diff --git a/mba-main.org b/mba-main.org index dd497de..788bcd5 100755 --- a/mba-main.org +++ b/mba-main.org @@ -67,7 +67,17 @@ - [[./mba/ch59.org][Chapter 59. Read Financials like a book & find patterns in data]] - [[./mba/ch60.org][Chapter 60. How to Value Public Firms the Easy Way]] -** seciton 12 - Initial Public Offering (IPO) +** section 12 - Initial Public Offering (IPO) - [[./mba/ch64.org][Chapter 64. How an IPO works]] - [[./mba/ch65.org][Chapter 65. How DCF (Discount Cash Flow) analysis works]] - [[./mba/ch66.org][Chapter 66. Valuing a Company vs Competition]] + +** section 13 - management analytical frameworks +- [[./mba/ch70.org][Chapter 70. What is management consulting + frameworks they use]] + +** section 14 - alternatives and turnarounds +- [[./mba/ch75.org][Chapter 75. Financinc Alternatives + Why to avoid Debt]] +- [[./mba/ch76.org][Chapter 76. Harvesting an Investment, Leveraged Buyouts, Troubled Ventures and Turnarounds]] + +** section 15 - leftover content / goal setting workshop +- [[./mba/ch81.org][Chapter 81. Most important ivestment, Great marketing is crucial]] diff --git a/mba/bcg-matrix.png b/mba/bcg-matrix.png new file mode 100644 index 0000000..bba88f2 Binary files /dev/null and b/mba/bcg-matrix.png differ diff --git a/mba/ch70.org b/mba/ch70.org index 9fce3c3..aa7d33c 100644 --- a/mba/ch70.org +++ b/mba/ch70.org @@ -5,5 +5,109 @@ * Links - [[./../mba-main.org][TOC | Business]] - [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4317556#overview][S13:L70 course video]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4317496#overview][S13:L71 course video]] * notes + +** Management consuluting +- assume we need help + +*** what consultants do +- analyze problems +- financial statement preparation +- enviornmental preparation + +*** it consulting +- merger +- setting up offshore bank +- online banking access + +*** hr staffing +- outsource hiring + +** pro/con working in consulting +*** positives +- money +- interesting +- travel + +*** negatives +- brutal hours +- some clients hate you +- long path to partner + +** resume tips +- list of html links +- networking is more important + +** analysis frameworks +*** bcg matrix + +#+OPTIONS: toc:nil +#+PROPERTY: header-args:plantuml :cache yes :results file :exports both :file bcg-matrix.png + +**** BCG Matrix Overview +This chart maps *market share* (horizontal axis) against *market growth* (vertical axis). + +- X-axis: Low → High *Market Share* +- Y-axis: Low → High *Market Growth* + +**** Text Diagram (quick view) +#+BEGIN_EXAMPLE + ↑ High Market Growth + | + | ┌────────────────────────────┬────────────────────────────┐ + | │ Question Marks │ Stars │ + | │ (Low Share, High Growth) │ (High Share, High Growth) │ + | ├────────────────────────────┼────────────────────────────┤ + | │ Dogs │ Cash Cows │ + | │ (Low Share, Low Growth) │ (High Share, Low Growth) │ + └────┴────────────────────────────┴────────────────────────────┘ + Low Market Share High → +#+END_EXAMPLE + + +*** S.W.O.T analysis +#+BEGIN_EXAMPLE + + ┌─────────────────┬─────────────┐ + │ strengths │ weaknesses │ + ├─────────────────┼─────────────┤ + │ opportunities │ threats │ + ┴─────────────────┴─────────────┘ +#+END_EXAMPLE + +*** product life cycle +1. y-axis is sales profit +2. x-axis is time + +**** along the x-axis +1. development +2. intro +3. growth +4. maturity +5. decline + +*** porter 5 forces model +analyze based on 5 different forces + +1. competition +2. substitutes +3. new entrants +4. buyer power +5. supplier power + +*** barriers to entry +- patents +- market +- produce stuff at scale + +*** risks +- look at sec.gov to find + - risks + - weakneseses +- also you can call the company's competitor + +** quantitative stuff +- trends in data +- every chart tells a story diff --git a/mba/ch75.org b/mba/ch75.org new file mode 100644 index 0000000..c8b1e32 --- /dev/null +++ b/mba/ch75.org @@ -0,0 +1,95 @@ +#+title: Section 13 | Lesson 75 - financing alternatives +#+HTML_HEAD: +#+OPTIONS: H:6 + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4284470#overview][S14:L75 course video]] + +* notes + +the company is mature +but it is not growing + +** financing alternatives +- equity investors are better for startups +- if you are in debt and miss a payment, it is death +- if you must take debt, do it as an LLC so they can't come after you + +*** additional sources +- raising money is tough +- do not pay upfront fees to consultants to raise money + - they are fraudulant +- you pay people AFTER THEY EARN THE CASH + +** commercial & venture bank lending +- commerical loans are possible with a few years of operating history +- they want to see cash flow projections based on a few years of history + +*** don't really care about assets +- unless you are extremely liquid + +** VC vs Debt firms +- VC love risk +- Debt firms hate risk + - interest on debt + - warrants on stock options + +*** equity +- primary for venture capital +- secondary for debt firms + +*** timing +- beginning venture capital +- ending debt firm + +** reasons not to do debt financing +- minimum 2+ years financials +- few tangible assets +- low revenue (tech) + - tech firms always have this problem +- 1-2 employees are too valuable + +** credit card debt +- 50% of startups use this +- if your CR rating sucks you can't raise debt + +** foreign investor funding +- US gov lets you buy lawful permanent resident status if you invest $1mn in a startup and create or preserve 10+ jobs +- minimum drops to 500k if in a rural or high unemployment region + +** government loans +- native americans +- hawaiians +- women +- veterans + +** vendor financing +- "2/10 net 30" + +*** how it works +- you buy goods on credit from a vendor +- if you pay back before 10 days, you get discounted 2% +- if you pay back between 10-30 days you pay the full amount + +- so always pay before the 10 days, because then you avoid an effective compound rate of over 40% + +*** example +- you have a buyer lined up for 1000$ worth of goods, assume he pays you upfront +- vender hands you goods, you pay vender $980 immediately due to 2% discount under 10 days +- hand over goods to buyer +- pocket 20$ + +** vendor leasing +- you lease equipment instead of a money loan +- part of payment is in warrants + +** other financing +- morgage if company owns the business +- direct public offerings + - you can get a loan of up to $1mn through a syndicate of many investors + +** bootstrapping +- pay for it yourself +- better to use Other People's Money +- set up LLC so protect family diff --git a/mba/ch76.org b/mba/ch76.org new file mode 100644 index 0000000..6d0d6b9 --- /dev/null +++ b/mba/ch76.org @@ -0,0 +1,155 @@ +#+title: Section 13 | Lesson 76 - financing alternatives +#+HTML_HEAD: +#+OPTIONS: H:6 + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4301162#overview][S14:L76 course video]] + +* notes +** Harvesting an investment +- asset can be transferred to investors +- company can be sold and cash distributed to investors +- company goes public and shares are distributed 6 months post IPO lockup + +** Planning an exit strategy +- need to explain liquidity targets to investors when you are raising capital + - make sure you are both thinking the same way + - have a lawyer prepare the documents + +** Buyouts +- "leveraged buyout" LBO +- financed using debt +- must have great cash flows to secure loans + +*** firms +- many public companies partner with private equity firms and go private +- goal is to go public again at some point + +**** example firms +- KKR +- TPG + +*** management buyout (MBO) +- when management buys the company + - loans + - investors + - their own money + +- gains + - independence + - control + +*** Employee Stock Ownership Plan (ESOP) +- employees buy the company +- all employees own it not just management + +** Initial Public Offering (IPO) +*** what is an initial public offering +- private company sells shares to the public through a stock exchange +- this allows + - company to raise capital for growth + - early investors and employees to convert their holdings to cash + +*** shares +**** types of shares +***** primary +- newly issued shares created by the company for the IPO +- when sold to outsider investors the money goes to the company's treasury +- used to fund expansion, pay debt, invest in new projects + +***** secondary +- already existing shares held by people "shareholders" + - it's the shareholders that make money when selling their shares + - venture capital firms + - founders or employees that want to cash out + +**** in practice +- most IPOS are a mix + - primary raises growth capital + - secondary is the payout for whoever bought in early + +**** dilution +- when primary shares are made and sold, existing shares are worth less +- company gets money to raise to invest in projects that can increase it's overall value in cluding the diluted shares + +*** structure, underwriting and listing requirements +- underwriting spread is fee the investment bank gets (usually up to 7%) + +**** listing requirements for NASDAQ +- share price >= $4, at least 1M publicly held shares +- several years of operating history and financials +- must have a Board of Directors (BOD) with independent members + - oversee management + - ensure regularatory compliance + - protect shareholders + - maintain audient, compensation and nominating committees + +** Troubled Ventures and Turnarounds +*** basics +- turnarounds don't work in tech +- very rare exceptions + - steve jobs at apple + - IBM +- this is due to 'secular decline' + - A secular decline is a persistent, structural decrease in growth, productivity, or demand