private equity

Tag: private equity

Selling Your Business to a Private Equity Group

Private Equity companies are companies that have raised capital from investors and they have created funds. Each fund may have its own legal mandate. These are common examples of mandates: Invests only in oil and gas companies Is agnostic to what industry it invests in Invests only in companies it controls Private Equity companies come

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Limited Liability Company (LLC)

See Also: S Corporation General Partnership Limited Partnership Partnership Sole Proprietorship Role of a Company Back Office Limited Liability Company (LLC) Definition A Limited Liability Company or LLC is a business form which provides limited liability much like a corporation. There can be an unlimited number of members to the company. There are also many

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Alternative Forms of Financing

It happens all the time. Companies need capital, but they aren’t bankable. Banks or other financial institutions will not touch them because they are either too risky, not able to meet covenants, or it just doesn’t work out for some reason. So, where do those companies go? They need to look at alternative forms of

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What Your Banker Wants You To Know

In small or large businesses, we often end up dealing with banks and bankers beyond the checking account. When you have debt with your bank (your lender), the relationship takes on another dynamic. The typical loan agreement for traditional debt includes loan amount, terms, collateral provided, the covenants you must live by, and the dos

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Don’t get caught swimming naked!

Has anyone ever warned you, “don’t get caught swimming naked”? It may sound strange, but it’s a reference to Warren Buffet’s famous quote “Only when the tide goes out do you discover who’s been swimming naked”. As a financial leader, it is your responsibility to know when the tide is going out so that you can prepare not to

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3 Myths about Private Equity Investors

Myths about private equity can inhibit entrepreneurs from pursuing business opportunities and making rational decisions.  Private equity financing is a complex decision for business owners.  These owners should analyze other financing options and goals for future growth of the company before making important investment decisions. 3 Myths about Private Equity Investors Here are three myths about

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Venture Capital

See Also: Every Business Has A Funding Source, Few Have A Lender Don’t Tell Your Lender Everything Due Diligence on Lenders The Relationship With Your Lender What Does A Lender Want To Know? Venture Capital Definition The Venture Capital definition is a funding source for start-up businesses or turnaround businesses. There is typically more risk

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Mezzanine Financing

See Also: External Sources of Cash What Does A Lender Want To Know Finding The Right Lender Due Diligence on Lenders Weighted Average Cost of Capital (WACC) Mezzanine Financing A mezzanine lender, provider of mezzanine financing, functions similar to a bank in terms of providing a source of capital for companies. They get their capital

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External Sources of Cash

See Also: Angel Investor Categories of Banks Commercial Paper Common Stock Convertible Debt Instrument Venture Capital External Sources of Cash In another article, I told you about Sue and generating cash from sources within her business. I will not detail her entire story at this time, but will tell you that we were successful in

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Carried Interests

See Also: Hedge Funds Venture Capital Current Expenditures How to Compensate Sales Staff Indirect Labor Carried Interests Definition What are carried interests? The carried interests definition is a portion of an investment fund’s annual profit that is given to the fund manager at the end of the year. Carried interests are designed to incentivize to the

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Recapitalizing Your Company Using Mezzanine Financing

Recapitalizing Your Company Using Mezzanine Financing “There comes a time in every company’s life cycle when the company and/or the entrepreneur need some more cash. Perhaps the company needs more working capital or some additional money to help fund an expansion. Or, maybe the entrepreneur feels that it’s time to reap the benefit of all

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