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Asia Investment Banking - Activity In the last decade, Corporate Finance activity has grown exponentially in the Asia and Asia Pacific region. This is driven by increased regulation, and thus a safer investing climate for global investors. With this, businesses across industries are able to tap onto advisory and capital raising capabilities of the global banks. We even see local banks such as Japan's Nomura taking international limelight as they took over Lehman's investment banking business during the recent economic crisis. Many companies in China are also highly under-leveraged and have had organic growth over decades. They are now gradually tapping onto new capital through debt and equity...

In the world of finance and economics there are two broad types of leverage that can be used to enhance return on equity: financial leverage and operating leverage. In the domain of finance, equity capital is by far the scarcest for individuals and corporations. Most people and businesses cannot finance all of their needs and requirements with equity alone - there just isn't enough to cover every project or initiative. This is when the use of debt comes in, such as in the way you finance the purchase of your home. You make a down payment using your equity and take out a mortgage for the difference with the house earmarked by the lender as the collateral, or security for the loan. The conventional...

ign="center"> Until a few years back, domestic companies faced lot of difficulties in raising capital for their business operations. This prompted many leading Indian companies no alternative but to access the foreign markets for funding their capital needs by issuing securities like the American Depository Receipts or ADRs in markets outside India. The QIP process was launched by the SEBI in order to encourage Indian companies to access funds domestically without any difficulty. What is Qualified Institutional Placement? When a listed company issues equity shares or fully and partly convertible debentures or any securities other than convertible warrants to a Qualified Institutional Buyer, the...

A Franchise System can be a very effective way to open and operate a small business, especially for those without a lot of experience in operating and owning their own business. There are many advantages in using a Franchise System, such as, turn-key operations, marketing and business planning; large corporate support; lower learning curve; established accounting, cost control and management systems; brand identification; training programs; national and regional advertising; customer service programs; market trend responsiveness; supplier and vendor discounts; among others. However successful Franchise Systems are expensive. The fees / costs consist of a franchise fee, royalty fees and start-up...

A global investment bank's business thrives on doing deals. Global investment banking entails raising capital such as debt or equity for their clients as well as advising on a customer's possible merger and acquisition transactions. On top of that, global investment banks also market securities such as stocks, bonds, and treasury bills to their institutional investors. These international investment banks actually trade for their respective accounts. There are numerous existing investment banks that are also involved in the management of third-party assets. International investment banking involves various departments such as the departments of debt capital market, equity capital market, asset...

Institutional real estate investors buy, develop, manage and sell real estate assets with an aim to achieve superior returns while abating risk by holding a portfolio of properties. These firms include real estate investment trusts (REITs), private equity firms, hedge funds, various joint venture partnerships and other funds raised for this purpose. INVESTMENT INTERESTS While many real estate investment firms have target sector interests such as commercial, industrial, office, retail, residential, raw land, financial securities and healthcare related real estate, many firms are sector agnostic and invest on an opportunistic basis. DEAL STRUCTURE Institutional real estate investors often employ a...

As a small business owner, you must have knowledge of various financial issues and investment options. In the primary and secondary markets, you must have come across the term LBO, or Leveraged Buyout, several times. You may perhaps know what leveraged buyout is, but you may not have enough knowledge about its working. So, as an investor as well as a businessman, have a look at LBO and its various aspects. Leveraged Buyout- What Is This? A typical dictionary definition of this term is "a debt-financed transaction, usually via bank loans and bonds, which aims at taking a public corporation private." In simple terms, a LBO takes place when a financial supporter gets control over a majority of a...

You may have heard about all the glamor and excitement of these "money-making machines", but what exactly are investment banks and what do they do? Here is a practical guide for those interested in the investment banking careers. In a nutshell, investment banks are financial institutions that advise and execute various financial instruments to optimize the financial efficiencies of corporations. A typical investment bank has 3 arms: Corporate Finance, Sales and Trading, and Research, each with different but complementary roles. 1. Corporate finance is what usually known as the core investment banking and offer the following services to corporate clients: - Capital raising (issuing equities and debts...