that continues for many years regardless of normal economic ups and downs. + +*** corporate raiders +- dont let sentiment cloud your judgement +- it's a zombie. shoot it and move on. + - liquidate + - sell it + +*** ways to die +- financial distress :: when cash on hand is insufficient to pay for current liabilities +- load default :: one missed payment and it is over +- acceleration provision :: when a firm defaults on just one payment then all future payments are due immediately +- cross default provision :: one late payment on one loan causes all loans to go into default +- foreclosure :: the legal process where lenders collect and take stuff from you +- insolvent :: negative book equity + +*** reqlities +- 25% of companies go belly up within 2 years of being founded +- more than 50% of companies shut down within 4 years of being founded + +*** bankruptcy law +- a legal code that has many chapters that protect you + +**** chapter types +***** types +- chapter 7 :: how people / firms liquidate stuff +- chapter 9 :: how cities deal w/ bankruptcy +- chapter 11 :: how firms deal w/ bankruptcy +- chapter 12 :: how farms deal w/ bankruptcy + +***** general rules +- chapters 1, 3, 5 :: general bankruptcy rules +- chapter 15 :: trustees that help banks +- chapter 13 :: restructuring personal debt + +***** most important +- chapter 7 - liquidating +- chapter 11 - restructuring + +**** chapter 7 liquidation +- after a person / company files for bankruptcy then a court supervises the liquidation process + +**** capter 11 bankruptcy filing +- temporarily protects a distressed firm so they can restructure or pay off debt +***** types of restructuring +- operations restructuring :: incraese revenue or cut expenses +- asset restructuring :: selling assets to improve ratios + - day sales outstanding + - inventory conversion period + +***** this can save a company +- 65% of companies reorganize +- 28% liquidate +- 7% merge with another firm + +***** steps +1. file for chapter 11 with one of 300 bankruptcy courts +2. a bankruptcy judge accepts or doesn't accept petition +3. if no fraud a company has 120 days to make a plan +4. 60 days is then given to creditors to accept the plan +5. investors then vote diff --git a/mba/ch81.org b/mba/ch81.org new file mode 100644 index 0000000..48aa502 --- /dev/null +++ b/mba/ch81.org @@ -0,0 +1,84 @@ +#+title: Section 15 | Lesson 81 - Important Investment, Great Marketing +#+HTML_HEAD: +#+OPTIONS: H:6 + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4307066#overview][S15:L81 course video]] + +* notes + +** term sheet +- non binding +- basic terms +- you can do it for free + +** chat explanation + +*** Purpose +- Non-binding summary of key terms before drafting full legal contracts. +- Serves as a blueprint for the final agreement. + +*** Common Use Cases +- Startup investments (VC/angel funding) +- Mergers and acquisitions (M&A) +- Partnerships and joint ventures +- Large financing deals +- Real estate or major service agreements + +*** Key Sections in a Term Sheet +**** Valuation & Investment +- Company valuation +- Amount to be invested +- Price per share / equity percentage + +**** Rights & Governance +- Board seats +- Voting rights +- Investor protections or veto rights + +**** Founder & Team Provisions +- Vesting schedule +- Roles and responsibilities +- Restrictions (e.g., non-compete, full-time requirement) + +**** Financial Terms +- Liquidation preference +- Dividends (if any) +- Anti-dilution protections + +**** Exit & Transfer Terms +- Rules for selling the company +- Buyout scenarios +- Rights of first refusal / co-sale rights + +**** Legal & Administrative Terms +- Closing conditions +- Due diligence requirements +- Timelines for completing the deal + +*** Binding vs Non-Binding +- Most of the document is *non-binding* +- Binding parts typically include: + - Confidentiality + - Exclusivity / no-shop clause + - Dispute resolution + +*** Why a Term Sheet Matters +- Aligns expectations early +- Reduces legal costs +- Prevents misunderstandings +- Speeds up negotiation and contract drafting + + +** minimal structure for a term sheet +1. Parties +2. Purpose of agreement +3. Investment amount / contribution +4. Ownership or percentage rights +5. Governance (decision-making, voting) +6. Financial terms (profit split, dividends) +7. Restrictions (non-compete, full time, IP ownership) +8. Exit terms (what happens if someone leaves) +9. Timeline / closing conditions +10. Binding clauses (confidentiality, exclusivity) diff --git a/mba/chart.png b/mba/chart.png new file mode 100644 index 0000000..4178b33 Binary files /dev/null and b/mba/chart.png differ diff --git a/mba/product-lifecycle.png b/mba/product-lifecycle.png new file mode 100644 index 0000000..400eb72 Binary files /dev/null and b/mba/product-lifecycle.png differ