Entrepreneurial finance:
Gespeichert in:
Hauptverfasser: | , |
---|---|
Format: | Buch |
Sprache: | English |
Veröffentlicht: |
Stamford
South-Western Cengage Learning
2014
|
Ausgabe: | 5. ed. |
Schlagworte: | |
Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | XXVI, 722 S. graph. Darst. |
ISBN: | 9781285425757 |
Internformat
MARC
LEADER | 00000nam a2200000 c 4500 | ||
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020 | |a 9781285425757 |9 978-1-285-42575-7 | ||
035 | |a (OCoLC)894789008 | ||
035 | |a (DE-599)BVBBV042070054 | ||
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100 | 1 | |a Leach, J. Chris |e Verfasser |0 (DE-588)170820890 |4 aut | |
245 | 1 | 0 | |a Entrepreneurial finance |c J. Chris Leach ; Ronald W. Melicher |
246 | 1 | 3 | |a Finance for entrepreneurs |
250 | |a 5. ed. | ||
264 | 1 | |a Stamford |b South-Western Cengage Learning |c 2014 | |
300 | |a XXVI, 722 S. |b graph. Darst. | ||
336 | |b txt |2 rdacontent | ||
337 | |b n |2 rdamedia | ||
338 | |b nc |2 rdacarrier | ||
650 | 4 | |a Venture capital | |
650 | 4 | |a Entrepreneurship | |
650 | 4 | |a Business enterprises / Finance | |
650 | 4 | |a Unternehmen | |
650 | 4 | |a Business enterprises |x Finance | |
650 | 4 | |a Entrepreneurship | |
650 | 4 | |a Venture capital | |
650 | 0 | 7 | |a Unternehmensgründung |0 (DE-588)4078599-3 |2 gnd |9 rswk-swf |
650 | 0 | 7 | |a Finanzierung |0 (DE-588)4017182-6 |2 gnd |9 rswk-swf |
650 | 0 | 7 | |a Entrepreneurship |0 (DE-588)7588126-3 |2 gnd |9 rswk-swf |
655 | 7 | |0 (DE-588)4123623-3 |a Lehrbuch |2 gnd-content | |
689 | 0 | 0 | |a Entrepreneurship |0 (DE-588)7588126-3 |D s |
689 | 0 | 1 | |a Unternehmensgründung |0 (DE-588)4078599-3 |D s |
689 | 0 | 2 | |a Finanzierung |0 (DE-588)4017182-6 |D s |
689 | 0 | |5 DE-604 | |
700 | 1 | |a Melicher, Ronald W. |e Verfasser |4 aut | |
856 | 4 | 2 | |m Digitalisierung UB Regensburg - ADAM Catalogue Enrichment |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=027510751&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
999 | |a oai:aleph.bib-bvb.de:BVB01-027510751 |
Datensatz im Suchindex
_version_ | 1804152514041348096 |
---|---|
adam_text | Contents
Preface
xviii
About the Authors
xxv
PARTI
THE ENTREPRENEURIAL ENVIRONMENT I
CHAPTER I
Introduction to Finance for Entrepreneurs
3
1.1 The Entrepreneurial Process
5
1.2
Entrepreneurship
Fundamentals
6
Who is an Entrepreneur?