The economy continues to dominate news headlines on a daily basis. The stock markets are extremely volatile, and even the most seasoned economists and financial experts remain at a loss for predicting when things will start to change for the better. As a result, many businesses have had to adjust their projections, lenders continue to place more scrutiny on borrowers, and the consumer is more cautious. The business valuation community has had to respond to this turbulent environment as well, and analysts have had to pay special attention to the fluctuating market conditions when valuing an ongoing business enterprise. For example, if an analyst has decided to prepare a valuation of a company based...

Long term investment in shares- the sure way to make money-returns better than Banks. This is for those who want to invest their hard earned money in shares on a long term basis. There are lot of facts to be considered to predict the market. Any shrewd investor should do his homework on the industry in which he is going to buy shares from the market. The industry will have its ups and downs. This has to be taken into account. Some external factors and events will also effect the performance of the industry as a whole.So, prudent as you are, choose a few industries in which you have some basic knowledge and study them for at least 6 months, when you have a considered opinion about that industry,make...

Leveraged Buyout (LBO) has been in the news recently which said that, Corus - an Anglo-Dutch company would be taken over by TATA - an Indian company. Being a relatively new business concept for us, this Article aims to highlight what 'LBO' is all about, its advantages and disadvantages. It cannot be ruled out that, India Inc. may have to see take-overs in the form of LBOs, amidst Globalisation. What does LBO actually mean technically? Simply put - it is the purchase of a company by using a small investment and a large loan. The new owner would gain control with a small amount of invested capital because he or she is able to secure a large loan for the balance of the amount needed. A leveraged...

Acquisition/Investment in Indian Companies by Foreign & Domestic Investors - Six Steps Mantra Joint ventures, strategic alliances and acquisitions are the flavor of the day that enable fast growth focused companies to have rapid inorganic growth and expansion in new sectors. However, prior to engaging in a joint venture relationship or acquisition of an operating Indian company ("Investee company"), either by way of private placement, or secondary market, or subscription of substantial equity share capital, it is advisable for the Investor to carefully and stringently undertake the following six step mantra to avoid future surprises and heartburns: (i) Due Diligence/Operations Audit: Extensive...

As adherents to Joel Greenblatt's Magic Formula Investing strategy know, the formula boils investing down to two simple statistics: earnings yield and return on capital. Earnings yield is a measure of how cheap a company is against it's profits. Return on capital is a measure of how efficiently a company employs it's resources to generate those profits. When you put them together, they are the tangible statistics behind the simple strategy of buying good businesses (high return on capital) at low prices (high earnings yield). In this article, we will dive more into the return on capital figure and examine its importance and how it is calculated. So, what exactly does return on capital tell us? For...

"After heavy financial crunches in the economy, for a corporate entity, it is quite significant to have a perfect blend of various capital sources to ensure good returns and overcome from the depth of losses." Here, some crucial terms have been defined with reference to the financial system of a company: CAPITAL STRUCTURE The types of securities to be issued and proportionate amounts that make up the capitalization is known as capital structure or financial structure. Capital structure refers to the proportion of different kinds of securities issued by a company to raise long-term finance. Thus capital structure denotes: (1) the types of securities issued (equity shares, preference shares and...

The City of Horseshoe Bay successfully formed the Escondido Public Improvement District ("PID") and issued bonds successfully on September 29th, 2008. The bonds will fund approximately $5.475 million in public facilities, including streets, water and sewer facilities, storm drains, public parks, trails and landscaping facilities. The PID bonds will allow the developer to recoup eligible infrastructure costs before the first home closes, which will enhance profitability and greatly improve the internal rate of return for the project. Some additional advantages of PID financing include: 1. No TCEQ approval required; 2. No public bidding / prevailing wage requirement; 3. Almost all types of public...

The Forex markets are the international markets for the buying and selling of global currencies. Also known as the Foreign Exchange markets they are the largest and most liquid financial markets in the world with a turnover in excess of $4 trillion dollars per day. This is more than three times the amount traded on the all the global stock markets combined. What Is Traded On The Forex markets? The simple answer is money. Or more specifically international currencies. The act of Forex trading represents the simultaneous buying of one currency and the selling of another. Foreign Currencies are bought and sold through a Forex broker or dealer. On the Forex market currencies are quoted against each...

