Wednesday, January 29, 2020
Private Equity Deals Essay Example for Free
Private Equity Deals Essay Private equity can be described as investing in a company through a negotiated process. Investment entails transformational, value-added and active management strategy. Private Equity investments can be undertaken following three categories. These are venture capital, Buy-out and special situation investment. Venture capital can be described as an investment to create a new company or expand a smaller company that is presently undeveloped. Buy-out investment involves acquisition of a significant portion of investment in a mature company so as to gain control or ownership of the company. Special situation investment involves changing government regulations or industry trends on investment due to availability of opportunity (Robinson and Cottrell, 2007). This paper will broadly analyze buy out investment in detail, discussing its history, growth, merits and failures.            Private equity firms accrue interest on investment through any of the three ways. These include an IPO, sale or merger and recapitalisation. Private equity firms sell unlisted securities directly to investors through private offering or private equity fund which attracts different sources of contributions from small investors who prefer to invest directly to investors due to the risks associated with private equity funds. Private equity fund require a large amount of money to allow entry which cannot be afforded by most private equity firms. Moreover Private equity firms prefer to invest in firms or investors where the firm can accrue returns after a short duration unlike private equity funds which can take up to twelve years to accrue interests. Private equity firms evaluate availability of opportunity to avoid investing in a failing company which, led to heavy capital losses by the firm. The risk has been noted to be higher in venture capital funds (Lasen, 2006).            Private equity industry was begun in 1946 by the American Research and Development Corporation (ARD) to encourage private institutions provides funding to soldiers who returned from World War II. ARD aimed to provide skills and funding to the management and this would stimulate success of the companies accrue profits. The success of the industry led to permeation of few wealthy families into the industry in 1970s. The industry focussed more on debt financed leveraged buy-outs (LBOs)            A Leveraged buy-out (LBO) occurs when a financial sponsor gains control of a majority of a target company’s stock ownership through the use of borrowed money or debt (Lasen, 2006). A Leveraged buy-out is a widely used strategy where a company acquires another company through significant amount of borrowed money. In most cases, the assets of the acquiring company and the company being acquired are used as security for the loans. Leveraged buyouts allow companies to make acquisitions without committing a lot of capital. In an LBO 70% debt to 30% equity ration is allowed though the debt can amount 90% top 95% of target Company total capitalisation. Private equity firm prefer to sue leveraged buyouts for two reasons. Use of debt that is widely used in US increased financial return to the private equity sponsor. Debts are exempted from taxation and hence the returns from debt are greater that from cash (Lasen, 2006; Robinson and Cottrell, 2007).            Many countries for example Germany have introduced new tax laws with an aim of discouraging leveraged buyouts through reduction of tax shield effectiveness. The performance of private equity firms that used LBO as their main source of financing went into bankruptcy in 1980s and 1980s. The insolvency was largely contributed by excessive debt financing amounting up to 97%. This led to higher interest payment that exceeded the company’s operating cash flow. Most companies were taken over by other companies and government.            In the recent past private equity industry has experienced a boom as noted in Great Britain as well as USA. Most pension scheme companies have invested in private equity firms and in particular LBOs. The size of private equity pool increased by 37% in 1994 in Great Britain. There is great disparity between foreign private equity pool and United States which present possibility of future growth. The rapid growth in the private equity industry has led to poor returns on capital invested. The returns from public equity deals are higher and this challenges the stability of private equity industry in using LBOs as way of financing (Clark and Whiteside, 2003).            PED projects were initially known to have positive impact in paediatrics industry. The PED projects however are on the decline. This can be attributed to poor management and appointment of nationals who have worked in public service to oversee them yet they have little experience or knowledge that is needed. The PED has encountered pressure from fear of disappointing former and future employees and this has in most cases resulted in failure or problem in implementation of the projects (Saylor, Swenson, Reynolds and Taylor, 1999). References Clark, G. L., Whiteside, N. (2003) Pension Security in the 21st Century: Redrawing the Public-Private Debate. Oxford: Oxford University Press. Robinson, M. J., Cottrell, T. J â€Å"Investment Patterns of Informal Investors in the Alberta Private Equity Market†Journal of Small Business Management, 45, (2007):11-89. Larsen, D. L. â€Å"Challenges to the Private Equity Industry†Journal of Accountancy, 202, (2006):112-156. Saylor, C. F., Swenson, C., Reynolds, S., and Taylor, M â€Å"The Paediatric Emotional Distress Scale: a Brief Screening Measure for Young Children Exposed to Traumatic Events.†Journal of Clinical Child Psychology. 28.1. (1999): 34-70.
