(Adjusted Capital Asset Pricing Model), 563 Acceptable Risk, 96

Index

Absorption, 40 Assets, 554–555 ACAPM (adjusted capital asset pricing model), fixed, 577–578 563 intangible, 556–557 Acceptable risk, 96 liquidation value of, 64 Accountants, 312–315 replacement, 577 Accounting earnings, 537–538 specialized, 236 Accounting principles, 587–590 Assignment for benefit of creditors (ABC), 339– Accounts receivable: 343, 348 collection of past due, 81 Attorneys. See Counsel discounting, 74–75 Audits, 221 Accounts receivable (A/R) financing, 101–102, Avanir Pharmaceuticals, 365–366 332–335, 356, 357 Accredited investor, 84 Balance sheet, 53, 221, 553–561 Accrual accounting system, 538 analysis of, 17 Accrual revenues, 538 liquidation, 64 Acquisition, reverse, 194–195 Band of Angels, 359 Acquisition company, 194 Bank debt, 162 Acquisitions, 37–41, 252, 542 Bankers, 306–312 case study, 344–347, 378–379, 385–387, Bankruptcy, 258, 336, 341, 348, 386 389–392 Banks. See Commercial banks; Merchant banks reasons for, 37 Barnette, Meg, 374 Adjusted book value, 28 Bartering, 75 Adjusted capital asset pricing model (ACAPM), Basic 7(a) loans, 176–181 563 BATNA (best alternative to a negotiated Advance rates, 105, 107, 109 acquisition), 325 Affirmative covenants, 223, 224, 278, 290 Becker, Michael, 382 Agency costs, 47 Beneficial owners, 19 AIM Market, 195–196 Benefits, employee, 559–560 Alignment, 7–36 Biotechnology industry, 123, 196, 200–201 Allocated costs, 539 Blank check preferred stock, 283 Amortization, 537 Board of directors, 145–146, 276, 303–306 Anderson, Jim, 198–199 managing, 147–151 Angel investments, 83–95 Book, the, 321 case study, 359–361 Bootstrapping, 72–82, 160 groups of, 87–89 Borrowers: latest developments in, 93 financial statements, 220–222 source directory by minimum funding, 400 operations, 222–223 vs. venture capital, 85–86 organizational structure, 219–220 Antidilution provisions, 271–273 Borrowing base, 214 Antifraud provisions, 291 Borrowing base certificate, 244 Applied Intelligence Systems, Inc., 198–199 Bortech, Inc., 375–377 Arbitrage pricing model (APM), 533–534 Boutique investment banks, 306, 310–311 A/R indemnity insurance, 105 Bridge loans, 115, 135, 255–256 Asset-based financings, 244–246 Brookside Capital Partners, 377–378 Asset-based lenders (ABLs), 96, 100–114, 330, Budget bridge, 23 356 Built to Last (Collins), 8, 15 benefits of loans from, 101 Bulge bracket firms, 306 case study, 332–335, 336–339, 339–343, Business and Industry (B&I) Guaranteed Loan 344–347, 348–352, 352–355 Program, 191 documents for, 101 Business plan, 8–9, 22–25, 207, 261–263 market segmentation and pricing, 102 evaluation of, 91–92 other types of, 111–114 Business ValueXpress (BVX), 35 source directory by minimum funding, 401–403 Buttolph, David D., 378

Buy-and-build strategy, 393–395 and inventory financing, 110 Buyout funds, 157–164 liquidation of, 100 Collateral administration, 334 Call, Chuck, 359 Collateral assignment, 238 Capital: Collections, 81 cost of, 535, 545 Collins, James, 8, 15 least expensive, 50 Commercial banks, 95–100, 330 optimizing return on, 50 case study, 356–358 and quality of management, 54 source directory by minimum funding, 404 sources by company stage, 71 Commercial finance companies, 115–116 sources of, 69–201 source directory by minimum funding, 404–405 surplus, 274 Commitment, 207–208 uses of, 51, 52–53 Commitment letter, 208–210 Capital asset pricing model (CAPM), 29, 531–533, Common stock, 204, 259 563 Community Adjustment and Investment Program Capital efficiency, 152 (CAIP), 188 Capital expenditures, 537 Community development