As narrated by John Cleese. Understanding these rules makes it easier to invest with confidence - not being daunted by market uncertainty nor being tempted to seek safety in the herd behaviour of other investors. None of us can predict what stock markets will do next, but by being informed and then investing for the right reasons, we can move the odds further in our favour. Find out more: UK: http://thinkingaloud.aberdeen-asset.co.uk US: http://thinkingaloud.aberdeen-asset.us Australia: http://thinkingaloud.aberdeenasset.com.au/thinkingaloudau/ Global: http://thinkingaloud.aberdeen-asset.com/thinkingaloudglobal/
Views: 35588 Aberdeen Standard Investments
This video provides an overview of the accounting rules and classifications for different types of investments. Investments can be broadly grouped into two types: debt investments and equity investments. Debt investments can be held-to-maturity (presented on the Balance Sheet at amortized cost, with changes in fair value not affecting Net Income), available-for-sale (presented on the Balance Sheet at fair value, with unrealized gains or losses bypassing the Income Statement and flowing through Other Comprehensive Income), or Trading (presented on the Balance Sheet at fair value, with unrealized gains or losses affecting Net Income. Equity investments are treated as Trading Securities according to the Fair Value Method (if the investor owns less than 20% of the investee), which marks the investment to market on the Balance Sheet and has unrealized gains or losses flow through Net Income. There is a practicability exception, however: if the fair value cannot be determined, the investment is presented on the Balance Sheet at cost, minus any impairments. If the investor owns between 20% and 50% of the investee the Equity Method is used; with this method, the investor does not recognize dividend revenue but instead recognizes a proportionate share of the investee's Net Income. If the investor owns more than 50% of the investee, the investor must consolidate the investee (the two entities are treated as one consolidated entity). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 24862 Edspira
This video uses a comprehensive example to demonstrate how to account for investments using the Equity Method. When an investor owns between 20% and 50% of a firm's stock, the investor is deemed to have significant influence and must recognize a proportionate share of the firm's earnings. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 55831 Edspira
Financial Opportunities Forum (February 2018): Mr. Rajeev Thakkar, takes a look at how Private Equity businesses have shaped the business & investment climate in the Indian context. Private Equity investors have been involved in the Indian capital markets for a while now. They not only affect operational performance at many of their invested companies but also affect the market valuations by providing growth capital at the right time for businesses to scale. Presentation can be downloaded here: https://amc.ppfas.com/pdf-docs/fof/a-look-at-private-equity-investments-in-the-indian-market.pdf Disclaimer: Viewers should assume that PPFAS's Clients, PPFAS, its Directors, Employees have investments in the stocks and Mutual funds which are spoken about (long investment positions). We do not short stocks or indices. We do not speculate in Futures and Options.
Views: 6639 PPFAS Mutual Fund
Here's an outline of what we'll cover in this free Minority Stake Acquisition tutorial: Why Does This Matter? By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" The way you reflect minority stake purchases on the financial statements differs from what you do for acquisitions of entire companies, and from greater than 50% ownership acquisitions. We create an item called "Equity Investments" AKA "Investments in Equity Interests" AKA "Associate Companies" on the Balance Sheet to reflect cases where we own less than 50% of other companies. It's also very, very common to see these deals in the news... we're looking at a ~$2.6 billion deal here between Liberty Media and Charter Communications Liberty Media is a large holding company and media conglomerate that buys stakes in lots of media companies... such as Sirius XM Radio, Time Warner, Viacom, Live Nation, Crown Media, and Barnes & Noble. Charter Communications is the 4th largest cable operator in the US, as of the time of this deal. Liberty purchased a 27% stake in Charter, worth $2.6 billion, which was announced in Q1 2013 and closed in Q2 2013. We're going to look at this acquisition via a 4-step process in this set of tutorial videos: 1. What happens on the financial statements when you purchase that initial minority stake in a company? We'll cover this first step in this tutorial. 2. What happens on the statements after running the business for several years, with that minority stake included? 3. What happens when you increase your ownership in that company? 4. How do you reflect a sale of a minority stake on the financial statements? What Do You Do to Reflect This? It's DIFFERENT from greater than 50% ownership acquisition because you do NOT go through the purchase price allocation process at all - no Goodwill, no write-ups, no consolidation of the financial statements, etc. Instead, you simply reflect the cash/debt/stock used to fund the deal on the Balance Sheet, create the new line item for your ownership in the other company, and also reflect any transaction fees paid for this minority stake. So this initial step is pretty simple - but it gets more complicated when you have to reflect earnings and dividends from the Equity Investments *after* the transaction closes. How Do You Reflect This Type of Acquisition on the Statements? 1. First, you need 3-statement projections for the Parent Company and target company. We've already filled these in here, based on equity research and our own estimates - this is NOT the focus of this lesson, so we're not going over how to create these projections. If the deal closes in the middle of the year, quarterly projections are best so you can be more precise - here, we're dividing 2013 into quarters but leaving the other years in annual figures. 2. Then, you need to look up information on the deal - the close date, purchase price, % cash/debt/stock used, and anything else relevant such as the maximum ownership percentage. 3. Then, go to Balance Sheet and reflect cash/debt/stock used and creation of new Equity Investments line item. Careful with debits and credits... CR Asset = Reduce it, CR Liability = Increase it. DR Asset = Increase it, DR Liability = Reduce It. Aside from cash, debt, and the Equity Investments line item, most other line items will not be adjusted at all in this initial transaction. So the set of steps here is just: CR Cash DR Equity Investments CR Long-Term Debt And if you've set up the model correctly, the Balance Sheet should remain in balance. Most other line items will be $0 - we're ignoring transaction and financing fees here. What Next? In parts 2-4, we'll walk through what happens on all 3 statements when a minority stake is purchased, what happens when the parent company increases its ownership, and what happens when it finally sells that minority stake to someone else. Again, we'll be using this Liberty Media / Charter Communications deal as the example for all the steps here.
The equity method is a type of accounting used for investments. This method is used when the investor holds significant influence over the investee, but does not exercise full control over it, as in the relationship between a parent company and its subsidiary. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/equity-method/
Views: 6952 Corporate Finance Institute
Watch Thomas Russo deliver a talk on "Lessons from Global Value Equity Investing", originally presented at the second Value Investing Pioneers Summit, hosted by CFA Society India. Read about the talk on our blog, at https://cfasocietyindia.com/2019/01/09/session-by-mr-thomas-russo-2nd-value-investing-pioneers-summit-delhi-2018/ The CFA Society India, established in April 2005, is an association of local investment-professionals, consisting of portfolio managers, security analysts, investment advisors, and other financial professionals. As one of the over 140 CFA Institute member societies, The CFA Society India connects local members to a global network of investment professionals .
Views: 3992 CFA Society India
The Rest Of Us on Patreon: https://www.patreon.com/TheRestOfUs The Rest Of Us on Twitter: http://twitter.com/TROUchannel The Rest Of Us T-Shirts and More: http://teespring.com/TheRestOfUsClothing Part 2: https://www.youtube.com/watch?v=fcjmVj5fM5k Credits: Music by The FatRat. https://www.youtube.com/channel/UCa_UMppcMsHIzb5LDx1u9zQ If you're a YouTuber, definitely check The FatRat. The channel offers a wide variety of free-to-use music for your videos.