6
Basic Definitions
7
Entrepreneurial Traits or Characteristics
7
Opportunities Exist but not Without Risks
8
1.3
Sources of Entrepreneurial Opportunities
9
Societal Changes
9
Demographic Changes II
Technological Changes II
Emerging Economies and Global Changes
13
Crises and Bubbles
14
1.4
Principles of Entrepreneurial Finance
15
Real, Human, and Financial Capital must be Rented from Owners (Principle
#1) 16
Risk and Expected Reward Go Hand in Hand (Principle
#2) 16
While Accounting is the Language of Business. Cash is the Currency (Principle
#3) 16
New Venture Financing Involves Search. Negotiation, and Privacy (Principle
#4) 17
A Venture s Financial Objective is to Increase Value (Principle
#5) 18
It is Dangerous to Assume that People Act against Their Own Self-Interests
(Principle
#6) 19
Venture Character and Reputation can be Assets or Liabilities (Principle
#7) 20
1.5
Role of Entrepreneurial Finance
21
1.6
The Successful Venture Life Cycle
23
Development Stage
24
Startup Stage
24
Survival Stage
24
Rapid-Growth Stage
25
Early-Maturity Stage
25
Life Cycle Stages and the Entrepreneurial Process
25
VII
Viii Contents
1.7
Financing through the Venture Life Cycle
26
Seed Financing
26
Startup Financing
27
First-Round Financing
28
Second-Round Financing
29
Mezzanine Financing
29
Liquidity-Stage Financing
30
Seasoned Financing
31
1.8
Life Cycle Approach for Teaching Entrepreneurial Finance
31
Summary
35
CHAPTER
2
Developing the Business Idea
41
2.1
Process for Identifying Business Opportunities
43
2.2
To Be Successful. You Must Have a Sound Business Model
44
Component I: The Business Model Must Generate Revenues
45
Component
2:
The Business Model Must Make Profits
45
Component
3:
The Business Model Must Produce Free Cash Flows
46
2.3
Learn from the Best Practices of Successful Entrepreneurial Ventures
47
Best Marketing Practices
47
Best Financial Practices
48
Best Management Practices
49
Best Production or Operations Practices are also Important
49
2.4
Time-To-Market and Other Timing Implications
50
2.5
Initial Litmus
Tesť
for Evaluating the Business Feasibility of an Idea
51
2.6
Screening Venture Opportunities
53
An Interview with the Founder (Entrepreneur) and Management Team·. Qualitative
Screening
54
Scoring a Prospective New Venture·. Quantitative Screening
58
Industry/Market Considerations
61
Pricing/Profitability Considerations
63
Financial/Harvest Considerations
65
Management Team Considerations
67
Opportunity Screening Caveats
68
2.7
Key Elements of a Business Plan
69
Cover Page. Confidentiality Statement, and Table of Contents
70
Executive Summary
71
Business Description
72
Marketing Plan and Strategy
72
Operations and Support
72
Contents
IX
Management
Team
73
Financial Plans and Projections
73
Risks and Opportunities
74
Business Plan Appendix
75
Summary
76
Appendix A Applying the
VOS
Indicator™: An Example
82
PART
2
ORGANIZING AND OPERATING THE VENTURE
87
CHAPTER
3
Organizing and Financing a New Venture
89
3.1
Progressing through the Venture Life Cycle
91
3.2
Forms of Business Organization
91
Proprietorships
94
General and Limited Partnerships
95
Corporations
98
Limited Liability Companies
101
3.3
Choosing the form of Organization: Tax and Other Considerations
102
3.4
Intellectual Property
105
Protecting Valuable Intangible Assets
106
What Kinds of Intellectual Property can be Protected?
106
Other Methods for Protecting Intellectual Property Rights
113
3.5
Seed, Startup, and First-Round Financing Sources
115
Financial Bootstrapping
118
Business Angel Funding
119
First-Round Financing Opportunities
122
Summary
123
CHAPTER
4
Preparing and Using Financial Statements
129
4.!
Obtaining and Recording the Resources Necessary to Start and Build
a New Venture
131
4.2
Business Assets. Liabilities, and Owners Equity
132
Balance Sheet Assets
134
Liabilities and Owners Equity
135
4.3
Sales, Expenses, and Profits
136
4.4
internai
Operating Schedules
138
4.5
Statement of Cash Flows
142
X
Contents
4.6
Operating Breakeven Analyses
144
Survival Breakeven
144
Identifying Breakeven Drivers in Revenue Projections
149
Summary
151
Appendix A NOPAT Breakeven-, Revenues Needed to Cover Total Operating Costs
158
CHAPTER
5
Evaluating Operating and Financial Performance
161
5.1
Users of Operating and Financial Performance Measures by
Ufe
Cycle Stage
163
5.2
Using Financial Ratios
164
5.3
Cash Burn Rates and Liquidity Ratios
167
Measuring Venture Cash Burn and Build Amounts and Rates
167
Beyond Burn: Traditional Measures of Liquidity
169
Interpreting Cash-Related and Liquidity-Related Trends
170
5.4
Leverage Ratios
172
Measuring Financial Leverage
172
Interpreting Changes in Financial Leverage
175
5.5
Profitability and Efficiency Ratios
176
Income Statement Measures of Profitability
176
Efficiency and Return Measures
178
Interpreting Changes in Profitability and Efficiency
180
5.6
Industry Comparable Ratio Analysis
181
5.7
A Hitchhiker s Guide to Financial Analysis
182
Summary
185
PART3
PLANNING FOR THE FUTURE
195
CHAPTER
6
Managing Cash Flow
197
6.1
Financial Planning throughout the Venture s Life Cycle
198
6.2
Surviving in the Short Run
200
6.3
Short-Term Cash-Planning Tools
202
6.4
Projected Monthly Financial Statements
207
6.5
Cash Planning from a Projected Monthly Balance Sheet
209
6.6
Conversion Period Ratios
210
Measuring Conversion Times
212
Interpreting Changes in Conversion Times
215
Summary
217
Contents
ΧΙ
CHAPTER
7
Types and Costs of Financial Capital
227
7.1
Implicit and Explicit Financial Capital Costs
229
7.2
Financial Markets
229
7.3
Determining the Cost of Debt Capital
231
Determinants of Market Interest Rates
233
Risk-Free Interest Rate
234
Default Risk Premium
235
Liquidity and Maturity Risk Premiums
238
A Word on Venture Debt Capital
240
7.4
What is Investment Risk?