When the economy is struggling, the Fed lowers interest rates to encourage investment. There are two major downsides to this for consumers. 1. Inflation increases. As we have seen, the price of many goods has increased. Economics 101- As inflation increases, your purchasing power decreases, meaning you could now buy less with the same amount of money. 2. Lower interest rates encourage investment. If you are looking to borrow money, this is a great time to do so. The flip side is that if you're lending, you are getting a lower interest rate. And when you put money in your savings account you are doing just that, lending money to the bank. Savings accounts almost always pay very low interest...

Portfolio Management Services from Franklin Templeton India Bullish... bearish. Bearish... bullish. In a market so unpredictable, it makes sense to follow a regular investing approach rather than investing a lump sum. Franklin Templeton’s PROWESS—focuses on providing you with options which would aim at wealth accretion while minimizing the risk you assume to achieve the desired objective. The focus of PROWESS will be to identify attractive investment opportunities taking advantage of the disciplined approach to investing, which has been the hallmark of Franklin Templeton over the years. PROWESS brings you two products—FT select and FT Opportunities—each one mapped to suit a conservative or...

ign="center"> In development finance UK, a 100% development finance can sometimes be completed through mezzanine funding. While mezzanine funding has been a useful tool to complete funds for the project, its popularity have just increased in the recent years. Today, mezzanine funding has been widely used compared to other development finance UK such as equity finance, senior debt and high-yield bond. Mezzanine finance has been more appealing to investors and entrepreneurs alike and they are mostly used to sustain both the residential and commercial development finance. Being subordinated to senior debt, mezzanine finance companies can disregard the breaching of their senior debt leverage for...

Probably every investor's biggest wish is to be able to predict the direction of the market. However, the market is so forward looking that profitability does not exactly like in predicting market returns but often in predicting the economy itself. Imagine, for example, being able to forecast economic recovery and recessionary periods before regular investor's could. This could mean less loss (or even profitability) during market downturns by getting out or going short while others are still invested "long" and vice versa. In fact, with the S&P 500 returning 64.8% from March 9, 2009 until December 31, 2009 (or 19.7% for the entire year), knowing what the market forecasts for the economy...

There has been a lot of concern about the financial markets and where this economy is heading. Financial and commercial real estate cycles always repeat themselves. The tricky part is that no one knows when. Trying to time the markets is a combination of a little bit of skill and a lot of luck. Real estate borrowers that bear in mind the fundamentals of underwriting when lenders have less stringent criteria will also prevail in tougher credit markets as we are experiencing today. There are a couple of key criteria to follow when underwriting commercial real estate property and securing debt in any market. One of the first criteria is the Debt Service Coverage Ratio (DSCR). Providing a coverage of 1...

The word "investor" is quite a general term that means different things to different people. defines an investor as "someone who commits capital in order to gain financial returns". So what does this mean in terms of multifamily apartment investing? There are three types of investors: lending, equity and hybrid (or combination). Here is a breakdown of these three types of investors. A lending investor is someone who will loan you money on a real estate deal. You will pay them an interest rate and you retain 100% ownership of the property. You will pay them back on certain terms at a certain time. An equity investor is someone who will give you the money but they want a percent ownership in the...

When you are raising private money to buy real estate, you typically have a target number in mind for how much you need from investors. By performing a project budget and financial projections, you determine the right number. Perhaps you need $100,000 to buy and rehab a foreclosure house. Maybe you need $2,500,000 to buy a commercial building. Whatever number you think you need, write it down on paper. Now DOUBLE IT. That's right. DOUBLE IT. There's an old rule of thumb when it comes to raising capital: always ask for more money than you need. This is for two reasons: 1. Your numbers may not be 100% accurate Surprise! Yes, this does indeed happen sometimes. You plot and plan as carefully as you can...

One of my newsletter members recently asked if using a list broker was a good source of marketing leads to attract private lenders and, if so, how is it done. The answer is yes but with several precautions. Precautions It is important to understand that I strongly recommend that marketing for private lenders is done on a local and low key way. I do not recommend any sort of website advertising or newspaper advertising because it can be viewed as a solicitation to an unsophisticated investor and attract calls from your state's SEC. You do not want one of these calls! The SEC and state authorities monitor Craig's List and other similar bulletin boards for people doing unauthorized advertising for...

