The Four Star Investor » Finance

How to Finance your Start-up Business “The 100 Strong”

Sat, 06 Aug 2011 18:37:35 +0000

100 Aspiring Entrepreneurs for one year all working together to accomplish ONE SINGLE GOAL. TO RAISE $10 MILLION DOLLARS IN START-UP CAPITAL TO BE DIVIDED EQUALLY AMONGST ALL 100 PARTICIPANTS. Register Now! the100strong.webs.com Our Mission is Simple. Over the course of 1 year 100 Aspiring Entrepreneurs each get 1000 people, businesses or organizations to donate $100.00 each. And at the end of the year the proceeds are divided equally amongst all 100 participants. This would potentially give each participating entrepreneur $100000.00 in start-up capital at the end of one year with no strings attached. There are: *No Sign-up Fees* No Monthly Membership Fees* No Minimum Quotas to Meet* There is only one requirement: Each participant must make a commitment to work diligently for one year to raise funds for the organization. Register Now! the100strong.webs.com

Finance & Investment Tips : Market Value of Gold in Grams

Wed, 29 Jun 2011 18:41:00 +0000

The market value of gold in grams fluctuates as the market does, with the financial value of gold becoming more valuable as the market risk gets higher. Buy gold, the oldest financial instrument in the world, as an answer to inflation and mutual funds withadvice from a registered financial consultant in this free video on finance and investment. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

BG finance director cashes in some chips

Fri, 25 Mar 2011 18:40:02 +0000

BG finance director cashes in some chips
LONDON (SHARECAST) – BG has been a star performer among the giant oil and gas companies, thanks to its stake in the huge oil finds being made offshore Brazil and its finance director has decided to take profits on his stake in the company.

Turnaround Finance – Solution by Vultures or Angels?

Mon, 07 Mar 2011 18:49:54 +0000

Turnaround Finance – Solution by Vultures or Angels?

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Home Page > Finance > Turnaround Finance – Solution by Vultures or Angels?

Turnaround Finance – Solution by Vultures or Angels?

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Posted: May 15, 2007 |Comments: 0
| Views: 174 |

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An injection of turnaround finance involves saving a potentially insolvent company from irreversible insolvency and returning the company to a stable financial and operational position. The objective is to achieve this whilst maximising creditors’ interests and the interests of employees, managers and shareholders. Popularised by such media productions as Dragon’s Den (starting in Japan, now exported to the USA and UK), private wealth may be granted where the investor believes there is a future for the business. This article deals with turnaround finance for both under-performing businesses and businesses that are either insolvent or potentially insolvent.

The Progress Path

Turnarounds are achieved by a combination of financial, crisis management, restructuring and insolvency skills. The first step is to determine why the company is in the state it is. Realistically, is there anything that can be done to reverse the trend. Analysis is the key to really get into the problem. The analysis will resemble the three legged stool approach. The ‘legs’ vary, but essentially the analysis will get into these three areas: possibilities for restructure, viability and management

Restructure

Even a formal restructure involving insolvency doesn’t have to conclude the company. Many companies have found that this experience has forced a re-think of the company mission and a focus of action. But the majority of turnaround finance initiatives result in informal restructuring which is generally better for creditors, customers, employees, banks and shareholders. The restructure may necessitate job loss and lean arrangements with creditors. It may involve closing some facilities to reduce overhead or consolidating divisions to eliminate duplicate administrative functions. It might be necessary to sell off underperforming divisions of the company and outsource some functions to other parts of the world with less expensive labour rates.

Viability

This is the ‘leg’ that varies, sometimes it’s in the guise of the finance package. But whatever finance is required, whatever the state of the company and it’s creditors – is the company viable? Does it have a sustainable market? Does it have a future for it’s goods or services? If it’s a new business in something like internet technology, the answer to this question may not be straightforward and need significant analysis and business instinct. For older industries the past history of similar ideas will help greatly.

Management

Of all issues involved in the turnaround, the most difficult is getting the company to recognise deficiencies in management. Weaker members of the management team need to be replaced and this is very difficult for the board to be objective about. The management of any company do not want to know that their company is struggling because of the obvious implication of where decisions are made resulting in the problem. Many management teams won’t accept that they need help until the last moment – but the best help is the help administered early. The resulting action may have to be decisive and definite, a.k.a brutal.