financial institutions Capital expense (capex) lines of credit, 111 (CDFIs), 174–175 Capitalization: case study, 370–374 alternatives, 45–46 Community development initiatives, 169–193 and leveraged buyouts, 161 Community Development Venture Capital Alliance, Capital leases, 117 370 Capital Pool Company (CPC), 195 Company registration rights, 288–289 Capital structure, 45–67 Company stages, 51 changes in, 545–546 and debt, 48 defined, 45 and equity, 48 drivers, 51, 54 funding sources, 71 factors shaping, 49–63 and valuation, 140 shareholders' influence on, 63 Compensation, deferred, 79–80 CAPLines loan program, 189–190 Compilation, 221 Carried interest, 164 Concept of no surprises, 326 Case studies, 329–395 Conflict, 14 Cash flow, 539–540 Consignment, 75 and A/R financing, 105 Construction loans, 246 and bootstrapping, 73 Consultants/advisers, 315–317 discounted, 29–30 Contracts, long-term, 553 excess, 226 Convergence, 587–590 forecasting, 49 Conversion rights, 286–287 operating cycle, 81, 567, 568–569 Convertible bonds, 536 planning, 23–25 Convertible debt, 255 speeding, 573–574 Convertible preferred stock, 255, 259–260, 267 in startups, 583–586 Core focus, 41 vs. accounting earnings, 537–538 Corporate finance: Cash flow-based financing, 246–248 fundamental propositions, 525 Cash flow collateralized debt obligation, 116 overview, 523–526 Cash revenues, 538 Corporate venture capital (CVC), 166–168 Cash sweep, 162 Cost/benefit analysis, 22 Certificate of incorporation, 283 Cost of capital, 545 Certified Development Company (CDC), 181–183 Cost of sales, 572 Chapter 11 bankruptcy, 348, 386 Cost reduction, 574 Clean technology industry, 124 Counsel, 301–303 Closing conditions, 283 Covenants, 290, 351 Co-investments, 164 Covenants, loan, 223–231 Collateral, 66, 96, 338–339 Cram-down financing, 269–270 case study, 336 Credit, 105

managing risk, 81 Depreciation, 537, 577 references, 73 Desired state analysis, 18–19 types of, 212–215 Direct marketers, 580–581 Credit agreement, 212 Disclosure document, 321 Credit insurance, 109 Discounted cash flow (DCF), 29–30, 34, 541 Credit rating, 217 Discounting, 34, 540 agencies, 258–259 accounts receivable, 74–75 Crestmark Bank, 332–335 Discount rate, 107, 540, 563–565 Cumulative dividends, 284 Discounts, 31–32 Current ratio, 228 Dissenters' rights, 291 Current state analysis, 16–18 Diversification, 530–531, 532, 533 Customers: Dividends, 284, 547–549 investments, 77–78 Down-round, 33, 135, 144 Drag-along right, 291 DataMax Corporation, 380 Drug Royalty, 365–366 Deal structure, 39–41 Due diligence, 278, 279, 283, 323–324 Death spiral, 273, 287 Dunn Paper, Inc., 382–384 Debt, 66 Dwyer Group, 388–392 advantages of issuing, 205 categories of instruments, 243 Early stage companies, 32–33 and company stage, 48 case study, 362–364 cost of, 535 and equity, 48 defined, 205 and mezzanine funding, 156 disadvantages of issuing, 205 valuation in, 92 distinction from equity, 205, 543–545 EBITDA (earnings before interest, taxes, and environmental dynamism, 55 depreciation, and amortization), 29, 229– financings, 203–300 230, 247, 248 funded, 56 Elasticity, price, 76–77 instruments, 206–212 Eldorado Stone, 379 long-term, 56 Eligibility, 244–245 negotiating terms of lenders, 98 Employees: relationship with innovation, 55 benefits, 559–560 secured, 206–207 deferred compensation, 79–80 subordinated, 153–154 stock options, 277 Debt claim, 543 Engelke, Jack, 344 Debt/equity ratio, 46–47, 54, 217, 229 Enterprise value, 143–144 by industry, 57–62 Entrepreneurs, 94–95 and leverage, 56 Environmental dynamism, 55 Debtor-in-possession financing, 111, 