New Business Developement

Accounting valuation

Market multiples

Discounted Cash Flow

Shareholders equity / number of shares

(market cap of the company - the depts) / number of shares

it is all before interest

- If the entire neighborhood is over- or undervalued
-the company has few or no comparable (e.g unique product or strategy or whatever) assets
- if the company has superior prospects, using an industry multiple will produce a too low value
- Advisors may pick a comparable companie to produce a desired result
- Advisors adjust the multiple after the fact baed on their “experience and judgement”

The market value of an asset, investment, business, or company is the sum of all future cash flows it is expected to generate over its lifetime (adjusting for the timing and risk of the cash flow)

Corporate venturing describes the participation of mature, established (large) companies in small, young pioneering companies. The aim of such participations is primarily to secure innovation and strategic future options for the established company and to secure resources (finance, personnel, know-how) for the pioneering company

• Minority vs. Majority
• Direct investment vs. indirect Investment

Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups

Post-merger integration (“Win yourself to death”)

• Speed
• Communication
• Organization (Integration Board)

TAM = Total Addressable Market (total market that is theoreticaly possible to reach
SAM = Serviceable Addressable Market (Total Market that is within the geographical reach)
SOM = Serviceable Obtainable Market ( The porture of SAM that on can capture)

• Relationship
• Perceptions
• Interests
• Options
• Criteria of Legitimaccy
• BATNA

Asset Deal

• Purchase of a company’s assets
• Buyer becomes owner of the purchased assets/parts of the company, but not the company

Share Deal

• Purchase of a company itself
• Buyer becomes owner and shareholder of the company with all its assets and liabilities

Signing: Formality of getting all the paperwork done

Closing: when the escrow company is transferring the ownership of the company

New Business Development is:

• The capability to create and implement new business
• Executed by existing organizations
• With the goal to increase and/or secure performance

   

According to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one"

this means the deliberate omission of certain technological development stages. This trend can be seen in Africa, where there is still no continuous power grid, but large parts of the population already have a smart phone.

Disruptive technologies are innovations that replace the winning streak of an existing technology, product or service, or drive it out of the market entirely, rendering obsolete the investments of previously dominant market players. (e.g first car – horse)

Incubate ideas in hope of building out a business model and company, independent, sometimes connected to venture capital firms or funds, stimulating innovation, 6-36 months.

Idea Generation

Seed Stage

half growth stage

accelerate growth of an existing company, 3-12 months

Growth Stage

Acceleration Stage

A macrotrend is a pervasive and persistent shift in the direction of some phenomenon on a global level. Examples of current macro trends include urbanization, automation and changing demographics.

Absorptive capacity is the ability to recognize the value of new information, assimilate it, and apply it to commercial ends.

1. Ability to recognizing its value and acquire external knowledge (often based; not invented here)

2. Ability to assimilate new knowledge to existing schemes vs. the ability to transform knowledge structures when knowledge cannot be assimilated

3. Exploit new external knowledge

a form of organization that allows a company to be both exploratory and exploitative.

Keiretsu (jap. 系列, literally: 'row', 'line') refers to Japanese associations of companies, also called "economic composite groups". The companies are legally independent but economically interdependent.

• Diversification
• Horizontal Integration
• Vertical Integration
• Geographic Expansion

A merger is the combination of tow firms, which subsequently form a new legal entity under the banner of one corporate name.

An Acquisition is when one company purchases most or all another company’s shares to gain control of that company.