Views: 1446375 The Rest Of Us
Updated version available. Click here to watch: https://youtu.be/Qhf4KSeSWIE What is private equity and how does it help companies? Watch this video to find out how European companies are benefitting from private equity investment, which can help them to innovate, develop products, expand into new markets and create sustainable employment. Discover more industry insight related to this video by Invest Europe at http://investeurope.eu/ Follow us on LinkedIn: https://www.linkedin.com/company/755558 Follow us on Twitter: https://twitter.com/InvestEuropeEU Subscribe to our YouTube channel: https://www.youtube.com/user/investingInEU
Views: 88551 Invest Europe
Private equity refers to company ownership by a specialized investment firm. Typically, a private equity firm will establish a fund and use it to buy multiple businesses, with the goal of selling each one within a few years at a profit. Private equity firms will often target an underperforming business and, after purchasing the company, use their management expertise to improve profitability.
Views: 127350 Investopedia
This tutorial series is all about equity investments (AKA minority stakes AKA associate companies) -- cases where one company owns between 20% and 50% of another company. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" To reflect this, we create a line item called "Equity Investments" (AKA Associate Companies AKA Investments in Equity Interests) on the Assets side of the Balance Sheet. In Parts 1 and 2 of this series, we walked you through what happens when the parent company -- Liberty Media in this case -- buys a 27% stake in another company (Charter Communications) and then reflects Net Income and Dividends from that company. In Part 3, you'll see what happens when Liberty Media increases its ownership stake in Charter and pays for it with a combination of cash and debt -- and how that impacts the 3 financial statements. What Do You Do to Reflect This? Transaction Adjustments on Balance Sheet - If we've BOUGHT an additional stake, we must reflect the cash, debt, and stock used AND the increase in the Equity Investments line item. But watch out for limitations! Here, we can't acquire more than 35% for a few years, and can't ever acquire more than 40%. And watch out for the cash the company has available, plus the amount of debt they can really take on. Income Statement and Cash Flow Statement -- Change the % ownership for Net Income and Dividends in all future periods... and that's about it! May need to adjust ending cash balance on the CFS as well. Arguably, you should change the interest expense to reflect additional debt, but we're just ignoring that here in the interest of simplicity. Process Outline -- Increasing Your Minority Stake in Another Company Step 1: Make the assumptions at the top -- purchase price, new ownership percentage, cash and debt used. Step 2: Set up the financial statements to support "Transaction Adjustments" area -- already done here. Step 3: On the Balance Sheet, copy and paste Transaction Adjustments from initial stake acquisition... Step 4: But change them around to reflect the numbers and assumptions for THIS deal. Step 5: Re-link the post-transaction columns on the Balance Sheet... and be careful! Step 6: Fix the ending cash balance at the bottom of the CFS for this first post-transaction year. Step 7: Return to the Income Statement and Cash Flow Statement and change the ownership percentages there. Step 8: Does everything work? Balance Sheet still balanced? Correct percentages? Cash balances? Equity Investments? What Next? Next up: in Part 4, we'll walk through what happens when Liberty Media sells its minority stake in Charter to someone else, including what happens when there's a gain or loss on the sale.
How to use equity finance (Refinance) to buy investment property DOWNLOAD FREE CHECKLIST: https://yourfirstfourhouses.com/ Equity is the difference between what your property is worth MINUS your mortgage and in today's, I talk through how you can use that equity to buy investment property (Real Estate). If you want to learn how to invest in property, or if you want to build a property portfolio of you own, be sure to download the above property investing checklist, because in there I give you a detailed list of everything I think you need to consider BEFORE buying that first investment property. You are also welcome to download my FREE list of every property related website tool and app you'll need in your property business here: https://goo.gl/qtvdQb If you're thinking of releasing the equity from your property to buy an investment property, I would love to hear from you in the comments section below I wish you every success... Tony Law - Your First Four Houses :-) PS. There are some great opportunities in the property market right now!
Views: 70302 Your First Four Houses
Are your equity returns in red? Nikhil Naik, Chief Growth Officer, Naikwealth Planners asks you to look at where the returns are coming from rather than concentrating on a short term lens. #EquitySahiHai. For more videos: https://bit.ly/2uUULrt In association with The Money Mile and Vivek Law
Views: 29350 Motilal Oswal AMC
Sherjan Husainie, of Leaders Global Network, offers career workshops in ten major cities around the world. He has worked in both investment banking at Morgan Stanley and in private equity at Google Capital. For more info, visit http://www.leadersgn.com/
Views: 236353 Career Insider Business
In this TEDx Talk event, trader Alessio Rastani exposes one of the biggest lies in investing that almost everyone believes in... It reveals a truth a big truth about the stock market and the economy.
Views: 1333422 Alessio Rastani
Who invests in private equity? Investors in private equity are institutions and individuals. Institutions are defined as pension funds, endowments, and foundations. Currently (2016) individuals are comprised of family offices and select high net worth individuals. In the future, more and more people are going to be investing in private equity. In August 2015, Private Equity International compiled a list of the biggest investors in private equity. The list includes four categories of investors which include direct investors, fund investors, as well as investors that invest in co-investments and secondary investments. Direct investing is when an investor directly invests in private companies. It could be buying the entire company or a minority investment. Fund investing is when an investor goes to a private equity fund and the private equity fund buys companies on the investor’s behalf. Co-investing is the most complicated option. For instance, an investor invests $50 million in a private equity fund with co-investment rights, meaning that when the fund looks for opportunities it can allow the investor to participate not only through the fund, but directly as well. An example of this would be when a fund is looking at investment in a $40 million company. That investment needs $30 million equity and $10 million in debt. The equity portion given by the fund (without co-investing) would be $30 million dollars. In the case of co-investing, the fund gives $20 million (in which the investor is participating through the fund) with the remaining $10 million (i.e. the difference between the $20 million in equity given by the fund and the $30 million equity needed) is offered to the investor to do on a direct basis resulting in the fund investing $20 million and the investor investing $10 million. When investors invest into a fund, they pay full “two and twenty” fees (i.e. typically paying a 2% management fee and a 20% performance fee). By investing $10 million directly, other than a small deal origination fee, investors are able to reduce their overall fees. (For more on fees see the following video). The fourth way to invest in private equity is through secondaries. In this example, our investor makes a commitment to invest $50 million in a private equity fund by giving about $10 to $20 million dollars to the private equity fund up front for the first two fund investments. As more acquisitions are made, the private equity fund makes capital calls to the investor. The investor is usually locked into the private equity fund for seven to ten years (or longer). If the investor wants out of this agreement, the commitment can be sold to other investors. The sale can be of the entire commitment (which would include the existing deals that the private equity fund was already made, plus future capital calls) or it can be done through a structured secondary (selling different parts) where the investor may want to keep the existing investments and just sell the future commitments. As easy as an investor can sell a secondary, it can buy one as well. Returning to the August 2015 list of all the types of investments in private equity compiled by Private Equity International, we see that the Canada Pension Plan Investment Board (CPPIB) tops the list. CPPIB participates in all types of investments including direct, fund investments, co-investments, and secondaries. One of its most notable investments was in Skype. Skype was purchased from eBay in 2009 and sold to Microsoft in 2011. CPPIB had a small portion of that deals. In 2009, CPPIB invested $300 million and in 2011 it received $933 million. Yes, that’s right; CPPIB put in $300 million and received $933 million back in two years. Not too bad! To recap: Investors in private equity are institutions including pensions like CPPIB, endowments, foundations, and individuals. In 2016, individuals are mostly family offices and select high net worth individuals. In the future, more and more people are going to have access to private equity.