Tuesday, January 21, 2020
Woodstock 1969 Essay -- essays research papers
Woodstock ‘69 Many large concerts occurred throughout America in the summer of 1969, but none were as well known and symbolic as Woodstock. Its message was clear; three days of Peace and Music. Its impact on America’s culture and society as well as its youth will not be forgotten for many years to come.      Four men named Michael Lang, Artie Kornfield, John Roberts, and Joel Rosenman originally established Woodstock. The men’s initial idea for the festival was to promote the idea of a new recording studio in Bethel, New York, which is where the event actually took place. (Jacksonville.net) Because of the extensive amount of rain that fell before and during Woodstock, the site was changed twice and ended up on Max Yasgur’s farm. (Bethelwoodstockmuseum.com) This resulted in the loss of preparation time. The stage had not been entirely put up and the sound system was dangerously assembled. There were many other problems that occurred as a result of the mud produced during the rain. Most of the gates and fences were not put up which allowed many people to enter the festival for free.(Jacksonville.net) The mud also created a major cleanup project after the festival ended.      Woodstock gathered an unexpectedly large attendance. Only 50,000 to 100,000 people were expected to arrive at the site. These numbers seemed small compared to the 400,000 to 500,000 people who converged on the area on August 15, 16, and 17 of 1969. (Webster’s) Many expected singers and bands could not arrive due to traffic backed up for miles along all the roads leading to the area. It was said that nearly one million people could have attended the concert if it had lasted longer. (Visi.com) Many recognized musicians preformed at the concert such as Janis Joplin, Jimi Hendrix, Creedence Clearwater Revival, The Who, Jefferson Airplane, and many others. (Home.columbus.rr.com) Truly by the first day, as the musicians looked out upon the vast crowd, they must have known that Woodstock was not going to be just another concert that would be forgotten. On the outside, Woodstock could just be considered another concert for the youth of the time to hear their favorite music, but it can be seen that it was much more than that. Although the music was a large part of the festival, there would be no reason for it to be remembered this long if that w... ...stock fans that made the trip to all three festivals bearing the â€Å"Woodstock†name. It seemed that the other men and women that made up the rest of the audience were nearly all there to get drunk and destroy anything they could get their hands on. By the end of the concert, nearly all of the stage and equipment was destroyed. Women were raped and all souvenirs such as shirts and posters were stolen. (MTV Woodstock Uncensored) The acts displayed at Woodstock 99’ could be summed up in two words: destructive force. It went beyond misguided violence to such a point as to bring down some of the original Woodstock’s glory. Unfortunately now when people think of Woodstock they will also think of the destruction that occurred during its latest attempt at recreation. Despite people’s desire to bring back the feeling of the original Woodstock, all that can remain is its effect on the people who experienced it and the affect on the culture they lived in. The concert was necessary to have because it eased tension in a time of history that was full of war and prejudices. Its stories will be told, some good, some bad, but the desire that people feel to experience it firsthand will never be lost.