258 Equity, 48, 66 Debt ratio, 546 and company stage, 48 Debt-to-cash flow ratio, 217 cost of, 534–536 Debt with revenue sharing defined, 56, 204 case study, 375–377 distinction from debt, 205, 543–545 Decision-making, 524 financing, 203–300 asset management, 579 preferred, 163 objectives, 526–527 private, 119–122 rules for investments, 541–543 repurchases, 547 template, 14–26 vs mezzanine debt, 154 Default, 231–233 Equity, growth: Defieux, Rick, 370 case study, 367–369 Definitive agreements, 325 Equity claim, 543 Demand registration rights, 274–275, 288 Equity co-investments with senior debt, 115–116 Department of Agriculture, U.S., 191–193 Equity investments, 259–263 Department of Housing and Urban Development, documentation, 263–291 U.S. (HUD), 257–258 securing, 260–263

Events of default, 231–233 Forecasting, 220 Excess cash flow, 226 and bootstrapping, 73 Exclusivity period, 278 cash flow, 49 Executive summary, 320 company growth, 141 Exit strategies, 162, 260–261, 274, 391 updating, 27 case study, 378–379 Form S-3, 275 Expert support, 301–317 Foundation setting, 15 Export financing, 184–187, 357 Founder share vesting, 277–278 Export Working Capital Program (EWCP) loans, Franchise businesses, 388 184–187 Friends and family loans, 73 Extended terms, 75 Funded debt, 56 Funds. See Capital Factoring, 106–109, 245, 333, 340–341, 353, 356 Fair market value (FMV) appraisal, 111 Generally accepted accounting principles (GAAP), Fairness hearings, 298–299 552–553, 587–588 Fast growth companies, 32–33 Glass-Steagall Act, 309 Fee letter, 211–212 Godshall, Ned, 359 Fees: Goodwill, 28 banking services, 311 Government agencies, 169–193 and inventory financing, 109 source directory by minimum funding, 406 Filtering, 19–21 Graham Partners, 378–379 Finance companies, commercial. See Commercial Greenfield Commercial Credit, 336–355 finance companies Growth, business: Financial Accounting Standards Board (FASB), how fast to do it, 567–582 588 levers for, 568–572 Financial analysis, 17–18 stages of, 12–13 Financial covenants, 223, 226–231 Growth Capital Navigator, 3–4, 7–8 Financial statements, 220–222, 281–282, 551– Growth equity 562 case study, 367–369 Financing, acquisition, 39–41 Growth financing Financing hierarchy, 544–545 case study, 352–355, 370–374 Financing sources: Growth Strategy Navigator, 10, 11 directory, 397–521 Guarantee of collection, 241 master list by firm with contact information, Guarantee of payment and performance, 241 453–489 Guarantees, 241–243 master list by firm with location information, Guarantees, personal, 97–99 431–452 master list by firm with summary criteria, 490– Hamilton, John, 377 521 Hand, Brian, 362–364 Financing strategy: HandbookOfFinancingGrowth.com, 397 capital structure, 45–67 Hanley Wood, LLC, 393–395 closing the deal, 319–327 Harnish, Verne, 7 long-term, 142–143 Harvey, Bob, 380–382 managing investor/lender relationships, 325– Harvey, Mary, 380 326 Hedge funds, 164–166, 253 negotiations, 325 source directory by minimum funding, 406–407 role of investment bankers, 311–312 High-risk loans, 336–339 team, 321, 322 High-yield debt, 162, 250–252 timing, 322–323 High-yield offerings, 296–297 First right of refusal, 290 Hu, David, 358 504 loan program, 181–183 HUD. See Department of Housing and Urban Fixed assets, 577–578 Development, U.S. (HUD) Fixed charges, 230 Hybrid business model, 74 Fixed rate, 215 Hybrid securities, 536 Food and Drug Administration (FDA), 201

