The following points highlight the eight main forms of institutional and bank finance. The forms are: 1. Term Loans/Project Finance 2. Loan Transfers 3. Non-Recourse Financing 4. Consortium Lending 5. Loan Participation 6. Bridging Finance 7. Reverse Mortgage 8. Transaction Loans. Form # 1. Term Loans/Project Finance: Term loans are granted for acquisition of fixed assets (land, building, machinery and [...]
The following main points highlight the thirteen main techniques used for restructuring the business. The techniques are: 1. Management Buy-Out (MBO) 2. Management Buy-In (MBI) 3. Strategic Alliances 4. Reverse Merger 5. Sell-Off 6. Divestitures 7. Slump Sale 8. Equity Carveout 9. Franchising 10. Intellectual Property Rights 11. Holding Companies 12. Going Private 13. Liquidation. Technique # 1. Management Buy-Out [...]
The following valuation methods are generally used basing on the industry averages or averages of a similar company in the same industry: 1. Dividend Yield Method 2. Earnings Yield Method 3. Return on Capital Employed Method 4. Price/Earning Method. 1. Dividend Yield Method: Ownership of shares in a company entails the holders of shares to receive dividends as and when [...]