When underwriting commercial loans, commercial lenders need to be very careful about properties that are leased out for far more than their fair market value. A story will make this clear. GrandpaJack was a brilliant man. He was also a darned fool. Forty-five years ago, he spotted the fact that Silicon Valley on the San…
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First a correction. A few days ago, I wrote a blog article about how deflation is sweeping the world. In that article, I mentioned that deposit rates in Germany are slightly positive. I am pretty sure that this statement was wrong. Listening to Bloomberg today, I just discovered that the yield on ten-yield German bunds…
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Venture capital firms are different from private investors in that they have raised capital from a number of high net worth individuals with the intent to make investments on their behalf into promising start up companies and expanding businesses so that they can ultimately take the business public via an IPO or sell the business…
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In the convoluted microcosmos of Silicon Valley, it is more common to find a person who is an ‘angel investor’ than a person who owns a bike. Angel investors by definition allocate a small amount of their own investment funds to support companies that give companies a financial taxi lift. One thing few people realize…
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There are many aspects that affect your financial performance and, in turn, affect the perceived value of your company. Being able to illustrate the stability of your revenue and earnings along with validating your growth prospects are important factors. Investors want to know that the company isn’t at any great risk of losing key employees…
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Getting into a business partnership has its benefits. It allows all contributors to share the stakes in the business. Depending on the risk appetites of partners, a business can have a general or limited liability partnership. Limited partners are only there to provide funding to the business. They have no say in business operations, neither…
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The other day, I was talking with an individual, a seasoned entrepreneur looking to raise a little capital for his next business, and he noted that he only needed a little bit of startup money to get the prototypes going, to prove concept, and to start making money. Yes, perhaps so, and perhaps not, but…
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Purchasing an established business can be a daunting and complicated process for many individuals. Understanding the steps involved in the acquisition and doing the necessary planning and preparation will enable the buyer to increase their chances for a successful transaction. Following an established and proven process will not only reduce the stress that often comes…
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Do you actually consider that a company with no real asset can value so much as $40 billion? Well, you are going to find out in this short article today. Today, I believe you will benefit from some of the simplest elements in valuing a company. So let’s begin, the 7 essential elements most companies…
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In order to get your business off the ground, or to continue operating, you must be able to obtain the financing you need. It’s not easy to get that money – especially if you lack business experience and don’t have a very good credit score. There are things you can do to increase your chances…
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