Views: 12812 Steve Balaban
Conceptualised by the National Stock Exchange (NSE) in association with CNBC-TV18, 'NSE Fin Wiz' is part of the NSE LIFE. The purpose of NSE LIFE is to improve levels if financial literacy and education to enable, empower and enrich young Indians. As NSE FinWiz travels to Kansai Nerolac in Mumbai for its third season, watch India's finest financial experts Feroze Azeez and Harshwardhan Roongta
Views: 12585 CNBC-TV18
A interview and Q&A with billionaire and Co-CEO of private equity giant KKR, Henry Kravis. In this interview Henry talks about how private equity has changed and where he predicts it will go. Henry also talks about the rise of growth equity investing in private equity and unicorn companies. 📚 Books on Henry Kravis and KKR are located at the bottom of the description❗ Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Other great Private Equity investor videos:⬇ Steve Schwarzman reflects on Blackstone and His Life:http://bit.ly/SSPEPic Billionaire Henry Kravis on Finance, Work Ethic and Life: http://bit.ly/HKFVid Billionaire Leon Black: Investment Strategy for Private Equity:http://bit.ly/LBlackVid Video Segments: 0:00 Introduction 0:21 Donald Trump said you would be a good treasury secretary 0:45 When you are looking at a deal, how do you look out for disruption in that industry? 4:32 Is a IPO of First Data on the horizon? 5:13 Why are you entering the growth equity/Venture capital market? 8:00 Do you think the deals are in a bubble? 9:22 Would you buy a index of unicorn companies? 10:32 Is a growth equity fund coming? 12:15 Paying the tech peoples salary? 12:50 Did you learn anything new when KKR went public? 15:24 Are the concerns of tech CEOs about going public legitimate fears? 16:25 How much of a technologist are you? 17:16 Investing with Iconiq 18:29 How do you get a feel of good culture at a company? 23:43 In the next 12 months will we see a $10 billion buyout? 24:22 Start of Q&A 24:37 Over the past 25 years, what have you had to give up to be more successful in investing? Henry Kravis and KKR Books 🇺🇸📈 (affiliate link) The New Financial Capitalists:http://bit.ly/NewFinancialCapitalists Merchants of Debt:http://bit.ly/MerchantsofDebt Barbarians At The Gate:http://bit.ly/BarbariansGate The Money Machine:http://bit.ly/MoneyMachineKKR Interview Date: 21st July, 2015 Event: Fortune's Brainstorm Tech Original Image Source:http://bit.ly/HKravisPic1 Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place. For more check out the channel. Remember to subscribe, share, comment and like! No advertising.
Views: 25969 Investors Archive
The Private Equity industry as we know it today is significantly larger compared to what it used to be 20 years ago. Nowadays pension funds, investment banks and high-net-worth individuals invest their money in private equity funds. The main idea is to use the money in order to acquire private or public companies, develop and improve their business, and then resell it at a considerable profit, given that the typical investment horizon ranges between 5 and 10 years. Private equity investments are risky, very illiquid and investors expect a significantly higher return compared to some of the other asset classes. Private Equity is one of the most desired career paths in the world of Business and Finance. Several years ago very few, if any, of the PE funds were hiring without relevant work experience. Today, it appears that more funds are willing to hire people with less experience. It is not rare to see intern and analyst openings within PE funds. However, if you’ve worked a couple of years in investment banking, consulting, or financial advisory, your chances of being hired increase significantly. Salaries vary based on the firm size and the country that you are located in, but they are generally 10-20% higher than the ones of investment banker analysts and associates with the same number of years of experience. On Facebook: https://www.facebook.com/365careers/ On the web: http://www.365careers.com/ On Twitter: https://twitter.com/365careers Subscribe to our channel: https://www.youtube.com/365careers
Views: 22715 365 Careers
Private equity refers to private company (wholly or controlling stake) ownership by a specialized investment firm. Typically, a private equity firm will establish a fund (aka a SPV - special purpose vehicle) and use it to buy multiple businesses, with the goal of selling each one within a few years at a profit. Private equity firms will often target an under-performing but profitable business and, after purchasing the company, use their management expertise to improve profitability. How does Private Equity Manager Add Value During Buying Process 1) Conduct due diligence on private information such as strategic plans and forecasts 2) Conduct exclusive due diligence on operations & company management 3) Get favourable entry price by means of below market value acquisition During Holding Period 1) Drive for long-term sustainable value creation, not quarterly performance 2) Drive for operational improvements, revenue growth, profitability & expansion 3) Drive for positive changes and hold company management accountable for KPIs During Selling Process 1) Execute exit strategy which has been defined during entry, via IPO, convertible bonds, warrants, etc 2) Improved company fetches higher price via higher valuations & earnings multiple (P/E ratio) 3) Ability to source for strategic buyers with best offer price in a well-connected network As an investors, we can invest into this fund or SPV, and invest alongside with the fund manager. Read more here - https://www.howtofinancemoney.com/2016/08/private-equity-investments.html ***** Click Here To Get All The Details On The Online Program That CF Lieu coaches his clients and banks/financial institutions to construct a sustainable and safe investment portfolio through REIT (Real Estate Investment Trusts) - https://reitmethod.com ★☆★ SUBSCRIBE TO CF LIEU YOUTUBE CHANNEL NOW ★☆★ http://youtube.com/channel/UCN11ZcQ85CsBo8YJoHUp07g?sub_confirmation=1 Check out these Top Trending Playlist: 1.) How to Start Trading & Investing in Bursa Malaysia: https://www.youtube.com/playlist?list=PLQ7ZQik2O1aIA7eeem4tvCM_9bRrzytA1 2.) Make Passive Dividend & Capital Gain from Proper Investing Methodologies - https://www.youtube.com/playlist?list=PLQ7ZQik2O1aKnouSfUBRphT7szPw3yHo4 3.) Max Out Insurance Protection but Pay Minimum Premium - https://www.youtube.com/playlist?list=PLQ7ZQik2O1aJ0acvmZ7RZqrVh9ciPgcv8 CF Lieu is one of the most trusted & respected independent consultant in the financial advisory space in Malaysia. CF’s unique & unconventional angle of financial ‘life’ planning is evident by the title itself in his book - 'Why 99% Financial Advice are Crap - the No Bullshit Approach to do what you're good at, live the life you deserve & enjoy the freedom you desire' CF works exclusively with personal clients who want a more sustainable and safe lifestyle and investment portfolio through REIT (Real Estate Investment Trusts). Check out https://reitmethod.com where he co-founded the educational program with KC Lau. CF Lieu is also one of the rare financial planners cum advisers who is actually engaged by banks and financial institutions to conduct investment seminars & workshops - like Maybank, RHB, PNB (Permodalan Nasional Bhd), FPAM (Financial Planning Association of Malaysia)...where his audience include CEOs, CFOs, accountants, investment analysts, private bankers, relationship managers etc CF Lieu’s availability to work 1on1 with clients is extremely limited. As such, he's very selective and he is expensive (although it will be FAR less expensive than staying where you are). Many of his clients are seeing a positive return on CF Lieu’s advice in days, not months. See CF’s clients’ testimonials here - https://howtofinancemoney.com/testimonials2/ If you think you might benefit from one-on-one interaction with CF, visit https://cflieu.com ★☆★ WANT TO OWN CF LIEU’s BOOK? ★☆★ 'Why 99% Financial Advice are Crap - the No Bullshit Approach to do what you're good at, live the life you deserve & enjoy the freedom you desire' Go Here go get it - https://howtofinancemoney.com/ ★☆★ NEED SOLID 1on1 ADVICE? ★☆★ Request a call with CF LIEU, but first, enter your details to see if you qualify: https://howtofinancemoney.com/contact/ ★☆★ CONNECT WITH CF LIEU ON SOCIAL MEDIA ★☆★ Instagram: https://www.instagram.com/cflieu1/ YouTube: http://youtube.com/channel/UCN11ZcQ85CsBo8YJoHUp07g?sub_confirmation=1 Facebook: https://www.facebook.com/lieucf #cflieu #getactionableadvice #reitmethod #privateequity