241
Measuring Risk as Dispersion around an Average
241
Historical Return versus Risk Relationships
244
7.5
Estimating the Cost of Equity Capital
247
Cost of Equity Capital for Public Corporations
248
Cost of Equity Capital for Private Ventures
250
Sources and Costs of Venture Equity Capital
252
7.6
Weighted Average Cost of Capital
254
A Life Cycle-Based WACC Example
255
Summary
256
Appendix A Using WACC to Complete the Calibration of EVA
264
CHAPTER
8
Securities Law Considerations when Obtaining Venture Financing
267
8.1
Review of Sources of External Venture Financing
269
8.2
Overview of Federal and State Securities Laws
271
Securities Act of
1933 272
Securities Exchange Act of
1934 272
Investment Company Act of
1940 273
Investment Advisers Act of
1940 273
Jumpstart
Our Business Startups Act of
2012 274
State Securities Regulations: Blue-Sky Laws
275
8.3
Process for Determining whether Securities Must be Registered
275
Offer and Sale Terms
275
What is a Security?
276
8.4
Registration of Securities Under the Securities Act of
1933 278
8.5
Security Exemptions from Registration Under the
1933
Act
281
8.6
Transaction Exemptions from Registration Under the
1933
Act
284
Private Offering Exemption
284
Accredited Investor Exemption
286
Xii Contents
8.7 SECs Regulation D:
Safe-Harbor Exemptions
287
Rule
504:
Exemption for Limited Offerings and Sales of Securities Not Exceeding
$1
Million
288
Rule
505:
Exemption for Limited Offers and Sales of Securities Not Exceeding
$5
Miliion
289
Rule
506:
Exemption for Limited Offers and Sales Without Regard to Dollar Amount
of Offering
291
8.8
Regulation A Security Exemption
292
8.9
JOBS Act Innovations:
293
Summary
293
Appendix A Schedule A
297
Appendix
В
Selected SEC Regulation
D
Materials
302
Appendix
С
Other Forms of Registration Exemptions and Breaks
314
PART
4
CREATING AND RECOGNIZING VENTURE VALUE
317
CHAPTER
9
Projecting Financial Statements
319
9.1
Long-Term
Financial Planning throughout the Venture s Life Cycle
321
9.2
Beyond Survival: Systematic Forecasting
322
Forecasting Sales for Seasoned Firms
322
Forecasting Sales for Early-Stage Ventures
325
9.3
Estimating Sustainable Sales Growth Rates
329
9.4
Estimating Additional Financing Needed to Support Growth
332
The Basic Additional Funds Needed Equation
333
Impact of Different Growth Rates on AFN
336
Estimating the AFN for Multiple Years
336
9.5
Percent-of-Sales Projected Financial Statements
337
Forecasting Sales
338
Projecting the Income Statement
339
Projecting the Balance Sheet
340
Forecasting the Statement of Cash Flows
342
Financing Cost Implications Associated with the Need for Additional Funds
343
Summary
344
Contents Xiii
CHAPTER
IO
Valuing Early-Stage Ventures
351
10.1 What is a Venture Worth?
352
Does the Past Matter?
