Virtually every industry has their own vernacular, although some words and phrases no doubt cut across sectors. The language of finance can be particularly nuanced though because different firms and investors often have such distinct objectives. There has been some crossover lately between areas like venture capital and private equity, so folks working in one or the other will likely encounter some similar concepts and terms in both. Of course, the economic climate, the stock market, and other investor trends influence which ideas are thrown about more than others at any given time. Granted, many of the words are well known regardless of the frequency of their usage during a particular period of time, but they sometimes take on additional meanings. Here are 5 of the top buzzwords currently circulating the finance world:
Information is power and in the last several years many companies have steadily increased the amount of data and documentation they gather and retain. Fortunately, they’re finding that document storage, both online and offline, is actually more affordable than they realized. Once you know the actual costs and issues that can arise with data storage, you’ll be able to find strategies to spend less money and still get much needed document security and organization.
The destruction of paper files is more costly than some companies realize. According to Inside Counsel, “it can take $143.49 to destroy a box of records” – and it is even more when you consider the labor and time costs of organization, shredding, disposal, etc. But regardless of the hidden costs of establishing an online document storage solution, it is still a necessary move for most companies. In a fast-moving digital world, customers, clients and organizations have very high expectations about how quickly and efficiently data can be accessed. There’s simply too much data to reliably find important information in paper records.
So, while the costs can add up, finding a secure document storage provider that can help offset some of these fees will save your company time and resources while organizing and protecting your documents.
To get a better perspective, let’s compare some of the cost-saving advantages of both online and offline document storage solutions.
The invention of web-based corporate tools and services have alleviated a plethora of communication and organizational needs faced by businesses. With this mass adoption, however, comes a potential danger that proprietary information might be accessed by unauthorized users.
Hackers are utilizing developed techniques, typically brute-force attacks, that allow them to search for passwords based on trends and frequent user habits.
After parties decide they wish to embark on a merger or an acquisition (M&A), a lot can change at any moment that could alter the terms of the deal or kill it altogether. One of the buyer's understandable concerns is that the company it inherits won't be on the same financial footing it was when the decision to purchase occurred. Given how long it can take to close the deal, there could be a change in the acquired company's assets or liabilities that could significantly affect the business's value and future. As a result, the dealmakers usually rely on the inclusion of a working capital hurdle. This is a predetermined sum with respect to the required balance of assets and liabilities of the acquired company that the buyer expects. The amount usually factors into the purchase price so that if the company mishandles something during the transaction, the final price can be adjusted as needed. Here is what sellers need to do when it comes to handling that working capital hurdle:
Deciding to take your company public is a huge decision and cannot be taken lightly or executed impulsively. In general, a company will have been around for awhile and gone through a lot of ups and downs before it reaches the point that it makes sense to go public. There are clearly a lot of different factors at play when considering whether to make this transition, and it is important to remember that what is good for one company may not work for another. With that in mind, here are 6 questions to ask before taking your company public: