Robert T. Slee

Private Capital Markets, + Website

Valuation, Capitalization, and Transfer of Private Business Interests

• Gebundenes Buch

Produktbeschreibung

The private capital markets are the venue where debt and private equity investments are made, and private business interests are exchanged. Valuation is the common language uniting them, enabling participants in private capital markets to communicate and exchange interests. Written for CEOs, CFOs, business appraisers, lawyers, and venture capitalists, this book introduces private capital market theory as an integrated body of knowledge for the valuation, capitalization, and transfer of private companies, especially those with annual revenue between $5 million to $150 million.

Produktdetails

• Verlag: Wiley & Sons
• 2. Aufl.
• Seitenzahl: 640
• Erscheinungstermin: 31. Mai 2011
• Englisch
• Abmessung: 286mm x 221mm x 38mm
• Gewicht: 1740g
• ISBN-13: 9780470928325
• ISBN-10: 0470928328
• Artikelnr.: 32894276

Autorenporträt

ROBERT T. SLEE, CBA, CM&AA, is President of Robertson & Foley, an investment banking firm that provides valuation, capital raising, and transfer advisory services to middle market companies. He speaks extensively on value creation for private businesses.

Inhaltsangabe

Foreword. Preface. Acknowledgement. Chapter 1 Capital Markets. Market
Structure. Information. Why Are Markets Segmented? Chapter 2 Middle-Market
Finance. Middle-Market Finance Theory. Triadic Logic. Middle-Market Finance
Theory in Practice. Owner Motives. Authority. Triangulation. Part One
Business Valuation. Chapter 3 Private Business Valuation: Introduction.
Private Investor Expectations Drive Private Valuation. Private Business
Valuation Can Be Viewed through Value Worlds. Valuation as a Range Concept.
Triangulation. Chapter 4 Market Value. Levels of Private Ownership.
Triangulation. Chapter 5 Asset Subworld of Market Value. Steps to Derive
Net Asset Value. Triangulation. Chapter 6 Financial Subworld of Market
Value. Specific Investor Return. Industry Specific Return. General Investor
Returns. Triangulation. Chapter 7 Synergy Subworld of Market Value.
Synergies. Capitalization of Benefit Streams. Discounting of Benefit
Streams. Seller/Buyer Market Valuation. Non-Enterprise Market Valuations.
Triangulation. Chapter 8 Fair Market Value. Appraisal Organizations.
Business Appraisal Standards. Fair Market Value Process. Key Steps to
Derive Fair Market Value. Does the Fair Market Value Process Make Sense?
Tearing Down the Build-Up Models. Triangulation. Chapter 9 Fair Value.
Dissenting and Oppressed Shareholders. Triggering Events. Determination of
Fair Value. Triangulation. Chapter 10 Incremental Business Value. Nature of
Incremental Business Value. Problems with Using Traditional Methods.
Value-Based Approaches. Net Present Value. Incremental Business Value.
Private Cost of Capital Model. Ramifications of Using PCOC. Investment.
Project Decision Making. Problems with Incremental Business Value. Value
Creation Strategies. Increase Recast EBITDA. Reduce Risk. Employ High
Yielding Capital. Incremental Business Value versus Market Value.
Triangulation. Chapter 11 Insurable Value. Risk and Insurance. Buy/Sell
Agreements. Valuation Mechanics. Triggering Events. Key Person Insurance.
Business Interruption. Triangulation. Chapter 12 FASB Value Worlds. FASB
Fair Value (ASC 820, formerly FAS 157). Business Combinations (ASC 805,
formerly FAS 141R). Impaired Goodwill (ASC 350-20). Triangulation. Chapter
13 Intangible Asset Value. Subworlds. Intellectual Property. Intellectual
Capital. Triangulation. Chapter 14 Other Value Worlds . Investment Value
World. Owner Value World. Collateral Value World. Early Equity Value World.
Bankruptcy Value World. Public Value World. Triangulation. Chapter 15
Private Business Valuation: Conclusion. Private Investor Return
Expectations. Value Worlds. Private Business Valuation is a Range Concept.
Triangulation. Final Thoughts on Valuation. Part Two Capital Structure.
Chapter 16 Capital Structure: Introduction. Public Capital Markets. Private
Capital Markets. Pepperdine Private Capital Market Line. Key Issues
Regarding the Pepperdine Private Capital Market Line. Capital Structure
Treatment. Triangulation. Chapter 17 Bank Lending. Types of Facilities.
Interest Rates. Interest Rate Hedges. Loan Covenants. How Banks Deal With
Covenant Violations. Loan Costs. Risk Ratings. Negotiating Points.
Triangulation. Chapter 18 Government Lending Programs. Industrial Revenue
Bonds. Business and Industry Loan Program. Small Business Administration
Programs. 7(a) Loan Guaranty Program. Certified Development Company 504