353
Looking to the Future
353
Vested Interests in Value: Investor and Entrepreneur
354
10.2
Basic Mechanics of Valuation: Mixing Vision and Reality
356
Present Value Concept
356
If You re Not Using Estimates. You re Not Doing a Valuation
358
Divide and Conquer with Discounted Cash Flow
359
10.3
Required versus Surplus Cash
362
10.4
Developing the Projected Financial Statements for a DCF Valuation
364
10.5
Just-In-Time Equity Valuation:
Pseudo
Dividends
369
10.6
Accounting versus Equity Valuation Cash Flow
376
Origins of Accounting Cash Flows
376
From Accounting to Equity Valuation Cash Flows
377
Summary
381
CHAPTER II
Venture Capital Valuation Methods
399
11.1
Brief Review of Basic Cash Flow-Based Equity Valuations
401
11.2 Basic Venture Capital Valuation Method
403
Using Present Values
406
Using Future Values
406
H.3 Earnings Multipliers and Discounted Dividends
407
11.4
Adjusting VCSCs for Multiple Rounds
409
First Round
410
Second Round
410
11.5
Adjusting VCSCs for Incentive Ownership
411
First Round
412
Second Round
412
Incentive Ownership Round
412
11.6
Adjusting VCSCs for Payments to Senior Security Holders
413
11.7
Introducing Scenarios to VCSCs
414
Utopian Approach
415
Mean Approach
416
Summary
42!
XIV
Contents
PARTS
STRUCTURING FINANCING FOR THE GROWING VENTURE
445
CHAPTER
12
Professional Venture Capital
447
12.1
Historical Characterization of Professional Venture Capital
449
12.2
Professional Venture Investing Cycle: Overview
453
12.3
Determining (Next) Fund Objectives and Policies
454
12.4
Organizing the New Fund
455
12.5
Soliciting Investments in the New Fund
458
12.6
Obtaining Commitments for a Series of Capital Calls
459
12.7
Conducting Due Diligence and Actively Investing
460
12.8
Arranging Harvest or Liquidation
468
12.9
Distributing Cash and Securities Proceeds
468
Summary
469
CHAPTER
13
Other Financing Alternatives
473
13.1
Facilitators, Consultants, and Intermediaries
475
13.2
Commercial and Venture Bank Lending
476
13.3
Understanding Why You May Not Get Debt Financing
478
13.4
Credit Cards
480
13.5
Foreign Investor Funding Sources
481
13.6
Small Business Administration Programs
482
Overview of What the SBA Does for Small Businesses
482
Selected SBA Loan and Operating Specifics
484
13.7
Other Government Financing Programs
489
13.8
Receivables Lending and Factoring
489
13.9
Debt, Debt Substitutes, and Direct Offerings
491
Vendor Financing: Accounts Payable and Trade Notes
491
Mortgage Lending
492
Traditional and Venture Leasing
492
Direct Public Offers
493
Summary
493
Appendix A Summary of Colorado Business
Financiai
Assistance Options
496
CHAPTER
14
Security Structures and Determining Enterprise Values
501
14.1
Common Stock or Common Equity
503
14.2
Preferred Stock or Preferred Equity
503
Contents
XV
Selected Characteristics
504
Convertible Preferreds
505
Conversion Value Protection
507
Conversion Protection Clauses
508
14.3
Convertible Debt
510
14.4
Warrants and Options
512
14.5
Other Concerns about Security Design
517
14.6
Valuing Ventures with Complex Capital Structures: The Enterprise Method
518
Summary
525
PART
б
EXIT AND TURNAROUND STRATEGIES
537
CHAPTER
15
Harvesting the Business Venture Investment
539
15.1
Venture Operating and Financial Decisions Revisited
541
15.2
Planning an Exit Strategy
542
15.3
Valuing the Equity or Valuing the Enterprise
544
Relative Valuation Methods
544
Dividing the Venture Valuation Pie
546
15.4
Systematic Liquidation
547
15.5
Outright Sale
548
Family Members
548
Managers
549
Employees
553
Outside Buyers
554
15.6
Going Public
556
Investment Banking
556
Some Additional Definitions
559
Other Costs in Issuing Securities
561
Post-IPO Trading
561
Contemplating and Preparing for the IPO Process
563
Summary
568
CHAPTER
16
Financially Troubled Ventures: Turnaround Opportunities?
575
16.1
Venture Operating and Financing Overview
577
16.2
The Troubled Venture and Financial Distress
578
Balance Sheet Insolvency
579
Cash Flow Insolvency
580
Temporary versus Permanent Cash Flow Problems
581
XVi
Contents
16.3
Resolving Financial Distress Situations
582
Operations Restructuring
584
Asset Restructuring
587
Financial Restructuring
590
16.4
Private Workouts and Liquidations
590
Private Workouts
591
Private Liquidations
592
Venture Example: Jeremy s MicroBatch Ice Creams, Inc.
592
16.5
Federal Bankruptcy Law
593
Bankruptcy Reorganizations
594
Reasons for Legal Reorganizations
594
Legal Reorganization Process
596
Bankruptcy Liquidations
599
Summary
604
PART
7
CAPSTONE CASES
611
CASEI
Eco-Products. Inc.
