Caia chapter 23 Samenvattingen, Aantekeningen en Examens

List major contrasts between venture capital and buyouts Whereas VC funds target nascent, start-up companies, buyouts target more established and mature companies. • VC is necessary to get a prototype product or service out the door. In a buyout, the capital is necessary not for product development but to take the company private so that it can concentrate on maximizing operating efficiencies. Venture capital relies on new technology or innovation; buyouts look to see where they can add ...

20-bagger - indicates a company that appreciates in value 20-fold compared to the cost of the venture capital investment. angel investing - refers to the earliest stage of venture capital, in which investors fund the first cash needs of an entrepreneurial idea. auction process - involves bidding among several private equity firms, with the deal going to the highest bidder. buy-and-build strategy - refers to the buying of a platform company with a well-developed managemen...