Despite some intensive searching online, I have been unable to locate a fact that I remember reading some months ago. The fact was this: 80 percent of private investors lose money in their direct investments. This is the secret that Wall Street does not want you to know. I guess it could be worse. I remember reading some years ago that 97 percent of all gamblers in the UK lose over time. There are several reasons for why the majority of investors lose money. The main one is almost certainly due to knowledge. Whilst it is not my intention to suggest that insider knowledge is used, it is hard to imagine that some unscrupulous traders are not involved. What is more important is that many or most...

Proponents of pooled funds argue that there is a great uncertainty on the stock market, and that it is dangerous for the private investor to play there, as they get prone to high losses and costs. Although there is a grain of truth in this, the argument for holding an investment in a unit trust or investment trust is just as good as that for holding equities. In the long term, returns from holding equities have outstripped returns from safer investments such as corporate bonds, gilts and deposits. In spite of these gains, the fact still remains that professional investors have some advantages over private investors. The advantages enjoyed by professionals span three main areas, namely: (i...

There is something very important to know when you're raising capital for your business: Under the Securities Act of 1933, to sell securities you must register them with the SEC or meet an exemption. Don't worry. It sounds a lot scarier than it really is. An exemption from securities registration doesn't mean that you get off scot free - you still have to make sure that you file the proper paperwork with the SEC and your state (if applicable). However, operating under an exemption from registration does mean less paperwork, lower filing fees and less ongoing reporting requirements. In other words: It's a good idea to raise private money using an exemption from securities registration. I know for...

When I first started raising private money, I had no idea that securities laws and offering documents were part of the process. It was one of those "live and learn" things that happen - where you suddenly realize that you need to do something yesterday. As a real estate investor, you're focus when raising private money is on marketing your opportunity, preparing your presentation for investors, meeting with investors and, of course running your business so that you can find deals that will be profitable for you and your investors. It's easy to relegate the paperwork part of raising private money to the 'back burner' - or, worse - completely ignore it. It's just a simple fact that there are rules...

Private funds and finding people who are able to provide private funding can have a dramatic impact upon your ability to succeed at building lasting wealth. Many people find that without some assistance, taking the first step towards long term financial security can be difficult. Achieving your investment goals can be a complicated process and traditional lenders may shy away from individuals who have a poor or little credit rating. Many individuals find that securing the necessary funds to make a solid start to building can made easier when they approach private individuals for funding. What are Private Funds Private funds are those financial resources that are made available through the private...

As I write this newsletter, the media is hawking the slow down in the real estate market. Most of the historically "hot" areas of the country are experiencing a 10% slow down in resales and new construction permits, with the Midwest being the positive exception. If new construction real estate speculation, based on rapid appreciation, was your game plan, you may now be rethinking your strategy. Perhaps it's time for not just a new strategy but a new game plan. Here's a thought for you. Instead of buying and selling real estate, what about being the Lender? A new light is being cast on the role of being the Lender instead of the owner of the property. Let's take a look at some of the options being...

Think of the world quilting and your mind will draw up a number of stylized and romantic images of women in early America sitting around a quilting bee, or at least contemporary women sitting around their own quilting frame either using hand quilting or sewing machines to relax and complete their quilting projects. However the fact is that quilting is a relaxing modern day hobby that all can enjoy, women and men alike; the most notable example of the latter being quilt collector Jonathan Holstein who sparked American interest in quilting again with his 1971 art exhibition "Abstract Design in American Quilts." Holstein's exhibit redefined quilting as art, and paved the way for what is commonly called...

While it might seem like an impossibility, it really is possible earn a billion dollars in 5 easy steps with only a $1,000 initial investment. First, you'll start by purchasing a used vehicle for $1,000. You'll want to look for people who are desperate for immediate cash and will sell you the car for well under what it's worth. If they're listing it at $2,000 but you know they need it gone now, offer $1,000 and stick to that price. You can then relist it for the full $2,000 value. Second, you'll take your $2,000 and do the same thing, reaching the $4,000 mark. You really need to get a good deal, so you can get below intrinsic value. Third, take that $4,000 and invest it in a down payment on a...

The most successful directors in the business have all learned the secret of effective pre-production...motion picture previsualization is the keystone of setting up a great film. From the first frame to the final fade, previz can organize and refine your artistic vision...and it's so easy to do. For decades, filmmakers have relied on different methods of "previz" to achieve their goals. Some of the most memorable films out there have been planned using unique tools and concepts that you can try, too! However, the methods of past decades are growing quite obsolete - technology is changing the face of previz... Previsualization can be simple and low-tech at the outset - you might want to start with a...