Monday, January 13, 2020
Haier
MGF 403 Assignment 4 Was Haier’s decision to globalize into developed markets early on a good strategy? Haier focus on difficult market first. In this context, difficult means developed and big for the market ,for example, Europe and United States markets . Zhang decides to aim for harder market first because he thinks that after Haier can conquer the developed market, the emerging or developing market should be relatively easy to penetrate. Besides, a lot of other Chinese firms is going towards the emerging markets such as Southeast Asia.Therefore, Haier has a different management in not doing what others do. It is a good thing that Haier distribute niche products and offer many different varieties in different markets with being responsive towards customers need and feedback. In this case, Haier learns in getting to know how the market behaves as well as the competitors around. Unfortunately, there are a few weaknesses in this strategy. First of all, Haier could not be in th e scale as the other big competitors therefore Haier will not receive a large market share in developed markets.Plus, Haier in the developed market is very new and unknown by people. In addition, certain foreign markets perceive Chinese products, especially in household appliances and electronic devices, as a relatively poor quality products. This is the first impression held by most people. Can Haier build on its success in niche products to become a dominant global brand in high-end white goods? As long as Haier try to adapt their product into the current objective market, such as the water test in the washing machines, fridge temperature, and voltage, they can gain customer recognition and satisfaction.However, in order to introduce Haier products into high-end white goods can be relatively difficult because there are still many big local companies that has the trend design and are more recognized by the people in the society. Well, starting from a unique niche product is a very good start to differentiate Haier brand to the other and promote Haier to the society. With Haier brand sounds familiar already, Haier can gradually increase its sales. And from that point onwards, Haier can control and monitor its business. Having said that Haier can do well in the specified market such as the student and offices refrigerators ,but Haier will face hallenge in launching all its standard white goods considering the outside factors. Is Haier’s â€Å"three thirds†strategy a viable or visible approach? Haier’s â€Å"three third†strategy comprises of one-third from goods produced and sold in China, one-third produced in China and sold overseas, and one-third produced and sold overseas. In order to analyze whether this strategy fits or not, we have to take a look at the market condition. If the objective market is a growing market, this strategy might apply well since we can monitor the allocation of resources and focus on important areas in the market.On the other hand, if the market that we choose is in mature stage, this strategy might not be a good option because the company will tend to focus on a certain area of the market and disregard the other. Additionally, if there is a market that outperform the other markets, the allocation of resources in the particular market will be given to the other lower market in order to achieve the equally one-third weighted goal among them. Therefore, the potential in getting more revenue at the outperforming market will be disrupted.
Sunday, January 5, 2020
Gender Gap - 2092 Words
English 1200 31 October 2013 The Gender Gap in the Business World Throughout history, gender inequality has shown to be an issue across the globe, especially in the workplace. Men have always had a greater and more powerful presence in careers of all kinds. Today, in the sports marketing industry, this proves to be true as women constantly battle to make advances within their companies and outshine their male colleagues. The purpose of this paper is to explore the issue of the â€Å"gender gap†in the business world, specifically sports marketing for the National Football League and how this issue may be solved: by presenting a sense of self-confidence in professional women. Employers constantly hold women to different standards than†¦show more content†¦Although it is not expected that women be marketed to in the exact fashion that men are, it is understandable that a woman would like to be treated as more of an equal. When asked about her opinion on marketing to different genders, Shelley Rider stated, â€Å"although a talented professional should be capable of successfully marketing to both sexes, it is vital to a company that both sexes are represented in a board room where decisions are made. From my experience in marketing athletic apparel for Champion, I have found that the most successful and effective marketing strategies come from groups with both men and women present.