IIG Capital LLC, 356–358 Kohl, Stewart, 389–392 Import companies, 580–581 Import financing, 111, 113, 357, 358 Landis, Robert B., 392 Inactive public company (IPC), 194 Larson, Rick, 374 Incidental registration rights, 275–276, 288–289 Lawyers. See Counsel Income statement, 551–553 Leamon, Ann, 374 Income taxes, 560, 576–577 Leases/leasing companies, 116–119, 557–558 in startups, 585–586 source directory by minimum funding, 407 Incubators, 169–174 Leverage, 217 Industrial revenue bond, 257 advantages of, 161 Industry: case study, 336 debt/equity ratio, 57–62 and debt-to-equity ratio, 56 Industry investors, 166–168 ratios, 229–231 source directory by minimum funding, 423 used to maximize shareholder wealth, 48 Inflation, 540 Leveraged buyout (LBO), 119, 157–164, 389 Information rights, 146, 289 history of, 158–160 Initial public offerings (IPOs), 286, 307–310, 359– key terms and concepts, 161–162 361 revenue generation, 164 Innovation, 55 structure and organization, 163–164 Insolvency, 258 theory of, 160–163 Intangible assets, 556–557 Li, Mingfang, 54 Integration strategy, 39–40 Liability, 205, 557–560 Intellectual property (IP) royalty financing, 199– developing limits, 63–67 200 Life sciences industry, 123, 200–201 Intelligent Energy, Ltd., 359–361 Limited partnerships, 163 Intercreditor agreement, 238–239 Line of credit (LOC), 101, 103–105 Interest expense, 161 Liquidation analysis, 65 Interest rate, 254 Liquidation balance sheet, 64 and pricing alternatives, 215–218 Liquidation preference, 266–270, 284–285 Internal rate of return (IRR), 254, 389, 541–542 Liquidity, shareholder, 41–43 Internal Revenue Service (IRS), 349 Liquidity ratios, 228–229 International Accounting Standards Board (IASB), Loan covenants, 223–231 588 Loans. See also specific type, i.e. term loans International Financial Reporting Standards alternatives, 243 (IFRS), 588–590 borrower's financial statements, 220–222 International Trade Loan program, 187–188 borrower's operations, 222–223 Inventory, 555–556 borrower's organizational structure, 219–220 Inventory financing, 109–110, 357 documentation, 212–259 Investment bankers, 306–312 high-risk, 336–339 Investments: Small Business Administration, 175–191, 256– decision-making, 527, 541–543 257 Investors: specialized, 256–258 accredited, 84 U.S. Department of Agriculture, 191–193 comparisons, 138 Loan syndication, 234 individual, 82–83, 407 Lockup agreements, 289 strategic or industry, 166–168 London Interbank Offered Rate (LIBOR) loans, type of, 82–95 213 Investors' rights agreement, 288–290 Long-term debt, 56 Loss-reduction strategy, 346 Johnston Textiles, 385–387 Low-income housing financing, 257–258 Junior secured debt, 217–218 Junior secured loans, 248–249 MacNaughtan, David, 366 Junk bonds, 162, 250 Management buyout, 158 case study, 380–382, 385–387 Kirkpatrick, David, 370 Management consulting firms, 315–316

Management fees, 164 Operating covenants, 351 Management team, 54 Operating expenses, 537, 572 Manufacturing companies, 580 Operating income, 545 Market flex rights, 210 Operating leases, 117 Marketing, 578 Operating profit, 81 Market risk, 531 Operational profitability, 335 Market valuation, 28–29 Opportunity costs, 542–543 Mastering the Rockefeller Habits (Harnish), 7 Option pool, 264–266 Matheson, Mark, 335 Option to purchase, 290 Maximum total leverage ratio, 229, 247, 248 Outsourcing, 80 McKenzie Sports Products, Inc., 378 Media industry, 393–394 Participating preferred stock, 260 Merchant banks, 168–169, 307 Partners: source directory by minimum funding, 408 exit case study, 380–382 Mergers and acquisitions, 37 interaction with portfolio companies, 145–147 Meriturn Partners, 382–384, 385–387 Partnerships, limited, 163 Meso Fuel, Inc., 359–361 Payback, 541 Mezzanine debt, 162, 165 