Private Capital Markets

by Robert T. Slee

• ISBN13: 9780471656227
• ISBN10: 0471656224
• Format: Paperback
• Copyright: 2004-05-01
• Publisher: WILEY

Summary

A theoretical and practical guide that enables readers to make sound investment and financing decisions This book is a technical finance book that surveys the private capital markets-the major uncharted financial market. Representing nearly half of the U.S. gross national product, these markets are largely ignored, partially because of the difficulty obtaining information and because of the lack of a unified structure to approach them. This book provides a structured framework that owner-managers and their professional advisors can use to effectively deal with the complicated issues of valuation and capital structure and transfer issues. Robert T. Slee, CBA, CPIM (Charlotte, NC), is President of Robertson Foley, an investment banking firm providing corporate finance service to private companies.

Author Biography

Robert T. Slee, CBA, is President of Robertson & Foley, a middle-market investment banking firm. He has published more than seventy-five articles on private finance topics in a variety of legal and business journals, including the Business Journal, Lawyers Weekly, Business Appraisal Practice, Ventures, M&A Today, and Valuation Strategies. He is a board member of numerous professional organizations and private companies. In addition to being a Phi Beta Kappa graduate of Miami University, he received a master’s degree from the University of Chicago and an MBA from Case Western Reserve. He can be contacted at [e-mail].

Table of Contents

Acknowledgements.

Foreword.

1. Private Capital Markets.

PART ONE: BUSINESS VALUATION.

2. Private Business Valuation: Introduction.

3. World of Market Value.

4. Asset Sub World of Market Value.

5. Financial Sub World of Market Value.            

6. Synergy Sub World of Market Value.       

7. Fair Market Value.                                                     

8. Fair Value.

9. Economic Value.

10. Insurable Value.

11. Impaired Goodwill.

12. Intangible Asset Value.

13. Other Values.

14. Private Business Valuation: Conclusion.

PART TWO: CAPITAL STRUCTURE.

15. Capital Structure: Introduction.

16. Bank Lending.

17. Government Lending Programs.

18. Equipment Leasing.

19. Asset Based Lending.

20. Factoring.

21. Mezzanine Capital.

22. Private Equity.

23. Capital Structure: Conclusion.

PART THREE: BUSINESS TRANSFER.

24. Business Transfer: Introduction.

25. Employee Stock Ownership Plans.

26. Management Transfers.

27. Charitable Trusts.

28. Family Transfers.

29. Co-Owner Transfers.

30. Outside Transfers: Retire.

31. Outside Transfer:  Continue.

32. Going Public, Going Private.

33. Business Transfer: Conclusion.

34. Conclusion.

Private Capital Markets.

What We Don't Know.

A Final Thought.

Appendix A: Corporate Finance Theory:  Application to the Private Capital Markets.

Appendix B: Principle of Substitution.

Appendix C: IBA Standards: Business Appraisal Standards.

Appendix D: Private Equity Securities.

Appendix E: Sample Preferred Stock Offering Term Sheet.

Appendix F: Private Placements.

Appendix G: Sample Management Buyout Letter of Intent.

Glossary.

Index.