Plaintiffs tend to think that a lawsuit settlement loan is only for someone in the middle of financial hardship; however this is far from the truth. It's possible to use a lawsuit loan during your pending lawsuit as an investment tool. You can use the money in many different ways; however you should always know that any type of investment comes with risk. The benefit to the plaintiff is if they lose their lawsuit they aren't required to pay back the settlement loan, so if you lose both your case and your investment you would still be even at the end. However, if you win your case and lose your investment you are out the original investment amount. Make sure you understand the risks prior to applying...

I stumbled onto an online donnybrook at one of those entrepreneurs' online discussion boards yesterday. And I just had to smile. People were going just nuts about whether a business plan is needed, what a business plan even is, who should write the plan, and other assorted topics. But before I repeat the comments I shared, let me just say that as a CPA with many business clients in the Seattle area I've done a bunch of business planning, have covered the subjects in the best-selling books I've written QuickBooks, and also covered the subject rather extensively in my book MBA's Guide to Microsoft Excel (which was used at several big business schools.) With that as background, let me share a handful...

> Your ability to get investment funding makes the difference between a $100,000 a year business and a $500 million a year business. Ask the right quesitons and you just might have a shot at getting that much needed capital. Whether you are seeking capital for your company or are optimizing your business strategy, the most important element - particularly for outside investors - may be your written business plan. You can tune-up and supercharge your plan using this 19-step checklist. When your written plan firmly answers yes to each of these 19 questions, your market/product strategy is in terrific shape plus you increase the odds of attracting investment capital. If you don't already have a written...

California is home to some of the biggest computer companies in the world. In fact, not far away are schools like Stanford and Berkeley where some of the best engineers graduated. Given the close proximity of the companies and these institutions, it is no surprise that a lot of new software available is because of the generosity of capital venture investors. People don't have to move to all the way to the west coast to get funding when it comes to starting a new business. This is because in the Midwest, there are also people and companies out there who are willing to support anyone who has a good idea. Take for example Arkansas Capital Corporation Group. Four years ago, a fund was established to...

I attended the new Venture Fair at the Himss Conference and applaud the organizers for launching this new event. In spite of its maiden voyage, it was very well organized, well attended and very effective. In fact, the biggest difficulty was the weather not co-operating and the morning session had a majority of entrepreneurial presenters compared with qualified investors. By Mid Afternoon, with late arrivals, however, the ratio of investor to presenter was approximately one-to-one. I am looking forward to attending this event at next year's conference and anticipate that the word will get out and attendance will triple. If there were a disappointment, it was that only Eclipsys had a representative...

Looking back on all the private money deals I've done, I can't tell you how many times I thought that I would have a "one-call close." You know, where the potential investor calls you just after they have first learned about you, they're hot to invest money and a check goes in the mail right to your door. I'm continually working for that "one-call close"...but it has thus far eluded me. I'm not happy about it, but, it's something I'm striving for. A few days ago I was talking with a client and this subject came up. This person was wondering why he wasn't getting a flood of interested private investors ready to throw money at him from his website. Going into the conversation more, I realized that the...

Have you ever heard of the the 'Howey' test? If you want to raise money from private investors to fund real estate investments, you should know what the Howey test is and what it means to you. J. Howey was a Florida entrepreneur who was selling real estate contracts to finance the development of citrus groves that he owned (a sale-leaseback type of deal). Howey was offering people to buy his groves and then he would lease them back - so the buyer would earn their returns from rents received for Howey tending the land. So what? Who cares? How does this impact you? Read on... The issue that the SEC took with J. Howey and his real estate deal was how he was marketing his investment opportunity. You see...

For starters let me state the apparent. If you sold a house or commercial property and are holding the owner financed for the purchaser, you have a valuable asset that can be marketed. This as any other financial asset has a risk and a value (value of the future income stream ) that you can sell to other individuals or investors. Or if you own a house you need to sell, you can offer owner financing to get top dollar for the home, sell the property and then you can sell the note you are holding in a simultaneous closing for an instant payoff. Many note investors make the mortgage note purchasing process a mystery. And while not every private mortgage buyer has the same requirements just like a stock...