Loan Program. CAPLines Loan Program. Export Working Capital Program.
Negotiating Points. Triangulation. Chapter 19 Equipment Leasing. Types of
Leases. Lease Rate Factors. Lessor Types. Comparison of Leasing and
Purchasing. Negotiating Points. Triangulation. Chapter 20 Asset-Based
Lending. How Asset-Based Lending Works. Asset-Based Lenders. Tier 1
Asset-Based Lenders. Tier 2 Asset-Based Lenders. Tier 3 Asset-Based
Lenders. Negotiating Points. Triangulation. Chapter 21 Factoring. How
Factoring Works. Mechanics of Factoring. Fees and Terms. Negotiating
Points. Triangulation. Chapter 22 Mezzanine Capital. Loan Structure.
Mezzanine Investors. Targeted Investments. Pricing. Debt Mezzanine Capital.
Equity Mezzanine Capital. Other Deal Terms. Negotiating Points.
Triangulation. Chapter 23 Owners, Angels, and Venture Capitalists. Stages
of Private Equity Investor Involvement. Private Placements. Financial Barn
Raisings. Within Existing Business Relationships. Why Private Placements
Fail. Pre- and Postmoney Valuation. Negotiating Points. Triangulation.
Chapter 24 Private Equity. Stages of Private Equity Investor Involvement.
Hedge Funds. Family Offices. Term Sheet. Negotiating Points. Triangulation.
Chapter 25 Capital Structure: Conclusion. Capital Providers Manage Risk and
Return in Their Portfolios. The Pepperdine Private Capital Market Line
Comprises Expected Returns. Private Cost of Capital Emanates from the
Private Capital Markets. High Cost of Capital Limits Private Company Value
Creation. Intermediation Is Relatively Ineffective in the Middle Market.
Triangulation. Part Three Business Transfer. Chapter 26 Business Transfer:
Introduction. Public Manager and Owner Motives. Private Business Ownership
Transfer Spectrum. Employee Transfer Channel. Charitable Trusts Transfer
Channel. Family Transfer Channel. Co-Owner Transfer Channel. Outside,
Retire, Transfer Channel. Outside, Continue, Transfer Channel. Going
Public, Going Private Transfer Channel. Exit Planning. Triangulation.
Chapter 27 Employee Stock Ownership Plans. Overview. Leveraged ESOPs. ESOPs
in S Corporations. Setting Up an ESOP. Points to Consider. Bottom Line on
ESOPs. Triangulation. Chapter 28 Management Transfers. Differences between
Management Buyouts and Management Buyins. Likely Deal Structures. Deals.
Points to Consider. Triangulation. Chapter 29 Charitable Trusts. Structure
of Charitable Trusts. Charitable Remainder Trusts. Points to Consider for
CRTs. Charitable Lead Trusts. Points to Consider for CLTs. Comparison of
CRTs and CLTs. Triangulation. Chapter 30 Family Transfers. Stock Gifts.
Private Annuities. Self-Canceling Installment Notes. Grantor Retained
Annuity Trusts. Family Limited Partnerships. Intentionally Defective
Grantor Trusts. Comparison of Family Transfer Methods. Role of Insurance in
Family Transfers. Triangulation. Chapter 31 Co-Owner Transfers. Buy/Sell
Agreements. Buy/Sell Types. Triggering Events. Funding Techniques. Ways to
Handle Deadlocks. When No Buy/Sell Agreement Exists. Triangulation. Chapter
32 Outside Transfers: Retire. Preparation for a Transfer. Transfer Players.
Marketing Processes. Negotiated Transfers. Private Auctions. Two-Step
Private Auctions. Closing the Deal. After the Transfer. Triangulation.
Chapter 33 Outside Transfers: Continue. Consolidations. Roll-Ups. Buy and
Build or Recapitalizations. Recapitalization Points to Consider.
Triangulation. Chapter 34 Going Public, Going Private. Direct Public
Offerings. Which Companies Are Public? Initial Public Offering Team. IPO
Process. Advantages of Going Public. Disadvantages of Going Public. Going
Public Key Points to Consider. Going Public on Foreign Exchanges. Reverse
Mergers. Going Private. Going Private Key Points to Consider.
Triangulation. Chapter 35 Business Transfer: Conclusion. Segmented Transfer
Activity and Arbitrage. Owner Motives Choose the Range of Values. Creating
Value in a Private Business Requires Planning. Triangulation. Chapter 36
Conclusion. Theme 1. Theme 2. Theme 3. Theme 4. Theme 5. Private Capital
Markets. What We Do Not Know. A Final Thought. Appendix A Corporate Finance
Theory: Application to Private Capital Markets. Appendix B Principle of
Substitution www.wiley.com//go/privatecapital. Appendix C IBA Standards:
Business Appraisals Standards www.wiley.com//go/privatecapital. Appendix D
Private Equity Securities www.wiley.com//go/privatecapital. Appendix E
Sample Preferred Stock Offering Term Sheet
www.wiley.com//go/privatecapital. Appendix F Private Placements
www.wiley.com//go/privatecapital. Appendix G Sample Management Buyout
Letter of Intent www.wiley.com//go.privatecapital. About the Web Site.
Index.