Views: 1126 CF Lieu
In this Video Dr Vivek Bindra unveils the secret on how to attract fundings for a startup business. He discusses in detail the difference between Private equity investors and venture capitalists. He also advises new business and start ups different ways to attract funds. Watch this video until the end for successful growth and health of your business 1. If you want to know how to raise funds for your startups from external agencies then watch this video 2. If you want to know how to raise funds for your startups through venture capitalists then watch this video 3.If you want to know how to raise funds through PE investors then watch this video 4.If you want to know more about angel investors then watch this video 5.If you want to know more about seed capital then watch this video 6. If you want to know more about debt capital then watch this video 7.If you want to know more about seed fundings then watch this video 8. If you want to know more about IPO then watch this video 9. If you want to know more about growth capital then watch this video 10. If you want to know more about debt restructuring then watch this video 11. If you want to know more about debt financing then watch this video 12. If you are looking for investors then watch this video 13.If you are looking for venture capital then watch this video 14.If you are looking for PE investors then watch this video To Attend a 4 hour Power Packed “Extreme Motivation & Peak Performance” Seminar of BOUNCE BACK SERIES, Call at +919310144443 or Visit https://bouncebackseries.com/ To attend upcoming LEADERSHIP FUNNEL PROGRAM, Call at +919810544443 or Visit https://vivekbindra.com/upcoming-programs/leadership-funnel-by-vivek-bindra.php Watch the Leadership funnel Program Testimonial Video, here at https://youtu.be/xNUysc5b0uI Follow our Official Facebook Page at https://facebook.com/DailyMotivationByVivekBindra/ and get updates of recent happenings, events, seminars, blog articles and daily motivation.
Views: 1666144 Dr. Vivek Bindra: Motivational Speaker
An interview with billionaire and co-founder of private equity firm Vista Equity Partners, Brian Sheth. In this interview, Brian discusses starting Vista and its investment philosophy of focusing on software. Brian also talks about philanthropy and talent management. Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Other great Private Equity investor videos:⬇ Steve Schwarzman reflects on Blackstone and His Life:http://bit.ly/SSPEPic Billionaire Henry Kravis on Finance, Work Ethic and Life: http://bit.ly/HKFVid Billionaire Leon Black: Investment Strategy for Private Equity:http://bit.ly/LBlackVid Video Segments: 0:00 Introduction 1:59 How do you measure success? 3:46 How did you get this big? 7:09 Free cash flow of software companies? 8:57 Challenges faced when scaling Vista Equity Partners? 11:35 Founders working at Vista? 14:09 Why have you not created a company we can invest in? 17:10 Recruiting a diverse workforce? 20:13 New species? 22:21 Why did you get interested in it? Interview Date: 15th May, 2018 Event: The Montgomery Summit 2018 Original Image Source:http://bit.ly/BShethPic Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place. For more check out the channel. Remember to subscribe, share, comment and like! No advertising. #InvestorsArchive
Views: 6430 Investors Archive
In this lesson, you'll learn why you can't just "ignore" a company's ownership stakes in other companies. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" And you'll also learn how to factor in partially owned companies when calculating Enterprise Value and valuation multiples. Table of Contents: 2:32 Why You Can't Ignore Equity Investments (Associate Companies) and Noncontrolling Interests (Minority Interests) 4:38 Example for Equity Investments (Associate Companies) 10:28 Recap and Summary Why You Calculate Enterprise Value the Way You Do... Pretty much everyone agrees that you take a company's Equity Value, subtract Cash, and add Debt to calculate Enterprise Value. But after that it gets murkier, and not everyone agrees on which items to add or subtract. One common scenario: a company owns a % of another company, and it reflects that ownership somewhere on its Balance Sheet... what do you do? With an Equity Investment or Associate Company, the Parent Company owns less than 50% and records the stake as an Asset on its BS. With Noncontrolling Interests (formerly "Minority Interests"), the Parent company owns more than 50% but less than 100%, consolidates the financial statements 100%, and records the value of the stake it does NOT own on the L&E side of the BS. You CANNOT ignore these items when calculating Enterprise Value because: Reason #1: Equity Value (Market Cap) Implicitly Reflects the Value of These Stakes Already. Investors buy and sell shares, knowing full well how much the company owns of other companies. Great Example: Yahoo! and Alibaba -- Yahoo! bought a 40% stake valued at $2.5 billion, which grew to $15.2 billion in 9 years. When Yahoo's share price increased over the years, it was often because of Alibaba beating growth expectations! Reason #2: You Need to Make an Apples-to-Apples Comparison in Valuation Multiples. If Company A owns 70% of Company B and 30% of Company C, then its Equity Value already reflects those stakes... and so will Enterprise Value, if you don't add or subtract them. So metrics like EBITDA also need to reflect 70% of Company B's EBITDA and 30% of Company C's EBITDA... But they don't do that "naturally" because of the accounting rules for these stakes on the Income Statement. So we need to adjust by including 100% of the value, or 0% of the value, in Enterprise Value and in EBITDA -- and it is easier to make this adjustment to Enterprise Value, rather than modifying the company's Income Statement, in 99% of cases. Example for Equity Investments / Associate Companies: The Parent Company has the following stats: Equity Value = $350 Cash = $50 Debt = $200 EBITDA = $63 It owns 30% of another company, and that Associate Company is worth $100. So you just say Enterprise Value = $350 -- $50 + $200 = $500, right? Wrong! Here's the Problem: That Equity Value of $350 already reflects 30% * $100, in other words the ownership stake in the Associate Company times the Associate Company's value. Without that stake, the Parent Company's Equity Value would be $320 instead. So as it stands, this Enterprise Value of $500 also includes the value of that 30% stake. BUT... EBITDA includes 0% of the Associate Company's EBITDA, because accounting rules state that the statements should not be consolidated when the Parent Company owns under 50%. There is an adjustment at the bottom of the Income Statement, but the EBITDA for the "Combined Company" here is really just the EBITDA for the Parent Company. In other words, let's say the Associate Company had $15 in EBITDA. The Combined Company's EBITDA would NOT be $63 + $15 * 30% = $67.5. It would only be $63! So Enterprise Value reflects 30% of the Associate Company, but EBITDA only reflects 0% of the Associate Company. Theoretically, you could fix this by adding 30% of the Associate Company's EBITDA (as in that example right above)... But in real life, companies don't disclose enough information for you to do this. They only show the Associate Company's Net Income. So instead, we subtract 30% * $100 from Enterprise Value, to make sure that neither Enterprise Value nor EBITDA reflect that other stake, and the equation becomes: Enterprise Value = Equity Value + Debt -- Cash -- Equity Investments Enterprise Value = $350 + $200 -- $50 -- $30 = $470
Views: 16080 Mergers & Inquisitions / Breaking Into Wall Street
