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Early Buyout in business

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Why an early buyout may be profitable for your business

For many entrepreneurs, it is always very difficult to let go. They mostly are sentimental about it; to give up the business they had grown and nurtured might seem too hard of a thing to do. But sometimes it may be best to let go, or share ownership with another party. This is always too much to bear for the entrepreneur, but sometimes it is the best option. Especially when an early buyout offer is received. I am sure you would be asking yourself what a buyout is? .. Let me break it down for you. [Read more…] about Early Buyout in business

Valuation of Common Stock

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Stock Valuation

Investors buy common stock with the hope that they would be able to recoup the cost of their investment in the form of returns on the investment. Since common stock is equity that is perpetual in nature, the return on investment would be in the form of capital gains when it is sold (if it is sold higher than it is bought) or cash dividends. [Read more…] about Valuation of Common Stock

Mutual Funds

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Introduction to Mutual Funds

Mutual funds are very popular types of investment funds in the US. They are known as an open end company under federal securities law.

What is a mutual fund?

To elaborate, A mutual fund is a pool of funds professionally managed for the benefit of all shareholders. A Mutual fund can be seen as a company which invests in diversified portfolio of securities to minimize risks. Mutual funds get the money they invest from shareholders, and they use this money to purchase securities such as stocks and bonds with the goal of bringing higher returns to the shareholders. [Read more…] about Mutual Funds

Enterprise Value vs Equity Value

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Introduction to Enterprise value and Equity Value

Enterprise value is the sum of all ownership interests in a company and claims on its assets from both debt and equity holders. Enterprise value represents the full cost of acquisition of a company, It can be used to value the obligations to settle or the costs to pay for a company who wants to takeover or acquire another. Enterprise value can be derived by summing up the equity value, total debt, preferred stock and non-controlling interests and then deducting cash and cash equivalents. [Read more…] about Enterprise Value vs Equity Value

Forward Contract

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30th july 2015
Thursday, left my house at 6.45 and surprisingly got to the office by 7:30. Today is environmental so I am sure that is the reason I was able to get to the office that early considering the time I left my house. I got to the office and filled some petty cash vouchers then after that, not much to do again so as I was about reading, a colleague of mine in the marketing unit asked me if I could help her edit some pictures that they took of people that wanted to open Rsa (Retirement Savings Account) accounts with them. They snapped it with a phone, and they were a lot of distracting objects in the background. They needed a clear white background and instinctively they knew that I was the man for the job. [Read more…] about Forward Contract

Public Equity vs. Private equity

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Public equity vs. private equity

They are public and private equities, the ones earlier discussed can be grouped under public equities. Private equities on the other hand as the name implies are private. Private equity are illiquid because shares cannot be easily traded. Share price is negotiated between the firm and its investors, and unlike public equities they are no requirements of disclosures by the government or exchange commission.
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Deal Tickets

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What is a deal ticket?

23rd of july 2015

Thursday, woke up early as usual and got to the office at 7:45am. My system had already been installed on tuesday,and even though it was an old system pulled from their stores,I was still very happy that I would be doing something meaningful with my time. So off to working on the system. My senior colleague sent deal tickets to my outlook email and came to explain how I would do it and then gave me treasury bill instruction forms and money market instruction forms to key into the deal tickets sent to me.
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Investment Policy Statement

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14th August 2015
Friday, just one day before the weekend……yaaaay!!… I got to the office and was immediately summoned, we were doing reconciliations and accounting for things that needed to be cleared up with the firs (federal inland revenue service). Things like the vat of the management fees, and pension contributions for the employees for 2009, 2010 and 2011. Since the basis period for tax is on the preceding year basis, we had to look at records of 2008 for the tax year of 2009. I was saddled with the tax of reconciling the pension contributions by matching up the records in the system with the records in the cheque register. It was fun though, and surprisingly I ended up enjoying it. [Read more…] about Investment Policy Statement

The Investment process in Private Equity

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4th august.2015

Got to the office by 8, and on getting to my table, i switched on my system. Then I quickly browsed for foreign exchange news because I wanted to order something from USA.  I saw it was dropping rapidly in the foreign exchange market, as a result of a restriction by the CBN that banks should not accept deposits to domiciliary accounts.
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