12Mar/12Off
No hard rules to estimate loan costs
There are no hard and fast rules to determine which businesses VCs and banks will support in a traditional MBO. Investment fashions are subject to change, whilst each financial institution will have its own particular investment policy. However, as a generalisation, VCs will consider a business that has the following attributes:
- A reasonable asking price arrived at through an acceptable valuation method.
- High growth potential, supported by a professionally produced business plan and a trading record that supports the financial projections.
- In a high tech sector, such as medical and related industries.
- Acceptable CEO supported by suitably competent and entrepreneurial management that is prepared to invest some of its own money in the buy-out.
- The ability to borrow against its own assets.
- Feasible exit strategy, preferably through a flotation or a secondary sale, within five to seven years.
About Me
Hello! My name is Barbara Howard. I am a graduate from University of Pennsylvania and a certified finance assistant. So far I shared my knowledge and experience in form of published books and articles, but recently I discovered blogging, and thus I prepared this website so that you can learn the basics of money management and responsible credit taking as well. Hope you enjoy the lecture!Recent Posts
- Payday loans reflect your financial abilities
- Payday loan is a mechanism hard to break
- Make credit decisions based only on solid data
- When you don’t trust a credit, demand proof
- Consider only the important aspects of a loan
- No hard rules to estimate loan costs
- Planning for a credit management success
- Looking for correct credit qualifications
- Find out your loan specifically to suit your needs
- Strategic credit options should be your asset