In this lesson, you'll learn how to reflect Net Income and Dividends from Equity Investments - also known as Associate Companies or Investments in Equity Interests or Partially Owned Subsidiaries, among other names. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Once again, we'll use Liberty Media's acquisition of 27% of Charter Communications for the case study here. According to accounting rules (under both US GAAP and IFRS), when a parent company owns between 20% and 50% of another company and exerts "significant influence" (among other rules), it is required to apply the "Equity Method of Accounting for Investments." This means that the ownership in this other company is recorded as an Asset on the Balance Sheet, and that: 1. On the Income Statement, the parent company (Liberty Media) must ADD its percent ownership * Charter Communication's Net Income at the bottom. 2. On the Cash Flow Statement, the parent company then SUBTRACTS that portion of the Net Income... because it's non-cash. Why? Think of it like this: if you buy stock in a company and the company earns Net Income, do you physically receive that Net Income in cash? No! You only get cash if the company chooses to issue some of that Net Income in the form of Dividends... and it's exactly the same here. If the other company has recorded a Net Loss, then you'd just record % Ownership * Net Loss on the Income Statement, making Net Income at the bottom lower... and then add back that number on the CFS. 3. Then, you ADD the parent company's portion of dividends received from the other, partially owned company. Why? Because the parent company actually DOES receive those dividends in cash, so they SHOULD increase its cash balance. So you record Other Company's Dividends Issued * % Ownership as an addition on the Cash Flow Statement. As a result of all this, cash at the bottom of the CFS increases by the portion of dividends the parent company receives from the other company. 4. Finally, on the Balance Sheet: Here, you just ADD the portion of Net Income from the other company, and SUBTRACT the portion of Dividends to the Equity Investment line item. Example: You own 30% of another company. The Investments in Equity Interests line item is $1,000 currently. The other company records $100 in Net Income and issues $20 in dividends. Therefore, Investments in Equity Interests increases by $100 * 30%, or $30, and decreases by $20 * 30%, or $6, so overall it goes up by $24. If you had a Net Loss from the other company, that would cause this line item to decrease instead. This line item is sort of like a "mini-Shareholders' Equity" but for 20% to 50%-owned companies. There's probably an official accounting explanation somewhere, but that's how I think of this concept. Up Next In Part 3 of this series, we'll walk through what happens when Liberty Media increases its ownership in Charter. And then in Part 4, we'll walk through what happens when Liberty Media sells its ownership in Charter and no longer owns any stake in the company.
In this video (Part 4 of this series on Equity Investments AKA Associate Companies AKA Minority Stakes or Minority Investments) By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" We'll also walk through what happens when you SELL your stake in another company and record a gain or loss on the sale of the investment. Step 1: Determine the Purchase Price and Gain or Loss In real life, you would do this by valuing Charter Communications via public comps, precedent transactions, and a DCF and assigning a value to the entire company, figuring out its implied Equity Value and multiplying by Liberty Media's ownership percentage. Or you could take the price offered by potential or existing buyers of this minority stake. Here, we're more focused on the mechanics so we're assuming a price of $3.5B, which would represent about a $505 million Gain on the book value of the Equity Investment at the time of the sale (which we assume happens on December 31st of the year in the model). We'll also look at the case where it's sold for $2.5B instead and Liberty Media therefore records a $495 million Loss. Step 2: Reflect the Changes on the Financial Statements Easiest method here: create a "Transaction Adjustments" area and only bother to adjust the Balance Sheet - yes, you COULD also adjust the IS and CFS and create pro-forma historical statements, but it would take longer and is not truly necessary for the analysis. It's better / easier to build a pro-forma Balance Sheet and then alter the forward numbers beyond the year 2014 here. Step 2.1: Add the proceeds from the sale itself (~$3.0B) to Cash on the Assets side. Step 2.2: ALSO add the after-tax gain or loss to Cash on the Assets side. Remember, we're taxed on capital gains and we can receive a tax deduction for capital losses, but we are NOT taxed on the cash received for selling the investment itself! So in this case, cash increases from $804 million to $4.1 billion... if there were a loss instead, cash would still go up but would go up by less than this. Step 2.3: Remove the Equity Investments line item - Credit the entire amount prior to the sale, so that the Pro-Forma column shows $0 there. Step 2.4: Adjust the Retained Earnings on the L&E side and also reflect the after-tax gain or loss there. Why? Because it would ordinarily show up on the Income Statement and therefore affect Net Income, and Net Income flows into Retained Earnings... so we're just taking a "shortcut" here and show the ultimate impact after it flows through the Income Statement. Step 2.5: Check that the Balance Sheet still balances - pretty important to get this right... Step 3: Modify the Future Financial Statements Remove the Net Income from Equity Investments and the Dividends Received from Equity Investments on future Income Statement and Cash Flow Statement projections. Not necessary here, but you'd need to do this in real life if you had projections beyond our final year here. Best to just set all these to a hard-coded $0. What Next? Now you're done! That's how Equity Investments work, and how you reflect the initial purchase, the flow-through of Net Income and Dividends, a stake increase, and the eventual sale of these investments and any accompanying gain or loss. Go practice by yourself and take a deal or company of your choosing and try to replicate this - and for a slightly more advanced topic, start learning about Noncontrolling Interests (formerly known as Minority Interests) and how those work... coming up in another set of tutorials from us soon.
Billionaire Stephen Schwarzman interviewed by David Rubenstien. In this interview Stephen discusses early life and how certain opportunities made him what he is today. Stephen also discusses the creation of his firm Blackstone, and how he grew it to become the third largest private equity firm in the world(2016).📚 Books on Stephen Schwarzman and Stephen Schwarzman’s favourite books are located at the bottom of the description❗ Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Video Segments: 0:00 Introduction 2:44 Growing up /Fathers business 5:00 Yale 7:05 Lehman Brothers 13:08 Why did you leave Lehman Brothers/ Starting Blackstone 20:06 Trying to raise a fund 22:07 Expanding out of private equity 29:01 Deals you are most proud of and one that got away 37:15 Going public 43:29 Valuation for private equity firms lower than regular asset management firms 45:49 What do you want to do with your wealth? 51:07 Are you going to stay at Blackstone? Stephen Schwarzman Books 🇺🇸📈 (affiliate link) King Of Capital: http://bit.ly/KingofCapital Stephen Schwarzman’s Favourite Books🔥 The Prince:http://bit.ly/ThePrinceSS We Were Soldiers Once… and Young:http://bit.ly/WeWereSoldiersOnce The Interpretation of Dreams: http://bit.ly/InterpretationOfDreamsSS Childhood and Society: http://bit.ly/ChildhoodandSociety The Prize: The Epic Quest for Oil, Money & Power: http://bit.ly/ThePrizeSS Interview Date: September 15th, 2015 Event:The Economics Club Of Washington, D.C Location: Mandarin Oriental Washington, DC Hotel, Grand Ballroom Original Image Source: http://bit.ly/SchwarzmanPic Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place. For more check out the channel. Remember to subscribe, share, comment and like! No advertising.