If you have just started a business, and are unhappy with your results so far, or you need some more funds to put into it in order to propel your business forward, then you need to consider partnering with a private investor, also called a business angel. Why? Because a private investor can provide you with everything you need in order to get your business moving in the direction you want it to, start seeing profits faster, and build the solid foundation you need in order to make is successful for years to come. Here is how a private investor can help you and your business: Start up funds – they will provide you with the money you need to buy equipment, machinery, land, hire employees, etc...

Whether you have lots of money and great credit starting out, or no money and lousy credit starting out, either way, if you truly want to make a serious bid at building a property empire then you cannot discount the importance of learning how to find investor partners and equally how to find private lenders to help fund your real estate investing. As you go along in your real estate investing career, as long as you pay attention and get educated about real estate investing, you will find that the skill you possess in spotting value and valuable money-making opportunities in real estate will far, Far, FAR surpass your ability to get all the money you need to do all these many deals you come across...

Have you ever used direct mail before? You know; the type of marketing where you send a physical mailing to somebody's home so that they can touch, feel and read a marketing message in their hands? It seems as though everywhere I look and everything I read is all about "online, digital and social" marketing. Nary is anything written anymore about direct mail. Sure, there are some people here and there who use it for their real estate investing businesses - and kudos to them - but the digital advertising tidal wave has engulfed just about everybody in business. And, if it's engulfing you, you may be flushing hundreds of thousands of dollars in private money right down the toilet. Here's what I mean...

INTRODUCTION Addressing to the Indian Economic Summit’s session, on Tuesday, the 18th of Nov. 2008, the State Minister of Industry, Mr. Ashwini Kumar declared that Rs 500 billion would be invested by the Central Government with public-private partnership in infrastructure pertaining projects. According to him this investment would lure demand to boost economic growth. In the prevailing time when Indian economy is under threat of the entrance of world depression 2008, such type of a big dose of investment in infrastructure is desirable to barricade against the entering depression. But, the private partnership may hamper the way of receiving the desired results. INDUCED INVESTMENT When talking about...

Stop me if you've heard this one before but real estate investing, in order to pay off big, requires some play money which must be equally big. This is the popularly accepted wisdom and it becomes the stumbling block which stops many real estate investors with the necessary drive and set of skills from even dipping their tow into the market. The whole knack of real estate is that you, as the investor, do not necessarily need to have a single penny to your name provided you have the skills necessary to bring together the elements required to close a successful, profitable sale and make money for others who do have it but do not possess your skills. These are private investors eager to get into the...

Your best source of private money is from high net worth investors. This shouldn't take much convincing. Unfortunately, far too many real estate investors concentrate their private money raising efforts on non-accredited investors. There is nothing wrong with raising money from non-accredited investors. I have had private investors in both accredited and non-accredited status. If someone wants to invest $50,000 of their $150,000 net worth with you, no problem. Just make sure you make the proper disclosures and any filings you may need to do with your state securities regulator. It can (and should) be done when the situation is right. This could be all the time for you or none of the time. Accredited...

Investing in collateralized mortgage loans is more profitable and risk-free with guaranteed annual earnings of 8 percent and as much as 13 percent paid on a monthly basis. On the other hand, investment in regular stock market offerings such as stocks, bonds and annuities never yield earnings higher than 5 percent annually and are usually paid quarterly or even twice a year. Interest earnings from shares of stock and bonds also come only when the companies involved are in such good financial position to declare a cash dividend for shareholders. Thus, such investments are highly vulnerable to market volatilities. In order to protect their money, the investors should be well-informed and on their toes...

The idea of a business plan competition first started in the 1980's at the initiative of some MBA students from Texas and has increasingly gained popularity. Such events happen yearly and rejoice a great affluence of contestants, which highly increases their competitiveness. Competitions Organized by Universities - Babcock Elevator Pitch Competition - Wake Forest University - Enterprise Creation Competition - Ball State University - Moot Corp. Competition - University of Texas - Duke Start-Up Challenge - Duke University - IBK Capital Ivey Business Plan Competition - University of Western Ontario - OFC Venture Challenge - Clark Atlanta University - Venture Adventure - Colorado State University Held...