613
CASE
2
Coral Systems, Inc.
645
CASE3
Spatial Technology. Inc.
673
Glossary
699
Index
709
|
any_adam_object | 1 |
author | Leach, J. Chris Melicher, Ronald W. |
author_GND | (DE-588)170820890 |
author_facet | Leach, J. Chris Melicher, Ronald W. |
author_role | aut aut |
author_sort | Leach, J. Chris |
author_variant | j c l jc jcl r w m rw rwm |
building | Verbundindex |
bvnumber | BV042070054 |
classification_rvk | QP 230 QP 700 |
ctrlnum | (OCoLC)894789008 (DE-599)BVBBV042070054 |
dewey-full | 658.15 |
dewey-hundreds | 600 - Technology (Applied sciences) |
dewey-ones | 658 - General management |
dewey-raw | 658.15 |
dewey-search | 658.15 |
dewey-sort | 3658.15 |
dewey-tens | 650 - Management and auxiliary services |
discipline | Wirtschaftswissenschaften |
edition | 5. ed. |
format | Book |
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genre | (DE-588)4123623-3 Lehrbuch gnd-content |
genre_facet | Lehrbuch |
id | DE-604.BV042070054 |
illustrated | Illustrated |
indexdate | 2024-07-10T01:11:55Z |
institution | BVB |
isbn | 9781285425757 |
language | English |
oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-027510751 |
oclc_num | 894789008 |
open_access_boolean | |
owner | DE-355 DE-BY-UBR |
owner_facet | DE-355 DE-BY-UBR |
physical | XXVI, 722 S. graph. Darst. |
publishDate | 2014 |
publishDateSearch | 2014 |
publishDateSort | 2014 |
publisher | South-Western Cengage Learning |
record_format | marc |
spelling | Leach, J. Chris Verfasser (DE-588)170820890 aut Entrepreneurial finance J. Chris Leach ; Ronald W. Melicher Finance for entrepreneurs 5. ed. Stamford South-Western Cengage Learning 2014 XXVI, 722 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Venture capital Entrepreneurship Business enterprises / Finance Unternehmen Business enterprises Finance Unternehmensgründung (DE-588)4078599-3 gnd rswk-swf Finanzierung (DE-588)4017182-6 gnd rswk-swf Entrepreneurship (DE-588)7588126-3 gnd rswk-swf (DE-588)4123623-3 Lehrbuch gnd-content Entrepreneurship (DE-588)7588126-3 s Unternehmensgründung (DE-588)4078599-3 s Finanzierung (DE-588)4017182-6 s DE-604 Melicher, Ronald W. Verfasser aut Digitalisierung UB Regensburg - ADAM Catalogue Enrichment application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=027510751&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
spellingShingle | Leach, J. Chris Melicher, Ronald W. Entrepreneurial finance Venture capital Entrepreneurship Business enterprises / Finance Unternehmen Business enterprises Finance Unternehmensgründung (DE-588)4078599-3 gnd Finanzierung (DE-588)4017182-6 gnd Entrepreneurship (DE-588)7588126-3 gnd |
subject_GND | (DE-588)4078599-3 (DE-588)4017182-6 (DE-588)7588126-3 (DE-588)4123623-3 |
title | Entrepreneurial finance |
title_alt | Finance for entrepreneurs |
title_auth | Entrepreneurial finance |
title_exact_search | Entrepreneurial finance |
title_full | Entrepreneurial finance J. Chris Leach ; Ronald W. Melicher |
title_fullStr | Entrepreneurial finance J. Chris Leach ; Ronald W. Melicher |
title_full_unstemmed | Entrepreneurial finance J. Chris Leach ; Ronald W. Melicher |
title_short | Entrepreneurial finance |
title_sort | entrepreneurial finance |
topic | Venture capital Entrepreneurship Business enterprises / Finance Unternehmen Business enterprises Finance Unternehmensgründung (DE-588)4078599-3 gnd Finanzierung (DE-588)4017182-6 gnd Entrepreneurship (DE-588)7588126-3 gnd |
topic_facet | Venture capital Entrepreneurship Business enterprises / Finance Unternehmen Business enterprises Finance Unternehmensgründung Finanzierung Lehrbuch |
url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=027510751&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
work_keys_str_mv | AT leachjchris entrepreneurialfinance AT melicherronaldw entrepreneurialfinance AT leachjchris financeforentrepreneurs AT melicherronaldw financeforentrepreneurs |