Views: 46970 Investors Archive
Review: Private Equity, Direct Investing, Fund Investing, Co-investing and Secondary Investing Investors can invest in private equity in four different ways: Directly, funds, co-investments and secondaries. Direct investing is when an investor directly invests in private companies. It could be buying the entire company or a minority investment. Fund investing is when an investor goes to a private equity fund and the private equity fund buys companies on the investor’s behalf. Co-investing is the most complicated option. For example, an investor invests $50 million in a private equity fund with co-investment rights, meaning that when the fund looks for opportunities it can allow the investor to participate not only through the fund, but directly as well. An example of this would be when a fund is looking at investment in a $40 million company. That investment needs $30 million equity and $10 million in debt. The equity portion given by the fund (without co-investing) would be $30 million dollars. In the case of co-investing, the fund gives $20 million (in which the investor is participating through the fund) with the remaining $10 million (i.e. The difference between the $20 million in equity given by the fund and the $30 million equity needed) is offered to the investor to do on a direct basis resulting in the fund investing $20 million and the investor investing $10 million. When investors invest into a fund, they pay full fees, typically paying a 2% management fee and a 20% performance fee (i.e. “two and twenty”). By investing $10 million directly, other than a small deal origination fee, investors are able to reduce their overall fees. (For more on fees see Video #4). The fourth way to invest in private equity is through secondaries. In this example our investor makes a commitment to invest $50 million in a private equity fund by giving about $10 to $20 million dollars to the private equity fund up front for the first two fund investments. As more acquisitions are made, the private equity fund makes capital calls to the investor. The investor is usually locked into the private equity fund for seven to ten years (or longer). If the investor wants out of this agreement, the commitment can be sold to other investors. The sale can be of the entire commitment (which would include the existing deals that the private equity fund was already made, plus future capital calls) or it can be done through a structured secondary (selling different parts) where the investor may want to keep the existing investments and just sell the future commitments. As easy as an investor can sell a secondary, it can buy one as well.
Views: 8372 Steve Balaban
What is Return On Equity? Return On Equity or ROE is a financial ratio that can help you analyze the performance of a company or business unit from the perspective of the shareholder, and compare the financial performance to others. This video takes you through the Return On Equity formula, shows you how to calculate ROE, how to interpret ROE, and gives suggestions on how to improve Return On Equity. Return On Equity links together information from two of the three main financial statements, by taking the bottom line of net profit from the income statement and the equity or shareholder capital amount out of the right hand side of the balance sheet. ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital that a company owes on the balance sheet date. ROE is an important indicator of attractiveness of a business to shareholders. Can the company generate a good return on the equity that investors have invested in it? Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 14855 The Finance Storyteller
Private equity – investing directly in an unlisted business – is an established way for wealthy or sophisticated investors to tap into the potentially lucrative smaller company market. However, it can be high risk and time-consuming. If you are interested in investing directly into single companies – many of which qualify for EIS tax breaks – what are the golden rules to remember? This short video explains how single company investments can work and how Wealth Club can help. This video is not advice nor personal recommendation. The investments mentioned are not for everyone. Capital at risk. Tax benefits depend on circumstances and tax rules can change.
Views: 611 Wealth Club
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we learned the importance of buying a company that has a strong return on equity. Since the market price of the stocks you buy is dependent on the dividends and the growth of the book value, we can quickly learn that a company that grows it's book value at a faster pace is more valuable. When we assessed two different companies in the video, we created a situation where both companies had the exact same earnings. The difference between the companies was the size of their equity (or book value). When a company with a large amount of book value is compared to a company with less book value, the percent change in their growth will be much more difficult if earnings are similar. When a company consistently has a strong Return on Equity, we know as investors that the management of the company is properly reinvesting the earnings of the business into assets that will continue to grow the capital earned. This is very important since most of the earnings produced by a company are retained and not paid as a dividend. When a disciplined investor purchases companies with a sustained high ROE, their investments compound at a much higher rate than other assets. The great thing with purchasing companies with high ROEs is that it helps alleviate capital gains tax if the security is held for a long period of time.
Views: 135882 Preston Pysh
Private Equity Investments in Brazil We have assembled a panel of senior representatives from major private equity firms who are active in Brazil, a CEO and entrepreneur from a major airline experienced in using PE, and U.S. and Brazilian attorneys who will discuss key legal issues that PE investors need to consider. The panel discusses recent transactions, areas of focus, relative values, capital structures, and exit opportunities. They discuss lessons learned, areas of concern, and future outlook. Speakers: José Efromovich, CEO and Founder, Avianca Brazil Martin Escobari, Managing Director and Head of Latin America, General Atlantic Geoffrey Hamlin, Partner, Cartesian Capital Group Rodrigo Nascimento, Partner, Mattos Filho Antonio Del Pino, Partner, Latham & Watkins LLP
Views: 289 Brazilian-American Chamber of Commerce
Subscribe To ET Now For Latest Updates On Stocks, Business, Trading | ► http://goo.gl/5XreUq Subscribe Now To Our Network Channels :- Times Now : http://goo.gl/U9ibPb The NewsHour Debate : http://goo.gl/LfNgFF To Stay Updated Download the Times Now App :- Android Google Play : https://goo.gl/zJhWjC Apple App Store : https://goo.gl/d7QBQZ Social Media Links :- Twitter - http://goo.gl/hA0vDt Facebook - http://goo.gl/5Lr4mC G+ - http://goo.gl/hYxrmj
Views: 743 ET NOW
Live answers to your investment queries.
Views: 1813 Value Research
Apr.30 -- While China has attracted the most private equity deals over the last few years, Japan is now starting to play catch up. S&P estimates there were almost 700 PE and venture capital deals targeting a Japanese company totaling almost $22 billion dollars. According to Unison Capital's Chief Executive Officer Tatsuo Kawasaki, that figure is set to rise. He spoke to Bloomberg's Haslinda Amin at the Milken Institute Global Conference in Beverly Hills.
Views: 711 Bloomberg Markets and Finance
Investor's Guide: Investing in Equity, Advice for Long-Term Investors and more -~-~~-~~~-~~-~- Must Watch: "PM Narendra Modi Backs Vijay Mallya Says Rahul Gandhi" → https://www.youtube.com/watch?v=Vlj1C4zEE44 -~-~~-~~~-~~-~-
Views: 13325 ET NOW
Part 4: Long Term Vs Short Term Successful Equity Investing is not about the knowledge, it's more about your behavior. Successful Investors have a unique logical behavior pattern which separates them from the unsuccessful investors. An Investor Awareness Seminar, organised by Prudent CAS Ltd. for the Investors of their esteemed channel partners at Ahmedabad Management Association. Topic: Equity Investment (A Battle Between Logic and Emotion)
Views: 42357 Jigar Parekh
To know more about CFA/FRM training at FinTree, visit: http://www.fintreeindia.com For more videos visit: https://www.youtube.com/c/FintreeIndia?sub_confirmation=1 CFA | FRM | CFP | Financial Modeling Live Classes | Videos Available Globally Follow us on: Facebook: https://www.facebook.com/FinTree/ Instagram: https://www.instagram.com/fintree_education/ Twitter: https://twitter.com/Fin_Tree Linkedin: https://www.linkedin.com/company/fintree-education/ We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our Lead Trainer for CFA, Mr. Utkarsh Jain, during one of his live Session in Pune (India). To know more about CFA/FRM training at FinTree, visit: http://www.fintreeindia.com
Views: 952 FinTree
Warren Buffett, Berkshire Hathaway chairman and CEO, talks about volatility in the market, the value of American business and what to look for when investing. For more of Warren Buffett's wit and wisdom visit https://Buffett.CNBC.com » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Warren Buffett: Just Looking At The Price Is Not Investing | CNBC
Views: 1020992 CNBC
The Carroll School of Management presents the 12th Annual Finance Conference: Equity Investing in a Dynamic World featuring Steven Barry ’85, Chief Investment Officer, Fundamental Equity, Goldman Sachs, Vince Gubitosi ’94, President and Chief Investment Officer, Geode Capital Management, LLC, Jay Paul Leupp, Managing Director, Portfolio Manager, Lazard Asset Management, and Ronnie Sadka, Senior Associate Dean for Faculty; Professor and Chairperson, Finance Department, and Seidner Family Faculty Fellow, Carroll School of Management, Boston College.
