We discussed the concept of economic value added or the value above the return expected by investors in a previous article. This article address another measure of shareholder value, which is market value added (MVA). Market Value Added is determined by assessing the difference between market value of the company to that of the amount … More Defnining Market Value Added
According to corporate finance, the concept of Economic Value Added (also known by the acronym of EVA™) is the estimate of a firm’s economic profit. In other words, it is the value above the return expected by investors. The return expected by investors is commonly referred to as cost of capital, which is the combination … More What is Economic Value Added?
The term “bootstrapping” is used to describe when a firm or start-up business determines to use internal resources rather than seek the assistance of external investments. This can not only develop the company internal cash flow but also work to keep expenses at a minimum. Bootstrapping can be addressed in a variety of ways. The … More The Business of Bootstrapping
In the funding world, at any given time there are an array of projects that belong to the same industry while others may be completely unique. In both cases, a factor that can at times assist in the decision-making process is if there is the existence of a competitive advantage. By definition, a Competitive Advantage … More What Is Competitive Advantage?
In any type of financial market, money/wealth is transferred from one group to another. This transfer can, however, take place directly or indirectly. When wealth changes ownership directly (known as direct finance) the saver (or investor) and the borrower deal directly with one another. An example could be as simple as a loan to a … More Direct vs. Indirect Finance
We are sometimes approached by promoters wondering what exactly is considered seed capital when it comes to funding a project. Briefly summarized, seed capital is the investment of funds that serves to start a business by people related to the entity (i.e. its owners or their relatives). In the context where the entity is ready … More Insight Into Seed Capital
Capital Corp Merchant Banking 