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| PRIVATE
EQUITY |
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| Private
equity investing may broadly be defined as "investing
in securities through a negotiated process".
The majority of private equity investments are in
unquoted companies. Private equity investment is typically
a transformational, value-added, active investment
strategy. It calls for a specialized skill set which
is a key due diligence area for investors' assessment
of a manager. The processes of buyout and venture
investing call for different application of these
skills as they focus on different stages of the life
cycle of a company. |
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Private
equity investing is often divided into the categories
described below. Each has its own subcategories and
dynamics and whilst this is simplistic, it provides
a useful basis for portfolio construction. In this
article, private equity is the universe of all venture
and buyout investing, whether such investments are
made through funds, funds of funds or secondary |
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| CONCEPT
OF VENTURE |
CAPITAL |
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| What
is Venture Capital? |
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The
term 'Venture Capital' comprises of two words viz.,
'Venture' and 'Capital'. The dictionary meaning of
'Venture' is undertaking which involves risk, the
outcome of which is uncertain and the meaning of word
'Capital' is money invested in business. Thus, the
meaning of 'venture capital' is, investment in business
undertaking involving risk. As a matter of fact, every
business enterprise operates with normal risk. But,
business enterprises involving more than normal risks
are categorized as 'ventures' in financial industry
connotation. The investing firms are referred to as
'venture capital firms' and ventures are referred
to as 'venture capital undertakings' |
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MERGERS
AND ACQUISITIONS |
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With
the global changing scenario and development of Indian
economy achieving highest growth rate, Indian companies
shopping abroad executing Mergers and Acquisitions
of foreign companies, entering Joint Ventures, Out-sourcing
production activities etc. |
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We
believe that there are three factors that must be
considered when reviewing a prospective merger or
acquisition – |
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| The
financial viability of the new unit; |
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| The
positive or negative effects on the marketing efforts
of this entity: & |
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| Its
potential for increased operational success and efficiency. |
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| Each
element is analyzed and reviewed with regard to its
relation to others. |
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