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| Add-on Services |
Add-on Services are the services provided by an investor, e.g. a venture capitalist that are not monetary in nature, such as helping to assemble a management team and helping to prepare the company for an IPO.
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| Balanced Scorecard |
The Balanced Scorecard methodology is an analysis technique designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals. The introduction of a balanced scorecard is often the ultimate step of an controlling solution integration project. |
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| Benchmarks | Benchmarks are performance goals against which a company's success is measured. Benchmarks are often used by investors to help determine whether a company should receive additional funding or whether management should receive extra stock. |
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| Bridge Loan | A bridge loan is a short-term loan that is used until a person or company can arrange a more comprehensive longer-term financing. The need for a bridge loan arises when a company runs out of cash before it can obtain more capital investment through long-term debt or equity. |
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| Business Angels | A Business Angel or Angel Investor is an individual who provides capital to one or more startup companies. Unlike a partner, the angel investor is rarely involved in management. Angel investors can usually add value through their contacts and expertise. |
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| Business Plan |
A business plan is a document reflecting a companies or projects past, present and future activities in all relevant respects. A full business plan includes the following items: executive summary, business idea, management team members, marketing: analysis and strategy, business model and organisation, timeline including main milestones, Risk: internal and external,Financial plan and an appendix explaining relevant estimations in more detail.
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| Buyout | A buyout is defined as the purchase of a company or a controlling interest of a corporation's shares or product line or some business. A leveraged buyout is accomplished with borrowed money or by issuing more stock. |
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| Buyout / Acquisition | A stage in the maturity of a business, or a situation created by special circumstances, where a product line, business segment, or entire business is purchased by an outside company or perhaps by the existing management of the business. The process involves thorough valuations of the target business, sophisticated structuring and extensive negotiations of the terms of the transaction. A firm may specialize in providing these services and may arrange for the placement with other firms and institutions, which may be required to complete the transaction. |
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| Capital Gain | A Capital Gain is the gain to investor from selling a stock, bond or mutual fund at a higher price than the purchase price. The capital gain is usually the amount realized (net sales price) less your investment (adjusted tax basis) in the property. |
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| Capital under management | Capital under management is the amount of capital available to a management team for venture investments.
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| Closing | Closing is the final event to complete the investment, at which time all the legal documents are signed and the funds are transferred. |
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| Competitive Strategies |
According to Michael Porter's Generic Competitive Strategies (ways of competing) a firm's relative position within its industry determines whether a firm's profitability is above or below the industry average.
The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry:
1. Cost Leadership
2. Differentiation
3. Cost or differentiation focus on niche markets
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| Confidence Level | The confidence level is the degree of likelihood that a startup will be able to accomplish the goals described in its business plan. More generally, a statistical calculation measuring the degree of certainty about a correlation, result or forecast.
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| Controlling | Industry best practice controlling solutions imply far more then simple control of achievements or costs by a special team of accountants. Controlling means to systematically and periodically plan and budget key objectives top-down bottom-up, analyse achievements against plans, inform relevant staff and support decision makers.
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| Convertibles | Convertibles are the corporate securities, usually preferred shares or bonds, that can be exchanged for a set number of another form, usually common share, at a pre-stated price. Convertibles are appropriate for investors who want higher income than is available from common stock, together with greater appreciation potential than regular bonds offer. From the issuer's standpoint, the convertible feature is usually designed as a sweetener, to enhance the marketability of the stock or preferred. |
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| Critical Success Factor (CSF) | Critical Success Factors (CSF) are those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals. |
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| Critical To Quality (CTQ) | CTQs (Critical to Quality) are the key measurable characteristics of a product or process whose performance standards or specification limits must be met in order to satisfy the customer. They align improvement or design efforts with customer requirements.
CTQs represent the product or service characteristics that are defined by the customer (internal or external). They may include the upper and lower specification limits or any other factors related to the product or service. A CTQ usually must be interpreted from a qualitative customer statement to an actionable, quantitative business specification.
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| Cross Docking |
Cross Docking is a distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage, and selection operations, it can significantly reduce distribution costs.
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| Customer Relationship Management (CRM) | Customer Relationship Mangement (CRM) is an integrated approach to acquiring new customers, caring for existing customers and retaining customers. By enabling organizations to manage and coordinate customer interactions across multiple channels, departments, lines of business, and geographies. Ultimately CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance.
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| Deal Flow | The Deal Flow is the rate at which investment offers are presented to funding institutions. |
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| Debt Financing | Debt Financing refers to a firm raising money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal and interest on the debt. |
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| DMAIC | The Six Sigma project management approach: Define, Measure, Analyse, Improve, Control. |
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| Drive-By Deal | Drive-By Deal is a slang often use when referring to a deal in which a venture capitalist invests in a startup with the goal of a quick exit strategy. The VC takes little to no role in the management and monitoring of the startup.
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| Due Diligence |
Generally, Due Diligence refers to the care a person or company should take before entering in an agreement or transaction with another party. Therefore due diligence is the process of investigation and evaluation, performed by investors, a company's management or related consulants, into the details of a potential investment, merger or joint venture, such as an examination of operations and management and the verification of material facts.
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| Equity financing | Equity financing is a term used for company's issuance of shares of common or preferred stock to raise money. Equity financing is commonly done when its per share prices are high-the most money that can be raised for the smallest number of shares. |
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