investment

Tag: investment

Changing Markets Affect on Valuations

Economics back in January 2021 Back in early 2021 there were certain signs that the economy was going to change in some way, and many predicted this change would not be positive.  Post Pandemic in January 2021 the U.S. Government continued to pour billions of dollars into the economy by printing more money. Economics 101

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Selling Your Business & the Value of Accounting Records

M&A Current Environment 2020 and 2021 have been record years for mergers and acquisitions (M&A) despite COVID19.  Liquidity in the marketplace, abundance of retiring baby boomers, and low interest rates continue to fuel the M&A market.   This seller’s market has allowed multiples for selling businesses to remain at high levels.  Investment bankers representing sellers are

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Return on Investment (ROI)

See Also: Return on Invested Capital (ROIC) Return on Common Equity Internal Rate of Return Method Return on Investment (ROI) Definition Return on investment (ROI) is the ratio of profit made in a financial year as a percentage of an investment. In other words, ROI reveals the overall benefit (return) of an investment using the

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Hiring an Investment Banker?

Since the economic recession that started in 2007, many people have perceived investment bankers negatively. The recession was caused in great part by the careless and unwise actions of investment banks and their regulators. Despite the negative impression people have of investment bankers, they are extremely beneficial for the economy and for individuals and companies

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What is Investment Banking?

See also: What Your Banker Wants You To Know Alternative Forms of Banking Debt Compliance 101: Keep Your Banker Happy Manage Your Banking Relationship What is Investment Banking? What is investment banking? In this article, you will learn the investment banking definition, about investment bank analysts, about investment bankers as executors, and examples of investment

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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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Return on Invested Capital (ROIC)

See Also: Return on Equity Analysis Required Rate of Return Return on Asset Analysis Financial Ratios Weighted Average Cost of Capital (WACC) Return on Capital Employed (ROCE) Return on Invested Capital (ROIC) Definition The return on invested capital (ROIC) is the percentage amount that a company is making for every percentage point over the Cost

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What is Compound Interest?

See Also: Effective Rate of Interest Calculation When is Interest Rate Not as Important in Selecting a Loan? Interest Expense Nominal Interest Rate Interest Rate Swaps What is Compound Interest? Compound interest is interest earned on the principal plus interest earned on prior interest. Compounding interest rates not only earn interest on the original money,

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What is a Term Sheet?

See Also: Other Peoples Money Angel Investor Venture Capital 5 Cs of Credit Working Capital What is a Term Sheet? What is a term sheet? It contains the terms of an investment made by a venture capital firm. It is a summary of the legal and financial terms of a proposed deal. Basically it is a

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What is a Bond?

What is a bond? It is a corporate or government debt instrument. It represents a loan to the company from the investing public. In this case, the company is the borrower and the investor is the lender. Companies issue bonds to raise money for business investments. What is a Bond? A bond has a par value,

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Yield Curves

See Also: What is a Bond? Yield to Maturity Coupon Rate Bond Par Value of a Bond Zero Coupon Bonds Yield Curves Definition In the field of finance, yield curves represent the relationship between the yields on bonds of similar credit quality that have differing maturity dates. Many commonly use the yield curve plotting U.S.

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Trade Finance

See Also: Trade Credit Trade Account Exchange Traded Funds Currency Exchange Rates Currency Swap Trade Finance Definition Trade Finance is the movement of assets, transactions, or investments overseas into other markets. To ensure the safety of a purchaser or seller trade finance, banks often provide a needed service to make the transactions as meaningful and

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