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Buyout Fund
In finance, a buyout is an investment transaction by which the ownership equity, or a controlling interest of a company, or a majority share of the capital stock of the company is acquired. The acquirer thereby "buys out" the present equity holders of the target company. A buyout will often include the purchasing of the target company's outstanding debt, which is referred to as "assumed debt" by the purchaser. It is usually synonymous with " acquisition". Non-finance usage The term may apply more generally to the purchase by one party of all of the rights of another party with respect to an ongoing transaction between the two. For example: *An employer may "buy out" an employee's contract by making a single prepayment, so as to have no ongoing obligation to employ the person; *A landlord may buy out the remainder of a tenant's lease, effectively paying them to vacate. *A government may buy out homes in a floodplain or other area subject to hazard. The language used by FEMA, a Unite ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow, while money received in a series of several time periods is termed cash flow stream. In finance, the purpose of investing is to generate a Return (finance), return on the invested asset. The return may consist of a capital gain (profit) or loss, realised if the investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends, interest, or rental income. The return may also inclu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Free Agent
In professional sports, a free agent is a player or manager who is eligible to sign with other clubs or franchises; i.e., not under contract to any specific team. The term is also used in reference to a player who is under a contract at present but who is allowed to solicit offers from other teams. In some circumstances, the free agent's options are limited by the league's rules. Free agency was severely restricted in many sports leagues, instead clubs had a reserve clause which allowed them to retain players indefinitely. Usage Association football In professional association football, a free agent is either a player that has been released by a professional association football club and now is no longer affiliated with any league, or a player whose contract with their current club has expired and is thus free to join any other club under the terms of the Bosman ruling. Free agents do not have to be signed during the normal transfer window that is implemented in some ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Takeover
In business, a takeover is the purchase of one company (the ''target'') by another (the ''acquirer'' or ''bidder''). In the UK, the term refers to the acquisition of a public company whose shares are publicly listed, in contrast to the acquisition of a private company. Management of the target company may or may not agree with a proposed takeover, and this has resulted in the following takeover classifications: friendly, hostile, reverse or back-flip. Financing a takeover often involves loans or bond issues which may include junk bonds as well as a simple cash offer. It can also include shares in the new company. Takeover types Friendly takeover A ''friendly takeover'' is an acquisition which is approved by the management of the target company. Before a bidder makes an offer for another company, it usually first informs the company's board of directors. In a private company, because the shareholders and the board are usually the same people or closely connected with on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stub (stock)
A stub is the remaining capital stock representing the equity in a corporation after a major cash or security distribution—such as a buyout, spin-off, or demerger—removes most of the company's operations. A stub may retain the name of the original corporation or adopt a new one as part of the restructuring. When the main operating business is spun off or distributed, a stub may remain. This typically consists of residual assets, liabilities, or cash reserves. How Stub Stocks Arise Stub stocks commonly arise through spin-offs, where the parent company distributes shares of a subsidiary to existing shareholders. A well-known example is the case of 3Com and Palm. In 2000, 3Com spun off Palm, but retained approximately 95% of Palm's shares. The remaining equity in 3Com traded as a stub—low-priced and highly speculative compared to Palm’s high valuation. In 2000, 3Com spun off Palm but retained approximately 95 % of its shares; the stub value of the remaining 3Com equi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Growth Buyout
A growth buyout (GBO) is an acquisition intended to allow an investor or holding company to capitalize on the market growth of a maturing portfolio company. Characteristics Growth buyouts often target profitable portfolio companies in industries with a high potential for growth. These acquisitions are financed through a combination of debt and equity. Cambridge Associates defines growth buyouts as being a highly growth oriented form of private equity strategy, in contrast to more leverage-oriented strategies like leveraged buyouts (LBO). The holding company in growth buyout transactions seeks to create revenue growth in the portfolio company by expanding market share. This model has also been called "buy and build". Typically this market growth is achieved through strategies like such as acquisitions and the expansion of product lines and distribution. During a growth buyout, the holding company often acquires a large stake or even a controlling interest in the portfolio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Buyout
