Explore how entrepreneurs make financing decisions when they are faced with timing issues and low bargaining power versus VCs. Mindersoft Stephen R. Chapin Jr., the CEO of a new startup, Mindersoft, Inc., must evaluate an offer from a venture capital firm in March 1997. The firm, Novak Biddle Venture Partners, offers to invest $2.0 million for 40 percent of the company resulting in a $5 million post-money valuation for the firm. He is concerned that the valuation offered by the venture capitalist is too low. He believes that the premoney valuation of the company should be at least $10 million based on the potential profitability of the company and the successful efforts to date in lining up several key sponsorships with national retailers.
This stage is used to help realise if the current financial position is likely to lead to achieving the goals you set out – this can be done through research of seeking out professional advice. The next stage is Decide – this is where you decide on your action points to achieve your goals. This can be done through deciding to use financial products to achieve your goals, setting budget to decrease expenditures or exploring increasing income or holding back on planned expenditures. Stage 3, Act, is the implementation stage. This is putting your action points from the Decide stage into action to achieve the goals laid out in the assess stage – whether it is shopping around for the best value financial products, or looking for ways to increase your income.
April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and possible outcomes about potential future financial investment decisions, and the tax ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the purchase of a manufacturing company Smithton Widgets which is very profitable. Mr. Jones is a majority shareholder in another C-Corp. Known in this case as Johnson Services which has accumulated significant losses.
The candidate will develop a change management project plan, assign resources and develop a reporting process. The candidate will then present their analysis and project plan to management for approval. Procedure 1. Review the simulated workplace information for Fast Track Couriers. 2. Develop a change management strategy for Fast Track, which you will present to management (your assessor) for approval, by following steps 3–8 below.
The direct method is relies on changing the contractual characteristics of Asset and Liabilities to reach a particular duration and maturity gap to get over any Asset and Liability mismatch. On other hand the synthetic method relies on using derivatives such as interest rate swaps, future, options and other customized instruments like AIRS. Since the direct method is not always possible using the synthetic method give higher degree of flexibility to Asset –Liability management process. Banc one can use the following financial instruments ( off –balance sheet) to hedge against interest rate risk : • Futures : is an agreement between buyer and seller to exchange a specific amount of financial products at a specific price in a specific future date. The management must be very careful to follow the regulatory and the accounting rules that govern the use of future contract.
Timothy T. Riley SOC-100 October, 20, 2013 David Claerbaut Globalization: A Closer Look In today’s economy multinational corporations are outsourcing at an astounding rate. These conglomerates are making their mark through dominating the business arena through globalization and world trade. Companies like Ford motor company, General Motors, and Wal-Mart just to name a few are considered to be the major power players in the industry. Multinational companies are considered a threat to national independence to secure satisfactory working environments. The world’s fortune 500 companies controlled an astounding 70% of the trade market, and 80% of foreign investment, and 30% of the (GDP), gross domestic product.
Meet with a union representative (your assessor) to receive and discuss the results of the survey. Anticipate possible resistance by this stakeholder and promote your plans to gain acceptance. Ask for additional input to help you revise your change management communications strategy. 4. Draft revised communications plan and overall project plan (from Assessment Task 2) in consideration of barriers identified through consultation process (with your assessor acting as a union representative) and those identified in risk analysis provided in Appendix 3.
Week 4 Homework Assignment Chapter 21 1. Which of the following are legal and acceptable reasons for the high level of merger activity in the U.S. during the 1980s? a. Synergistic benefits arising from mergers. b. A profitable firm acquires a firm with large accumulated tax losses that my be carried forward.
Identify major operational change requirements: a. identify changes due to performance gaps b. identify changes due to business opportunities c. identify changes due to threats d. identify changes due to management decisions. 7. Identify specialists to be consulted to assist with identifying change needs: a. identify specialists you will engage to help identify change requirements and be prepared to explain your reasons for engaging these specialists b. identify what consulting model you would adopt to engage the specialists and be prepared to explain why you would use this model. 8. Assume your assessor is a specialist/expert of the kind you have identified in step 7.
Zeus's Primary Investors (250 clients) A typical Client Profile High-‐Net worth Individual or insAtuAon Long-‐term investors Risk averse VolaAlity averse Special concerns: taxaAon, distribuAon Aming, liquidity and legaliAes Individual PorNolios , 45% InsAtuAonal PorNolios, 31% Common Trust Funds, 12% InsAtuAonal PorNolio's Investors Mutual Funds, 12% CorporaAons, 47% FoundaAon & Endowments, 49% Insurance Companies, 4% 3. Describe the advantages and disadvantages of Zeus’s current investment process. • On general, when an asset management firm is fledged into each class asset, a form of specialty emerges for each fund manager, so if a fund manager requires to invest in the other fund manager’s asset class, all he has to worry about is the asset allocaAon decision,