Payment-in-kind (PIK) dividends, 163, 254, 284 Mezzanine funding, 135, 152–157, 217–218, 249, Perfecting, 237 252–255, 352, 353 Performance monitoring, 147 case study, 377–378 Personal guarantees, 97–99 Micro-cap public entities, 193–196 Pharmaceuticals industry, 196, 201 Microloans, 183–184 Piggyback registration rights, 275–276, 288–289 Milestone financing, 93 PIPE (private investment in public equities), 195, Miller, Merton, 45 287, 295–296 Minimum debt service coverage ratio, 229, 247– Planning, 7–36 248 overview of the process, 8–9 Minimum fixed charge coverage ratio, 229 Plexus Capital, 380 Mining industry, 200 Pollution control loans, 188–189 Minority investment value, 33 Portfolio companies, 145–147 Modigliani, Franco, 45 Post-money valuation, 92, 139, 263–266 Monetary inflation, 540 Preemptive rights, 290 MontaVista Software Inc., 367–369 Preferred equity, 163 Moore, Peter, 196–197 Preferred stock, 204, 205, 255, 259, 267, 268, Mortgage debt financing, 116 270–271, 283 calculating cost of, 535 NAFTA (North American Free Trade Agreement), Premiums, 31–32 188 Premoney valuation, 92, 263–266 Negative covenants, 223, 224–225, 290 Prepayment covenants, 226 Negotiable instrument, 233 Prepayments, customer, 74–75 Net assets, 28 Preservation, 40 Net present value, 541 Price/pricing: Net working capital, 229 elasticity, 76–77 New Hampshire Community Loan Fund, 375–377 interest rates, 215–218 New Mexico Angels, Inc., 359–361 mezzanine financing, 155–156 Niche investment bank, 311, 345, 354–355 raising, 574, 576 Nominal cash flow, 539–540 and revenue, 76–77 Noncash expenses, 537 Private companies, 32 Nonrecourse debt financing, 199 Private equity, 119–122 North American Free Trade Agreement (NAFTA), case study, 378–379, 380–382, 382–384, 188 385–387, 388–392, 393–395 Notification, 106–107 source directory by minimum funding, 409–423 Private investment in public equities. See PIPE Offer in Compromise, 349 (private investment in public equities) Operating cash cycle, 81, 567, 568–569 Private placements, 291–293

Product lines, 579 Revolving credit line, 115, 161–162, 244 Profit, operating, 81 Revolving loans, 212, 214–215 Profitability, operational, 335 Richmond, George M., 361 Profit margin, 574 Ridgeway, Blake, 360 Pro forma statements, 221 Right of first offer, 290 Projects, 536 Risk, 528–534 Promissory note, 233–235 acceptable, 96 Protective provisions, 271 and cash flow, 540 Proxy models, 534 and leveraged buyouts, 160–161 Public companies, 32 River Cities Capital Funds, 362–364 and capital structure, 48 Riverside Company, 388–392 to private transaction, 388–392 Royalty financing, 196–201 Public Company Accounting Oversight Board, 314 case study, 365–366 Public offerings, 293–295 Rudnick, Donald M., 339, 343, 347, 352, 355 Purchase order financing, 110, 245, 344, 357–358 Rule 144, 252, 275, 296, 298 Russo, Vito, 387 Quick ratio, 229 Rutherfurd, James P., 395 Ryla Teleservices, 371–374 Rate of return, 29, 534 historical, 71 Safe harbor rules, 292 range of expected, 70 Sale leaseback, 111, 118–119 real, 540 Sale (of company), 41–43 Real estate development, 215 case study, 359–361 Real property loans, 245–246 Sales: Real rate of return, 540 and cash flow, 567 Recapitalization, 42–43, 252 SalesHound.com, 362–364 Recourse factoring, 106 Sarbanes-Oxley Act, 159, 195, 303 Redemption, 274, 287–288 Second lien/junior debt, 115, 165 Registrable shares, 288 Secured debt, 206–207 Registration rights, 274–276, 288–289 Secured loans, 243, 244–249 Relationships, strategic, 78, 325–326 Securities Act of 1933, 291–293, 298–299 Representations and warranties, 218–219, 279– Securities