A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual. Management- and/or leveraged buyouts became noted phenomena of 1980s business economics. These so-called MBOs originated in the US, spreading first to the UK and then throughout the rest of Europe. The venture capital industry has played a crucial role in the development of buyouts in Europe, especially in smaller deals in the UK, the Netherlands, and France. Overview Management buyouts are similar in all major legal aspects to any other acquisition of a company. The particular nature of the MBO lies in the position of the buyers as managers of the company and the practical consequences that follow from that. In particular, the due diligence process is likely to be limited as the buyers already have full knowledge of the company available to them. The seller is also unlikely to give any but the most ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Leveraged Buyout
A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of the acquired company are often used as collateral for the financing, along with any equity contributed by the acquiror. While corporate acquisitions often employ leverage to finance the purchase of the target, the term "leveraged buyout" is typically only employed when the acquiror is a financial sponsor (a private equity investment firm). The use of debt, which normally has a lower cost of capital than Equity (finance), equity, serves to reduce the overall cost of financing for the acquisition and enhance returns for the private equity investor. The equity investor can increase their projected returns by employing more leverage, creating incentives to maximize the proportion of debt relative to equity (i.e., debt-to-equity ratio). Whi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Employee Buyout
Employee stock ownership, or employee share ownership, is where a company's employees own shares in that company (or in the parent company of a group of companies). US employees typically acquire shares through a share option plan. In the UK, Employee Share Purchase Plans are common, wherein deductions are made from an employee's salary to purchase shares over time. In Australia it is common to have all employee plans that provide employees with $1,000 worth of shares on a tax free basis. Such plans may be selective or all-employee plans. Selective plans are typically only made available to senior executives. All-employee plans offer participation to all employees (subject to certain qualifying conditions such as a minimum length of service). Most corporations use stock ownership plans as a form of an employee benefit. Plans in public companies generally limit the total number or the percentage of the company's stock that may be acquired by employees under a plan. Compared with w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Buyout Clause
A buyout clause or release clause refers to a clause in an employment contract. It allows the employee to terminate the contract unilaterally upon payment of a specified (usually substantial) fee to the employer. The fee may be paid by the employee directly, but is more usually paid by a prospective employer who wishes to acquire the employee's services. It is most commonly used in reference to sports teams, where a transfer fee is usually paid for a player under contract; however, the current owning club is not obliged to sell their player, and if an agreement on a suitable fee cannot be reached, the buying club can instead resort to paying the player's buyout fee – should their contract have such a clause – which the owning club cannot block. Buyout clauses are usually set at a higher amount than the player's expected market value. However, on occasion, a player at a smaller club will sign a contract but insist on a low buyout fee to attract bigger clubs if their performance ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Major League Baseball
Major League Baseball (MLB) is a professional baseball league composed of 30 teams, divided equally between the National League (baseball), National League (NL) and the American League (AL), with 29 in the United States and 1 in Canada. MLB is one of the major professional sports leagues in the United States and Canada and is considered the premier professional baseball league in the world. Each team plays 162 games per season, with Opening Day traditionally held during the first week of April. Six teams in each league then advance to a four-round Major League Baseball postseason, postseason tournament in October, culminating in the World Series, a best-of-seven championship series between the two league champions first played in 1903. MLB is headquartered in Midtown Manhattan. Formed in 1876 and 1901, respectively, the NL and AL cemented their cooperation with the National Agreement in 1903, making MLB the oldest major professional sports league in the world. They remained le ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ownership Equity
In finance, equity is an ownership interest in property that may be subject to debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule. When liabilities attached to an asset exceed its value, the difference is called a deficit and the asset is informally said to be "underwater" or "upside-down". In government finance or other non-profit settings, equity is known as "net position" or "net assets". Origins The term "equity" describes this type of ownership in English because it was regulated through the system of equity law that develo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federal Emergency Management Agency
The Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security (DHS), initially created under President Jimmy Carter by Presidential Reorganization Plan No. 3 of 1978 and implemented by two Executive order (United States), Executive Orders on April 1, 1979. The agency's primary purpose is to coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and U.S. state, state authorities. The governor of the state in which the disaster occurs must declare a state of emergency and formally request from the President of the United States, president that FEMA and the Federal government of the United States, federal government respond to the disaster. The only exception to the state's gubernatorial declaration requirement occurs when an emergency or disaster takes place on federal property or to a federal asset—for example, the 1995 Oklahoma City bombing, bombing of the Alfred ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
