See Also: Mezzanine Debt Financing (Mezzanine Loans) Collateralized Debt Obligations Outstanding Debt Self-Liquidating Loans Loan Term What Your Banker Wants You to Know Alternative Forms of Financing Subordinated Debt Definition Subordinated debt is a security which has a residual claim upon a company’s assets, after the senior debt holders have had their claims satisfied. Meaning
See Also: Make-or-Buy Business Decision Company Life Cycle Company Valuation Return on Equity Financial Ratios Joint Venture (JV) Accretion Mergers and Acquisitions Basics Mergers and acquisitions (M&A) refer to the buying, selling, and combining of companies. In an M&A deal, two companies become one. M&A deals are typically facilitated by investment bankers. Before going through
See Also: Restructuring Expense ProForma Financial Statements Nonrecurring Items In accounting, report abnormal or infrequent gains or losses in the company’s annual report as nonrecurring items. They are rare events or activities that are not part of the company’s normal business operations. They may also be called extraordinary items. You must disclose the details of
See Also: Current Assets Financial Assets Fixed Assets Goodwill Accounting Term Research and Development Intangible Assets Definition An intangible asset is a right or non-physical resource of a company. They are usually developed as a result of an acquisition that has been made, or years of research and development to develop a process or idea.
Golden Parachute A golden parachute refers to a generous compensation package promised to a senior executive in the event that the executive leaves the company. It is a contractual agreement between the company and the employee. The contract stipulates the conditions under which the executive will receive it. Some of the conditions may include the
See Also: Vertical Integration Business Intelligence and Finance Business Cycle Manufacturing Cost Economic Production Run (EPR) Horizontal Integration Definition Horizontal integration means that a company contains control over one part of the production process by controlling the majority or all of the resources at that particular junction of production. Explanation of Horizontal Integration Horizontal integration’s
See Also: Basis Points Make or Buy Business Decision Collateralized Debt Obligations Carried Interests Letter of Credit Basis Definition In accounting, the basis definition is the value of an asset for tax purposes. The basis of an asset is the cost of the asset reported to the Internal Revenue Service (IRS). It includes the original purchase price of the asset
See Also: Capital Structure Management Capital Expenditures Working Capital Cost of Capital Business Plan Acquisition Capital Definition When a business decides to grow, you need acquisition capital. Define acquisition capital as the capital used to acquire other assets. You use this capital to purchase assets like equipment, inventory, software, or even a business itself. The
Today I attended a speech by Thomas Ryan, CEO of Service Corporation International (SCI). Though Mr Ryan covered several topics, one topic in particular interested me. He spoke to what he considered the keys to profitable growth. As you will recall, SCI was one of the original “roll up” firms focusing on the funeral industry.