†For women hoping to enter a career like sports marketing, it can be a very intimidating process. From childhood, women learn that men are leaders and women stay at home to care for their families. Every female student will experience gender inequality at some point in her academic career as well, especially during undergraduate studies. First, men are much more likely to choose business as a major during college which means more men than women are enrolled in undergraduate business programs (Ball). Being a minority of any kind in the classroom can be discouraging for students, thus leaving them with less motivation and confidence. â€Å"The gender stereotypes introduced in childhood are reinforced throughout our lives and become self-fulfilling prophecies. Most leadership positions are held by men, so women don t expect toShow MoreRelatedGender Gap1785 Words  | 8 PagesGender Wage Gap Awareness Tell a story here for context and interest We have all heard about the gender wage gap on the news or in the current debates, but why is it any concern to you? I understand that this issue might not apply to a college student; however, you need to be aware of this issue since it could affect your major and future profession. Surprisingly, this issue even applies to males. Some argue that women are facing a wage gap because they choose more flexible professions, lackRead MoreThe Gap Of Gender Income Gap886 Words  | 4 Pagesmany people are now bringing up a pay gap between genders, there is something being over looked that proves there isn’t a pay gap, but something else. The Gender Income Gap is a supposed payment gap between men and women, stating that to every man’s dollar a woman only gets payed seventy cents. Statements like theses can grab people’s attention and get them to believe this without much proof of it actually existing. Most people get there information about the gap from surveys over all women and menRead MoreGender And Gender Pay Gap1173 Words  | 5 Pages Gender pay gaps have been a hot topic over the last several years. In my findings, I found three articles that stood out the most to me, as well as some statistical information. Gender pay gap is an interesting subject because it happens all across the United States, as well as in other countries worldwide. This pay gap can affect women of all ages, race, religion and educational levels. What is gender pay gap? The gender pay gap is defined as the difference between women and men’s full time averageRead MoreGender And Gender Leadership Gap1798 Words  | 8 PagesGender Leadership Gap Catalyst (2012) indicated that corporate world data showed that women represented only 4% of chief executive officer positions within Fortune 500 companies; similarly, DeFrank-Cole et al. (2013) advised that the lack of progress for women is dumbfounding considering that for the last 25 years; women’s entrance into professional and managerial careers has been on par with their male colleagues. Relatedly, Barsh (2012) identified a disparity of gender representation in seniorRead MoreGender Gap In Pay1574 Words  | 7 PagesIntroduction Gender Pay Gap also referred to as Gender wage gap, gender income difference or male-female income difference refers to the difference between the earning of men and women (Victoria, 2006). The European Union defines the Gender Pay gap as the difference between men and women’s hourly earnings (OECD, 2012). The difference may be measured on hourly, weekly, monthly, or yearly earning. The difference is expressed as a percentage of the men’s earning. However, the difference varies fromRead MoreGender Wage Gap And Gender Inequality Essay912 Words  | 4 Pagespay†by Lanier Isom is about the gender wage gap. The gender wage gap is the difference between male and female earnings. Isom basically states in this article that the wage gap exists because of gender, however many experts state that the wage gap simple does exists do to a factor such as gender, but of multiple factors. These factors being that the statistics presented in favor of a Wage gap are incorrect an d manipulated to seem correct. That the so called wage gap may be in fact do to the choiceRead MoreGender Wage Gap And Gender Inequality855 Words  | 4 Pages In general, the wage gap has narrowed at a slow, and uneven, pace over last three decades. Recent data shows that women in the American workforce earn 77 cents for every dollar a man earns (Trevino). The existence of this â€Å"gender wage gap†has been an issue since women entered the workforce. The ongoing issue of the past has now become an apparent problem in our modern-day, progressive society. Women nowadays have opportunities that were not obtainable in past decades but must overcome, or ignoreRead MoreGender Income Gap2396 Words  | 10 Pagesï » ¿ Gender Income Gap Diane Smith ENG 122 English Composition II Instructor Stephanie Derisi August 30, 2014 Gender Income Gap In American society today there is an imbalance in the gender income gap between men and women in the work force. Many factors such as discrimination, productivity, educational background and disproportional hours worked contribute to this ongoing challenge. While many are skeptical, others remain to have strong beliefs that women and men are treated equallyRead MoreGender Inequality And Gender Pay Gap1543 Words  | 7 Pagesthe gender pay gap in the UK. These theories are taste discrimination, statistical discrimination, human capital and occupational segregation. Other research and data are included in this essay as evidence to support the different theories. The four theories covered in this essay all provide some explanation for the gender pay gap in the UK, some more than others – statistical discrimination theory having the highest explanatory power for the magnitude of this pay gap. The gender pay gap can beRead MoreIs The Gender Pay Gap?1880 Words  | 8 Pagesthe gender pay gap. Most people who use this phrase in casual conversation do not really know what this entails. It is much more than men earning more than women. The significance of this pay discrepancy becomes much more apparent when looking at the bigger picture. Over an entire lifetime of working, a woman making only 77 cents to the male dollar loses a total of $1.2 million dollars over the course of her working life (Murphy Graff, 2005). A risk of poverty for women living with a pay gap is
Subscribe to:
Posts (Atom)