Conclusion

The most famous example of a turnaround success is Canary Wharf in London that had serious financial problems but is now one of the major world financial centres. Sadly this example involved formal restructuring which meant insolvency, then to rise from the ashes. Most companies can avoid this by excellent services of turnaround finance companies. These entities can rise to be major players in their market and can thank the time when they had to call in extra experience along with their turnaround finance.

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By Baron Turner of Beer and Young, Experts in Turnaround Finance, Company Rescue, Business Angels. If you need a company doctor, if you’re a struggling company, if you are concerned about future performance and profitability – these guys are the experts to bring you back to profitability and greater health than before. Beer and Young have a panel of business angels waiting to invest in your business, investing not just private equity, but also themselves – in your business.

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Investor Education for Global Private Investment Funds in Film and Media Finance, Private Equity, Hedge Funds, Section 181 Investors

Mon, 28 Feb 2011 18:38:17 +0000

Investor Education for Global Private Investment Funds in Film and Media Finance, Private Equity, Hedge Funds, Section 181 Investors

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Home Page > Business > Public Company > Investor Education for Global Private Investment Funds in Film and Media Finance, Private Equity, Hedge Funds, Section 181 Investors

Investor Education for Global Private Investment Funds in Film and Media Finance, Private Equity, Hedge Funds, Section 181 Investors

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Posted: Mar 19, 2008 |Comments: 0
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Alright, so you woke up one day, checked your Swiss Bank Account, called your family office planner, had breakfast with your private client service wealth manager, got your tax accountant on the phone, and between three of you, you decided to invest your proceeds from your latest company’s Merger or Acquisition not into some dubious hedge fund or start-up biotech venture, but into financing Hollywood films because you figure you need the State tax Credits, the Federal tax write-offs, as well as a nice hedge of revenues from a few movies.

Now, this may not ring too well initially with your hedge fund manager neighbors in Connecticut or your oil and gas investor friends in Bahrain or Dubai, but aren’t these the same guys who are financing Hollywood blockbusters? And the only question for you, how do you get in the game without feeling like the Uncle of the film school student who wrote his nephew a $1,000,000 check for a film that starred his theater department classmates and ended up as a free download on youtube.com?

So after doing your share of homework, here’s what you discover may be the opportunity to spice up your wealthy but boring life:

*Sergey Brin And Larry Page Of Google, Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Todd Wagner and Marc Cuban (formerly of broadcast.com), Max Levchin and David Grodnick Of PAYPAL, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, former Chicago bulls co-owner Jim Stern, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg, Bob Yari; and, financiers Robert Sturm, Sheikh Waleed Al Ibrahim, Zeid Masri of SilverHaze Partners, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, and Philip Anschutz are just a handful of high net worth entrepreneurs who entered the motion picture finance and production business with successful results.

*There are various tradable state, federal, and international tax credit incentives that would offer a premium based on an equity position. Assuming there is a 10 million dollar budget film, where 50% of it is in equity, and 50% is through international distribution guarantees prior to release. Now assume there is a 20-25% tax credit on the entire amount of $10 million dollars, which will immediately translate into $2-2.5 million tax credit to an investor.

*Numerous hedge funds such as Reed, Conner & Birdwell (DISNEY), Legendary Fund (Warner Brothers), Melrose Fund (Paramount Pictures), Ingenious Media’s 700 Million dollar Float on London’s AIM, Benjamin Waisbren Investments, and a host of other funds and fund managers are entering the film finance arena.

*The explosion of international DVD, pay-per-view, home video, cable, megaplex theaters, the future of multi-lingual Internet video on demand downloads, and cross-market digital distribution including low-cost theatrical digital projection, the movie industry is accelerating at an unprecedented growth rate.

*The American Jobs Creation Act of 2004, which amends the Internal Revenue Code of 1986, was signed into law . The Act creates three tax incentives expressly applicable to motion pictures, one of which – § 181 of the Internal Revenue Code – is especially significant to independent film producers and their passive investors on qualifying films with budgets under $20 million dollars.

