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Due Diligence Report - Process, Importance and Types.

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  What is Due Diligence Report?   Due diligence is a simplistic process that includes research and analysis before an acquisition, or investment. Also, it is done before a business partnership or bank loan, to understand and find out the value of the subject undertaken for due diligence. Further it is relevant to ensure that there are no issues involved, which can be a blocker in the process.   Here’s how the due diligence process works:   Analysis of multiple aspects is executed to find out the estimated value of the respective entity based on its market potential.  Assessment and monitoring of the assets and liabilities in detail to determine the financial viability of the entity.  Examining the operations and verification of the data related to the entity that are relevant to the proposed transaction .  Types of Due Diligence Report. Business Due Diligence: This type of Due Diligence is about the detailed assessment of the parties invo...

How do Private Equity Companies Help To Sell Your Business?

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  How do Private Equity Companies Help To Sell Your Business? Private Equity refers to ownership in an entity that is not publicly traded or listed. Since these funds are private, their capital is not listed on the public exchange. Private Equity acts as a great investment option for high-net-worth individuals and institutional investors to directly invest and acquire an equity stake in companies. Private Equity companies require direct investment to buy equity investment in companies that require a substantial amount of money and the investors must have a solid financial background. How Does Private Equity Work? Vulture Financing: Also known as Distressed funding, money is invested in underperforming or troubled business units or assets. The motive behind this type of investment is to make required changes in the operations and the management of the business unit that results in increased revenues and profits.  Leveraged Buyouts: The process involves buying out a company ...

Need of Fairness Opinion Valuation for Business Growth.

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Need of Fairness Opinion Valuation for Business Growth. In the world of finance, Fairness Opinion Valuation is a determining factor to conclude whether the proposed stock price is justified to the target company. Let’s understand its advantages and other attributes in this article. For any corporate management, it is a responsibility towards their shareholders that a fairness opinion report is prepared to showcase that the management is working in their best interest. And to make a valid and genuine report, it is prepared by independent advisors hired by the company to confirm that the terms are fair. This is essential for the satisfaction of the shareholders, otherwise, there can be a section of shareholders, who may have doubts which any corporate management should avoid.  What is Fairness Opinion Valuation? A fairness opinion valuation report is prepared by the qualified analysts, usually of an investment bank, and these reports are paid. The independent analysts hired examin...

Project Techno-Economic Viability Study- Why Do We Need It

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No project can be absolutely risk free and hence the analysis of the degree of technical risk and associated financial viability, through a Techno-Economic Viability Study (TEVS) is necessary to assist lenders to take a view on the acceptability of the degree of risk involved in a project.   HOW TO GO ABOUT IT  First and foremost we have to gather information about the project, its promoters – their financial strength, business acumen, experience, key personnel in the organization; We have to examine the product description, types and uses, application, etc.In several cases it has been observed that the product has limited use and demand is fluctuating. Study the current market scenario, both Indian and global, market forecast – demand/supply scenario, target market, barriers to entry and competition analysis; These are important parameters and must never be ignored in a study.

What can make to Rich?

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In today’s world everyone wants some way to earn more money in less time for them Stock market is the good but risky way but they have no idea where to start? In this article you’ll learn how to get started from zero to making money in the stock market. HERE ARE 6 KEY THINGS TO LOOK AT WHEN PICKING WINNING STOCKS. #1 – Stick to Companies You Know A common advice in Stock market is to diversify, which is good advice. However, not knowing anything about the companies will eliminates the benefit of diversification. To start firstly list out 5 Companies that know have great products. Listing these companies is the first step to make future earnings. Use your professional experience and life experiences in listing these 5 Companies. These are companies you would love to own for the long term because you know they have staying power and are well regarded by the industry in which they work. Source: https://www.resurgentindia.com/what-can-make-to-rich

Loan Syndication : A Complete Overview

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  Loan syndication   refers to the process where multiple lenders come together to fund various portions of the loan asked by a single borrower. The process is majorly done when the amount is very large for a single lender or when the risk exposure levels are quite high. Therefore, multiple lenders form an association or syndicate to fund the requested capital. The borrower can be a corporate entity, government or an individual project. In corporate financing, loan syndication process is often used for diverse business reasons like project financing, mergers, acquisitions, buyouts, etc. where huge amount of capital is required and is normally outside the resource capacity of a single lender. Each lender’s liability/rights is only limited to the amount of their share of the total loan amount. In the process of  loan syndication,  one lender acts as a manager or arranging bank on the behalf of other lenders who administers the loan. The agreements between the lenders a...

Long Term Project Finance Mechanism: Need For A Re-look

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  The long-term   Project Finance   for infrastructure and industrial sectors essentially involves a limited recourse to financial structure, since project debt and equity utilized for constructing the project are paid back from the cash flows generated by the project itself. This implies financial engineering of lending, solely against the cash flows of the project, not relying upon any other securities. A detailed evaluation and thorough analysis of the various risks involved are undertaken and the mitigation steps are identified for the prospective lenders, promoters, and other parties involved. The term loans for large projects are generally repayable in up to 20-25 years depending upon the economic life of the project, after the initial moratorium during the gestation period. The current unprecedented situation arising out of covid-19 disruptions and responses from the regulators has provided us with a lot of learning inputs, necessitating a re-look at the funding me...