Views: 513 Boston College Carroll School of Management
This segment of Zee Business brings to you advice on tips to keep in mind while investing in equity funds. Watch this video to know more. About Zee Business -------------------------- Zee Business is one of the leading and fastest growing Hindi business news channels in India. Live coverage of Indian markets - Sensex & Nifty -------------------------------------------------------------- You can also visit us at: https://goo.gl/sXWpTF Like us on Facebook: https://goo.gl/OMJgrn Follow us on Twitter: https://goo.gl/OjOzpB Subscribe to our other network channels: Zee News: https://goo.gl/XBvkjZ
Views: 9115 ZeeBusiness
If you're starting your first company, understanding stock, preferred stock, options, convertible notes and other fundraising instruments can be truly overwhelming. We didn't find a single video that covered this, so here we go. If you are an early-stage startup company in the tech space, the best way to raise capital is with a convertible note or a similar instrument. However, to understand how those work, we first need to understand how stock works. STOCK You are probably familiar with the term 'stock.' A company is divided into chunks, and each shareholder owns a certain percentage of the company, which gives control of company decisions, and a share of the profits. A PRICED ROUND: RAISING MONEY FOR STOCK The 'traditional' approach towards raising capital is with a priced round. Tech companies are different. Tech companies have tremendous scale potential and often fantastic margins. A software product or an app, for example, can realistically operate with 80%+ margins, and serve millions of customers around the world, with a minimal staff. Think of Uber, who raised $500,000 on their first round, and are now worth, well, billions of dollars. So the value of a startup is not related directly to their revenue, but to their potential. Some variables to take into account here are: - The market size, how many customers are there in the world. - The technology variable, is there a unique piece of tech that nobody else has, or that optimizes a process drastically? - Potential margins, how many employees are needed to serve 100,000 customers or 1,000,000 customers? When Instagram had 300 million users, their staff was 13 people. However, all these numbers are variables and theories, and nobody knows for sure. The valuation of a startup is defined by how much potential an investor sees in the business, how risky it is, and how much upside do they want in exchange for risking their money, just like a bet. These days, a reasonable number for a tech company like our theoretical FounderHub would be a $4,000,000 (pre-money) valuation. Again, assuming this is a high scale, high margin business. All of these decisions require negotiations, and lawyers, and signatures to be put in writing, and they can make the process take six months or more from 'agreeing to invest.' Since most early companies don't have six months, they often choose to go with a Convertible Note. If you want to run your own calculations, you can download the free template we have at FounderHub.io?utm_source=youtube.com&utm_medium=video&utm_campaign=video-content&utm_term=fundraising CONVERTIBLE NOTES A convertible note is an instrument that delays the valuation conversation, and it allows the company to access the capital sooner, with less negotiation and much smaller legal fees. A convertible note is like a loan, but instead of using an asset like a house for collateral, the company stock is the collateral. This means, obviously, that the investor also needs to believe in the business to invest, because the note intends to convert into stock. Like I said before, defining a company valuation is tough. Too many variables, too little data... so with a convertible note, the investor is saying: I'll give you the money for you to grow now. In a year or so we should have the data to support a priced, traditional round, so my investment will convert then, with the valuation and terms that the new investors define. So a convertible note is an investment that triggers, - Ideally, on a new round of funding. - Also ideally, if the company is acquired. - At a predefined deadline, often 18 or 24 months after the original investment. At this point, investors can negotiate a note extension, they can convert it at the Cap, or they can request a payback, again, if the company can afford it. Now, YCombinator and 500 Startups have both designed documents inspired by convertible notes, but simpler. And free. The KISS-A (Keep it simple security) and the SAFE (simple agreement for future equity) are simplified convertible note templates that you can use to raise money and skip lawyer fees. You can download it on our FounderHub site, and refer to our knowledge base for more details on completing it. They both work as a convertible note but reducing a lot of the paperwork requirements. Alright. We have videos coming on the process of incorporating a business, distributing founder stock and vesting. Let us know which of those topics you would like us to prioritize. If you found this useful, help us out by subscribing and sharing. ► Subscribe to our Channel Here http://www.youtube.com/subscription_center?add_user=slidebean -- About Us: Slidebean is a pitch deck creation tool with hundreds of templates available to use as a starting point. Thousands of companies have used our platform to pitch investors and raise capital. ---- Follow Us: Twitter: https://twitter.com/slidebean Linkedin: http://www.linkedin.com/company/slidebean
Views: 23031 Slidebean: Slides simple and beautiful
Curious about your company valuation? Sign up for free at https://www.equidam.com/ Even if investors don't address is directly, valuation is always the starting point of negotiations. Gianluca Valentini, co-founder of www.equidam.com, explains what is its relation with equity stake and amount invested, and what are acceptable ranges of equity stake at the different stages. For more tips check out: https://www.equidam.com/ranges-of-negotiation-at-different-stages-of-a-startup/
Views: 2672 Equidam
5 reasons you shouldn't invest in a REIT: Why Private Equity Real Estate Funds Are Superior Private REITs 1. Fees to Promote funds. Private REITs have been notorious for their high fees—and many sharing 10% with brokers. This upfront expense becomes almost impossible to recoup and offers no value to the properties or investors. In fact the Financial Industry Regulatory Authority (FINRA) now requires private REITs to provide statements to investors showing this drop immediately. This disclosure and public awareness apparently had a negative impact with the public with private REITs raising almost eighty percent less in funds. Meanwhile, more cash is flowing into private equity real estate, like Cardone Capital. I refuse to pay any fees or commissions to brokers, reducing ALL the cost of middle men. My company uses social media crowd funding to create awareness of the deals we are investing. That way ALL of the investors dollars are invested in the properties. 2. We Buy Then You Invest. With a REIT you invest money upfront before the properties are purchased and most of the time you don’t know what property you are invested. With the REIT the theory is you buy a diversified pool of properties, but in practice, REITs don’t start off with a pool of properties and they must start paying dividends to their investors so, REIT managers have the propensity to invest in properties to generate dividends to pay the investors. 3. Tax Advantages - With a Real Estate Investment Trust the investor is invested in a convertible stock certificate unlike the private equity investment that makes the investor a partner in the property, with the full backing of the real property. In a private equity fund you are a partner in the property rather than a holder of a piece of paper. The tax implications (to be covered in a bit) provides a massive benefit to the investor of a private equity fund over REIT. 4) Monthly Cash Distributions. Private REITs typically pay every quarter whereas a good private equity firm who manages cash flow and is personally invested in the properties is motivated to pay investors out monthly as they are motivated to pay themselves. As a real estate operator investing in a property I want to be paid monthly. If their is cash flow I demand we distribute monthly to the investors. 5) Private Equity Mentality vs REIT Mentality - The mindset of of private equity fund manager is about investing in real property not the day to day value of a piece of paper created by the Wall Street smarter chemist. In REITs profits take a back seat to Fees. REITs generate most fees through transactions and the SEC warns that deals can be struck just to generate fees. The private equity fund manager is driven by finding the right real estate assets that can produce cash flow over long periods of time and create appreciation for the fund manager and the investors. Whereas the REIT mentality is fee driven whereby they get to keep their jobs and fees are based on trades not the asset itself. 