*The filmed and other entertainment sectors are constantly outperforming and beating analyst expectations with regards to growth, and are the only industries resistant to untimely global events and adverse economic conditions.

*Movie Investor returns may be more favorable and more liquid than holding direct equity positions in most public entertainment and other public companies, real estate investments, and other alternative investments.

*There is a huge demand, audience, and growing distribution structure for specialty independent, ,crime, horror, and other low budget films as exemplified by the success of such films as “Brokeback Mountain”, “Sideways”, “Capote”, “Garden State”, “Napolean Dynamite”, “Y Tu Mama Tambien”, “My Big Fat Greek Wedding”, “Memento”, “Crash” , “Saw 1 &2”, Friday The 13th”, “Halloween”, “Texas Chain Saw Massacre”, “Hostel” and “WOLF CREEK”, which was made for $800,000, bought for nearly 4 million dollars prior to its release by Dimension, as well as “Hustle and Flow” which was made for $2 million dollars and bought for $16 million by Paramount Pictures.

*Apart from large blockbusters such as “King Kong”, “Harry Potter”, and other large scale studio films, the majority of studio-produced films have been under performing at the box office. The films that have been successful for studios were all externally financed and or co-financed with studios, sold for 2-3 x their costs, and a majority of them retained foreign sales rights to maximize revenues.

So after looking at all the great benefits, how do you actually go about finding a deal or movie project where you are certain that half your money isn’t going to be used by a Hollywood producer as a down payment on a new mansion in Pacific Palisades?

The key that separates the successful film financiers vs. the newbie Oil magnates who come to Los Angeles with a pocketful of money and end up leaving with half a pocketful of money is called several things: structured finance, leverage, risk minimization, multiple exit strategies, tax credits, and the ethical consciousness of the filmmaker/producer.

What does that translate to you in a real world scenario. Lets say you want to finance 100% of a $1.5 million dollar low budget genre film whose worst case scenario is a DVD release and profits from international sales and perhaps some other equity sweeteners in the conversion of the securities that you subscribe for as part of the deal.

Well, if you write a check for $1.5 million, and the film is shot in a state that has 30% in tax credits, you get back $450,000 in tax credits + under Section 181, you are able to write off that amount under Federal. So you are already making a nice return before the profits kick in. Then you figure you sell the film to 50 countries, and if you are really lucky, you sell the film for 3-4 times it cost to a studio at a swanky festival like Sundance, Toronto, Cannes, etc. Do this over 5-10 films and you can make a very profitable name for yourself among the Hollywood elite.

But lets really take this a step further and see how the bigger boys leverage film investing because they can get a bigger star which can translate in larger overseas sales.

Lets say a filmmaker/producer has a $10 million film and you want in on the action. You would park $5 million in equity, receive an 20-30% tax credit on $10 million which will be $2-$3 million, the producer will get the biggest star he can, get a studio to kick in the other $5 million dollars, you wont worry about ever seeing a penny from the theatrical release because you know your DVD profits and international sales will cover your equity position. Make sense?

Now leverage this with different budgets, genres, stars, distribution, places where you can get high tax credits (Ie Puerto Rico is 40%), other exit strategies where you can find your shares on the London AIM, and you are on your new career path as a sophisticated and educated film financier. Off course, if you want to go even further and guarantee 100% of your capital, there are tricks to that as well.

If you have any further questions on your quest to a movie premiere on the French Riviera at the Cannes Film Festival, and its a burning a hole inside your heart and soul, contact yours truly at filmhedge@aol.com or yuri@noci.com

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Peter Ricchiuti – Investment & Finance Expert

Sun, 07 Nov 2010 18:38:12 +0000

Peter Ricchiuti is the finance professor you wish you had back in college! He teaches finance at Tulane University’s Freeman School of Business and his insight and humor have twice made him the School’s top professor. Peter founded and leads the Burkenroad Reports investment research program, in which he leads a team of more than 180 of the University’s business students in search of the investment “skinny” on undervalued and overlooked stocks in six southern states. www.speakers.ca This video is brought to you by Speaker’s Spotlight – www.speakers.ca – North America’s leading speakers’ bureau. Book Peter Ricchiuti as a keynote speaker for your next event by contacting info@speakers.ca.

