An investor who will never tell you no, but will wait for a lead investor to commit so he can take a backseat and ride the return train. They always tell you to keep them informed with your project without ever providing active help.
I thought Cody would be a generous investor after his company got acquired, but instead he's just another backseat investor waiting for a bigger fish to bite.
A bank's promise that it will finance a company's takeover bid and not help the other bidders.
Let's say Company XYZ wants to buy Company ABC. Three other companies are also interested in purchasing Company ABC. Company XYZ wants to borrow most of the money for the acquisition offer. It goes to Bank DEF for the money, but it engages in bankmail. That is, it negotiates a deal in which Bank DEF, which is the largest in the country, will lend Company XYZ the money for the deal and that it will not lend money to the other three companies for the deal. In this way, Company XYZ effectively shuts off a source of capital to the other bidders.
A legal process under which a borrower protects and/or liquidates assets in order to repay debts.
Despite facing dire financial straits since losing his job six months earlier, Carl still thought of bankruptcy as a distant last resort.
An act of trading goods or services between two or more parties without the use of money (or a monetary medium, such as a credit card). In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.
The barter system enables two parties to exchange goods or services based on mutually perceived value. To illustrate, a plumber can fix a baker’s sink, for which the baker would normally have paid $100 for the service. Instead, the baker gives the plumber $100 worth of his baked goods.
is the practice of comparing actual performance results with a standard performance goal or number – a benchmark. Benchmarking is generally used in business for setting budgetary and financial performance goals.
For example, benchmarks could be used to compare processes in one retail store with those in another store in the same chain.
Is any person who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will or life insurance policy.
For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
A nationally recognized, well-established, and financially trustworthy company.
Blue chip companies have built a reputable brand over the years and the fact that they have survived multiple downturns in the economy makes them stable companies to have in a portfolio.
The number of individuals who visit a page of your site and leave without clicking on anything before proceeding onward to another page on your site.
Xerox takes a “Challenger Sale” approach to bottom-of-the-funnel content, creating pitch decks using insights that push prospects to think differently about their business.
the rate at which a new company spends its initial capital not having got any profit.
Let's assume newly formed Biotech Company ABC has just been granted venture capital (VC) funds to pursue a groundbreaking new drug. The VC firm gives ABC a certain number of years to reach breakeven or even become profitable. If Biotech Company ABC is spending $100,000 per month beyond what they are bringing in, they have a burn rate of $100,000 per month or $1.2 million ($100,000 x 12 months) per year. The VC firm knows that it will need to provide enough cash to cover that shortfall each period.
A term used when you take ownership of another business in order to expand your business or diversify your business holdings. This word if frequently used in conjunction with the word merger, as in mergers and acquisitions.
When a target company is acquired by another company, the target company ceases to exist in a legal sense and becomes part of the purchasing company. Acquisitions are commonly made by using cash or debt to purchase outstanding stock, but companies can also use their own stock by exchanging it for the target firm's stock. Acquisitions can be either hostile or friendly.
An organization that invests in small- and medium-size companies as well as distressed companies. A BDC helps the small- and medium-sized firms grow in the initial stages of their development.
When looking for prospective small business, a BDC does not invest in just any company -- its goal is to invest in and provide guidance to those that will one day grow large. As such, a BDC also looks for a business where it can exert significant control over the company's direction.
Is a general term that describes work that supports a business but does not produce a tangible commodity. Business services are services that are primarily sold to organizations.
The following are illustrative examples of business services: computing, networks & communications, managent, software, professional services, consulting, training, finance, insurance, travel, events, food, marketing, research, media, distribution, supply, printing & prototyping, production, engineering, design, utilities, real estate, quality of life, logistics, waste management.
An organization that takes part and assists in purchasing and sales of companies .
Business brokers have relationships with people seeking to buy businesses as well as those seeking to sell. They also know how to market a business for sale. Business brokers are paid through commissions based on a percentage, typically 10% to 15%, of the sale price they secure for the company.
Is a type of business model where exchange of goods and services takes place between two or more businesses. The consumer, usually isn’t involved in these types of models and come into play only at a later stage.
B2B ecommerce examples you may be familiar with include the ExxonMobil Corporation and the Chevron Corporation, Boeing, and Archer Daniel Midlands. These businesses have custom, enterprise ecommerce platforms that work directly with other businesses in a closed environment. A B2B ecommerce business typically requires more startup cash.
A vital business unit, famously known as SBU, is a completely utilitarian unit of a business that has its own vision and course. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. It reports to the headquarters about its operational status.
There are many great examples of SBUs that we can relate to. For instance, General Electric has 49 SBUs in such markets as appliances, aerospace, electronics, and so on. LG operates along the same lines, with SBUs competing in electronics and appliances, among others.
An acquisition of a controlling interest in a company. The term is used synonymously with the term acquisition. Buyouts often occur when a company is going private.
In 2007, Blackstone Group bought Hilton Hotels for $26 billion through an LBO. Blackstone put up $5.5 billion in cash and financed $20.5 billion in debt. Before the financial crisis of 2009, Hilton had issues with declining cash flows and revenues. Hilton later refinanced at lower interest rates and improved operations. Blackstone sold Hilton for a profit of almost $10 billion.