The rape of a mattress company

The investment firm, which bought Simmons in 2003, has pocketed around $77 million in profit, even as the company’s fortunes have declined. THL collected hundreds of millions of dollars from the company in the form of special dividends. It also paid itself millions more in fees, first for buying the company, then for helping run … Continue reading

Banks!

Banks –  Concerns for Startups  (via Pinsky Law, “Banks“) Banks are a major source of both short term and long term funding for many conventional companies. Through borrowing, an entrepreneur is able to acquire the funds he needs to operate his business without giving up control of a business. For startups the principal problem with … Continue reading

Mezzanine Investment

Mezzanine investment financing (also referred to as third-stage capital) refers to a later stage investment provided to a company that is already producing and selling a product or service, for the purpose of helping the company achieve a critical objective that, in many cases, will enable it to go public. Mezzanine investment financing provides for … Continue reading

Venture Capital

Venture capital is a kind of private equity. With venture capital, a big risk is taken in expectation of very high returns. Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. … Continue reading

Privately Held Companies

In our research on currency and securities printers, we’ve come across many privately held companies. As a brief review: Crane & Co. – privately held, still family-owned (non-family CEO) ABnote – privately held De La Rue – publicly traded, listed on the London Stock Market (DLAR) Giesecke & Devrient – privately held, still family-owned (non-family … Continue reading

Private Equity

The term private equity is a generic expression for investments in equity securities in companies which are not listed in any public stock exchange.  A private equity firm is an investment manager which raises pools of capital, typically in the form of private equity funds to invest. Private equity includes the following forms of investment: … Continue reading

Going Public: IPO

When a company chooses to go public, it must make an IPO (Initial Public Offering), which is the first sale of stock to the public by a private company. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the … Continue reading