Private Investors And Equity Finance

Tue, 27 Jul 2010 18:44:38 +0000

Private investors provide equity finance for business opportunity. They invest money into new and up-and-coming businesses; they have no preference in the industry sector that they invest in as they have a wide range of interests.

Private investors bring money to a business that is needed to move the business forward. As well as bringing in the required funding to get a business off the ground, a private investor will also provide your business with the skills and contacts that are needed to help your business progress.

2008 has, so far, not been extremely rewarding for private investors, which is why it is so important that you explore investments which are well positioned for a longer term favourable theme rather than those dependent on a highly unpredictable economic cycle.

With private investors some investors will invest passively, which means that after providing a company with the finance needed they will play a limited role within the company. In cases such as these the investors are usually professionals in medicine, law, real estate etc. Other investors however will want to be increasingly involved and will use their network and experience to drive your business. They will also want some type of control with business decisions.

When it comes to getting the help of an investor it is important to know that private investors have more confidence investing with people that they know so the fewer degrees of separation equals a greater chance of a deal being done. Before any deal is made it is important that you decide on the amount of capital needed as investors won’t be interested in guess work; they will want specific numbers.

The most common type of private investors are angel investors, otherwise known as business angels. These angel investors hold extremely high risk and require a very high return on investment. Due to the fact that a large percentage of angel investments are lost completely when early stage companies fail, private investors seek investments that have the potential to return at least 10 or more times their original investment within 5 years, through a defined exit strategy, such as plans for an initial public offering or an acquisition.

There are many different ways to describe private investors; they have many names attached to them such as venture capitalists and business angels. These private investors are often retired entrepreneurs or executives. They can provide your business with valuable management advice and important contacts. Private investors are wealthy individuals who invest in high growth business.

Private investors are growing to be one of the most popular ways of gaining business finance. This is making equity finance overtake debt funding as the best way of funding your business. Private investors are really worth looking into if you are hoping to start your own business. You do however have to ensure that you have your business plan wrote to the highest standard if you want to attract the help of private investor as they will use your business plan to see if your business has a high chance of being successful.

Helen is the web master of ARCH Entrepreneurs, specialists in all aspects of Private Investors.

Real estate corporate finance expert joins Deloitte

Mon, 26 Jul 2010 18:49:52 +0000

Real estate corporate finance expert joins Deloitte
Real estate corporate finance expert, Nick Sanderson, joins Deloitte to head up the firm’s real estate corporate finance advisory business.

Finance and Banking

Wed, 07 Jul 2010 18:41:27 +0000

Finance and Banking
The Securities and Futures Commission (SFC) released on 25 June 2010 its consultation conclusions to extend the Codes on Takeover and Mergers and Share Repurchases (Takeover Codes) to SFC authorised real estate investment trusts (REITs) and to apply the market misconduct and disclosure of interest provisions under the Securities and Futures Ordinance (“SFO”) to listed collective investment …

Commercial Finance- Angel Money

Mon, 21 Jun 2010 18:54:51 +0000

The Merriam-Webster Online Dictionary defines angel as:

“1 a: a spiritual being superior to humans in power and intelligence; especially: one in the lowest rank in the celestial hierarchy;

2. an attendant spirit or guardian

3. a usually white-robed spirit or guardian of human form in fine art

4. messenger harbinger i.e. angel of death;

5. a person like an angel ( as in looks or behavior);

6. Christian Science- inspiration from God;

7. one (as a backer of a theatrical venture) who aids or supports with money or influence”

Who are angel investors? They may be an individual, or a group of individuals with money to invest in start-up businesses in exchange for various forms of ownership and control of the entity. Many angel investors organized into organizations or groups that pool their money to make larger investments and spread the risks of failure among many investors.

