer business and more new employer business, too, you'll need to differentiate your list of customers and potential customers. A good way of doing this is to think about employers as making a journey through your customer pipeline. Customers enter the pipeline via a wide funnel. They then travel along the pipeline. However, you need to know where employers are in the pipeline to help you to decide how to manage your relationship with them. You deal with employers in different ways depending on where they are in your pipeline.You allocate differing amounts to resource to managing your relationship with them when they are at different points in the pipeline.In marketing terms the employer enters your pipeline as a suspect. When you know more about the employer and you think there is a possibility of doing business with him or her, then the suspect becomes a prospect. As you build the relationship the customer becomes a client.
Incentive stock option Incentive stock options (ISOs), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit. ISOs are also sometimes referred to as incentive share options or Qualified Stock Options by IRS [1] . The tax benefit is that on exercise the individual does not have to pay ordinary income tax (nor employment taxes) on the difference between the exercise price and the fair market value of the shares issued (however, the holder may have to pay U.S. alternative minimum tax instead). Instead, if the shares are held for 1 year from the date of exercise and 2 years from the date of grant, then the profit (if any) made on sale of the shares is taxed as long-term capital gain. Long-term capital gain is taxed in the U.S. at lower rates than ordinary income. Additionally, there are several other restrictions which have to be met (by the employer or employee) in order to qualify the compensatory stock option as an ISO. See also[edit] References[edit]
Share Incentive Plan The Share Incentive Plan (the ‘SIP’) was first introduced in the UK in 2000. SIP's are an HMRC (Her Majesty's Revenue & Customs) approved, tax efficient all employee plan, which provides companies with the flexibility to tailor the plan to meet their business needs. SIPs are becoming increasingly popular with companies that want to engage their workforce and recruit and retain key employees. From 6 April 2014, HMRC approval will no longer be required for a SIP to obtain tax benefits, instead an employer is required to self certify that the SIP meets the requirements of the relevant legislation. Accordingly from 6 April 2014, a SIP should no longer be referred to as an HMRC approved plan. There are 4 main elements to the SIP from which companies can choose to use one or more of the following: • Free Shares • Partnership Shares • Matching Shares • Dividend Shares Free Shares[edit] Partnership Shares[edit] Contributions from salary can be accumulated for a period of up to 12 months. Sharesave
Leveraged buyout A leveraged buyout (LBO) is when a company or single asset (e.g., a real estate property) is purchased with a combination of equity and significant amounts of borrowed money, structured in such a way that the target's cash flows or assets are used as the collateral (or "leverage") to secure and repay the money borrowed to purchase the target-company/asset. Since the debt (be it senior or mezzanine) has a lower cost of capital (until bankruptcy risk reaches a level threatening to the lender[s]) than the equity, the returns on the equity increase as the amount of borrowed money does until the perfect capital structure is reached. As a result, the debt effectively serves as a lever to increase returns-on-investment. LBOs are a very common occurrence in today's "Mergers and Acquisitions" (M&A) environment. The term LBO is usually employed when a financial sponsor acquires a company. Diagram of the basic structure of a generic leveraged buyout transaction Characteristics[edit] History[edit]
K-factor (marketing) In viral marketing, the K-factor can be used to describe the growth rate of websites or apps.[1] The formula is roughly as follows: (e.g. if each new customer invites five friends, i = 5) (e.g. if one in five invitees convert to new users, c = .2) This usage is borrowed from the medical field of epidemiology in which a virus having a k-factor of 1 is in a "steady" state of neither growth nor decline, while a k-factor greater than 1 indicates exponential growth and a k-factor less than 1 indicates exponential decline.