6) Taxes - One of the great benefits of real estate investing is the number of tax advantages provided through depreciation and long term capital gains. REITs do NOT share these tax advantages with its investors and instead each year send you a 1099 form, as though you work for them. The private equity firm passes all tax benefits on to its investors, including depreciation and capital recapitalization, while REIT payouts are taxed at an investor’s higher ordinary income rate and no depreciation deductions are passed on. Grant Cardone CEO CardoneCapital.com 800M AUM #business #realestate #investing Our offerings under Rule 506(c) are for accredited investors only. FOR OUR CURRENT REGULATION A OFFERING, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV. For our anticipated Regulation A offering, until such time that the Offering Statement is qualified by the SEC, no money or consideration is being solicited, and if sent in response prior to qualification, such money will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is qualified. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person's indication of interest involves no obligation or commitment of any kind. Our Offering Circular, which is part of the Offering Statement, may be found at https://cardonecapital.com/offering-1
Views: 21444 Grant Cardone
About CNBC-TV18: India's leading business news channel, CNBC-TV18 offers the most comprehensive coverage of businesses, the economy and the financial markets. Catch all your favourite shows, exclusive videos, big-ticket interviews and more here. You can also connect with CNBC-TV18 News Online Catch the latest news: http://www.cnbctv18.com/ Follow CNBC-TV18 round the clock: https://www.cnbctv18.com/live-tv/ Stay updated with all the market action: https://www.cnbctv18.com/market/stocks/live-blog Follow experts on the most vital topics: https://www.cnbctv18.com/expert-views/ Subscribe to our daily newsletter: https://www.cnbctv18.com/newsletter/ Subscribe to our Channel: https://goo.gl/hKwgtm Like us on Facebook: https://www.facebook.com/cnbctv18india/ Follow us on Twitter: https://twitter.com/CNBCTV18News
Views: 1175 CNBC-TV18
Equity investments that consist of less than 20% ownership of the investee are typically accounted for using the Fair Value Method. However, when the fair value of the investment cannot be easily determined (e.g., if it's an investment in a startup that isn't traded on an exchange), the investment should be accounted for at cost, minus any impairments. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 1559 Edspira
Learn all about accounting for equity investments in just a few minutes! Fabio Ambrosio, CPA, instructor of accounting at the Central Washington University, walks through the cost, equity, and consolidation methods to recognize equity investments.This video is part of a complete, condensed Principles of Accounting series presented in short, digestible summaries. Access the free study guides for Principles of Accounting here: https://www.coursehero.com/sg/principles-of-accounting/ Course Hero's Principles of Accounting video series covers the essentials of introductory accounting. Our short digest covers everything you need to know about the accounting cycle, accounting systems and controls, accounting for receivables and long-term assets, accounting for liabilities and equities, entity organizations and business analysis. The video series begins with an introduction to Generally Accepted Accounting Principles (GAAP) and an exploration of accounting systems. It continues with an exploration of journalizing, trial balances, and the adjusting process that leads to the creation of the four major financial statements companies produce: income statement, statement of owner’s equity, balance sheet and statement of cash flows. Along the way, you'll learn about: • GAAP and other legal requirements for accounting and reporting • The Accounting Equation • Single-Step and Multiple-Step Financial Statements • Double-Entry and Manual Accounting Systems • The General Ledger and Chart of Accountings • Trial balances and the adjusting process • Ethical standards in accounting The series continues by providing a deeper understanding of how entities employ accounting principles, including: • Accounting for merchandising businesses, including inventory costing methods and systems • Internal and cash controls • Accounting for receivables and long-term assets • Accounting for current liabilities and payroll, long-term liabilities and investments • Categories of businesses and the four types of business entities • Corporate annual reports Finally, the Principles of Accounting crash course includes a primer on business analysis tools, including preparation of a statement of cash flows and the uses ratio analysis. Additional concepts we cover in these quick videos include: accounts payable, accrual basis accounting, cash basis accounting, Financial Accounting Standards Board (FASB), periodic and perpetual inventory systems, horizontal analysis, vertical analysis, liquidity analysis, matching principle, proprietorship, limited liability company (LLC), partnerships, operating income, Sarbanes-Oxley Act (SOX), subsidiary ledgers and single-step income statements. Explore Course Hero’s collection of free Business and Accounting Study Guides here: https://www.coursehero.com/sg/ About Course Hero: Course Hero helps empower students and educators to succeed! We’re fueled by a passionate community of students and educators who share their course-specific knowledge and resources to help others learn. Learn more at http://www.coursehero.com. Master Your Classes with Course Hero! Get the latest updates: Facebook: https://www.facebook.com/coursehero Twitter: https://twitter.com/coursehero
Views: 28 Course Hero
If you're not sure what the difference is between investing in equity vs. investing in debt, I'll explain. I also explain why being an equity investor is more lucrative for passive investors and limited partners than being a debt investor. While it's not the most lucrative for the General Partners, it can still pay off in the long run, which is why all of our investors are equity investors. Thank you for watching this video. We post new real estate investing videos at least once a week, usually more! Hopefully you find value in my videos. If so, subscribe and share with others that should see it. We love hearing from our listeners, take a second and ask us a question, give us some tips of your own, or just say ‘Hey’ we always comment back! --- Subscribe to my channel here: http://www.youtube.com/bestevershow --- Joe Fairless controls over $460,000,000 worth of real estate which includes a portfolio of single family homes and eleven large apartment communities, all acquired through deal syndication. His goal is $1 Billion in real estate before his 40th birthday! Follow along as he goes after that goal and shares his lessons along the way. --- Follow my investing journey here: http://www.youtube.com/watch?v=kIu5ZLqWix8&list --- Host of Best Real Estate Investing Advice Ever show which is the world's longest running, daily real estate podcast. I've interviewed Robert Kiyosaki, Barbara Corcoran, Grant Cardone, Emmitt Smith, and many other real estate experts, every day for over 3 years! Check it out here: - iTunes - https://itunes.apple.com/us/podcast/best-real-estate-investing/id904025246?mt=2 - Stitcher - https://www.stitcher.com/podcast/joe-fairless/best-real-estate-investing-advice-ever?refid=stpr Author of Best Real Estate Investing Advice Ever which was personally endorsed by Barbara Corcoran who said "This is a no-fluff book that both experienced and beginning real estate investors can benefit from reading." If you're a multifamily investor, multifamily syndicator, apartment investor, passive investor, interested in multifamily syndication / apartment syndication, or apartment investing, and want to learn more or work with me personally, you can contact me here: http://joefairless.com/work-joe-3/ Stay in touch! To sign up for my newsletter with exclusive weekly content, email me here: [email protected] YouTube: http://youtube.com/bestevershow Facebook: http://facebook.com/joefairless/ Twitter: http://twitter.com/joefairless Website: http://joefairless.com Book: http://amzn.to/2yCiigX Podcast: http://bestevershow.com Facebook Group: http://facebook.com/groups/bestevershow iTunes: https://itunes.apple.com/us/podcast/best-real-estate-investing/id904025246?mt=2