Many start-up businesses borrow seed funding from family, friends and acquaintances to provide capital to pay the initial expenses of starting a new company. It is difficult to raise significant amounts of money this way. Most venture capital firms will not consider investments less than one or two million dollars. Angel investors fill the gap by providing risk capital for potentially high growth companies, usually in amounts of $100,000 to $1,000,000. These investments are extremely high risk since approximately 8 out of every ten such investments result in failure and loss of investments. Thus angel investors look for opportunities that have potential to return over 10 to 20 times the original investment within a relatively short period of time.

Most startup businesses that compete for angel investor money are in a pre-revenue stage. As such, they are not eligible for bank financing, purchase order financing or accounts receivable financing for exponential growth.

How do you obtain money from Angel investors? The process is difficult. A due diligence package should be prepared for the angel’s which will include all details of the start-up company’s organization; who the executives and board of directors are; their resumes, experience and academic backgrounds; the business plan for growth; specific details on the product or services including projections regarding economies of scale; and an analysis of the potential marketplace for the product or service; an exit strategy; and an analysis of competition in the marketplace regarding similar products or services. It is necessary to create a power point presentation for angel investors with an enthusiastic principal of the start-up company extolling the virtues of their idea to convince angel investors this is “the next big one”. The presentation can occur in a conference room one on one with the angel, or at a dog and pony show where five to ten prospects make their pitches to a panel of angels.

What are your chances of obtaining angel investor money? It is about the same probability of being guaranteed a place in heaven; in brief, it is not good. Less than one out of ten proposals for angel investor financing receive funding. Some angel investor groups fund about one start-up out of every 1000 submissions. Many deals are rejected because there is insufficient growth potential, or management lacks talent or skills to succeed, or the product or service simply does not have the requisite potential for spectacular results. On the other hand, some deals are funded because the angel has a special interest in a particular area that the product addresses, such as cleantech products.

How do you find angel investors? One good national listing is http://www.inc.com/magazine/20050701/angels-in-america.htm. You can also look on the internet for angel investors that are local in your area. This is important because most angel investors like to invest within 50 miles where they are located because it is easier to keep on top of local investments.

Are angel investors really angels? Are they any different than venture capitalists, just smaller in size? These are very difficult questions. Some angel investors nurture their offspring more than others. Consider the statement of Josh Kopelman, a venture capitalist with a new company called “FirstRound”. FirstRound funds entrepreneurs with big ideas in the $250,000 to $750,000 range. Mr. Kopelman “ sticks with them long enough to determine which business plans will work and which should be taken out back and shot” according to the January 21, 2008 issue of Fortune Magazine.

“Angel” is the name of a song written and recorded by Jimi Hendrix. It was released on the album, The Cry of Love, in 1971. Here are the lyrics:

“Angel came down

From heaven yesterday,

Stayed with me just long enough

To rescue me….

And she told me a story yesterday;

About the sweet love

Between the moon and the deep blue sea.

Then she spread her wings high over me.

She said, I’ll come back again to see you tomorrow….

And I said fly on, my sweet angel.

Fly on through the sky.

Fly on, my sweet angel.

Tomorrow I’m gonna be by your side….

Sure enough,

This woman came home to me.

Silver wings silhouetted against a child’s sunrise….

And my angel,

She said unto me,

today is the day for you to rise.

Take my hand, you’re gonna be my mind,

And she took me high over yonder…..

And I said fly on, my sweet angel.

Fly on through the sky.

Fly on, my sweet angel.

Tomorrow I’m gonna be by your side…..”

Jimi Hendrix never made much money during his lifetime. This album was released after his death. He truly was an angel as a musician and his estate has earned millions of dollars from the sales of his music over the past forty years. His music and guitar playing technique has inspired millions of people. He literally changed the way the guitar was perceived and played as an instrument. From a musical point of view, during his life he was “the next big one”.

The bottom line: Are you the next “Jimi Hendrix” of the business world? If so, angel investors may be the answer to your prayers.

www.greggfinancialservices.com

Mr. Elberg is a licensed attorney and licensed real estate broker. Gregg Financial Services is a full service brokerage for commercial finance companies and banks that fund B2B businesses. Mr. Elberg arranges funding from $25,000 to $50 million per month at competitive pricing, and works to reduce your financing costs as your company grows. For more information about GFS, please visit our website: http://www.greggfinancialservices.com