and Exchange Commission (SEC), 283 U.S., 206, 291 Research and development (R&D), 578 Securities laws, 206, 291–300 Reserve for holdback, 107 Security agreement, 235–238 Reserves, 560–561 Seed investments, 135–136, 142 Resource analysis, 22 Self-financeable growth (SFG) rate, 568, 572–573 Restart financing, 269–270 Selling cycle, 76 Restructuring: Senior debt, 115 case study, 382–384 Senior term loan, 115 Return on capital, 541 Series A, B, C financing, 142–143 Return on equity, 29 Service companies, 582 Return on invested capital (ROIC), 50 7(a) loans, 176–181, 188–189 Return on investments (ROI), 536–540 7(m) loans, 183–184 Revenue: Shareholders: developing alternative sources of, 73–74 goals and priorities, 19 and leveraged buyouts, 164 influence on capital structure, 63 and pricing, 76–77 liquidity, 41–43 Revenue sharing maximizing wealth of, 48, 526 case study, 375–377 objectives of, 5, 41, 50 Reverse acquisition, 194–195 Shareholders' agreement, 290–291 Reverse mergers, 297–298 Shelf registrations, 299–300 Reverse takeover (RTO), 195 Shell corporation, 194, 297–298 Reverse triangular merger, 298 ShopLocal LLC, 362–364 Review, 221 Short-form offerings, 294

Short-form registration rights, 275, 289 Term loans, 110–111, 212, 213, 244, 341 Shorting process, 287 characteristics of, 112 Siemens Venture Capital GmbH, 367–369 Term sheets, 90, 263–278 Silver, Martin, 358 Ticking fees, 211 Simerly, Roy L., 54 Time-weighted cash flow, 539–540 SJF Ventures, 370–374 Time-weighted returns, 540 Small Asset-Based Line loans, 189 Total cost, 108–109 Small Business Administration, U.S. (SBA), 175– Trade credit insurance, 105 191, 256–257 Trade financing, 356–358 Small Business Innovation Research (SBIR) Trade tranche, 111–113 Program, 190–191 Tranche B debt, 165 Small Business Investment Company (SBIC), 176 Transactional Equity, 113, 114, 357 Small Business Technology Transfer (STTR) Transaction fee amortization, 161 Program, 190–191 Transaction Valuation, 33–35 Small manufacturer, 182 Transcription Relief Services, LLC, 380–382 Specialized assets, 236 Trends: Specified purpose acquisition company (SPAC), industry, 56, 62 194 venture capital investing, 151–152 Staley, Franklin, 384 TSX Venture Exchange, 195 Stalking horse bidder, 386 Tull, W. David, 332 Standstill period, 240 Turnaround funding, 348–352 Startups. See also Early stage companies suggestions for, 583–586 Unallocated shelf registration statement, 300 Statement of cash flows, 561–562 Uniform Commercial Code (UCC), 237 Stock. See also Common stock; Preferred stock Unitranche financing, 116 dividends and splits, 548 Unsecured loans, 207, 243, 249–256 Stock options, 277 Stock purchase agreement, 279–283 Valuation. See also Post-money valuation; Strategic initiatives cash flow, 24 Premoney valuation Strategic investors, 166–168 and early stage investing, 92 source directory by minimum funding, 423 firms, 316–317 Strategic planning, 8, 10–26 gap, 40 aim of, 10–14 other contributing factors, 145 and business plan, 22–23 and venture capital investing, 138–145 common traps in, 13 Valuation, business, 27–36 template, 26 approaches to, 28–30 Subordinated debt, 153–154, 162, 378, 380 discounted cash flow, 29 Subordination agreement, 240–241 increasing value, 35–36 Subsidiary, wholly owned, 297–298 process of, 30–36 Sunk costs, 538–539 purpose of, 27–28 Suppliers/vendors, 75, 77–78 Value, enterprise, 143–144 Surety bond, 176 Value buildup, 135 Sweat equity, 74 Value creation, 13 SWOT (strengths, weaknesses, threats and Value maximization, 526–527 opportunities) analysis, 16 Value proposition, 15–16 Symbiosis, 40 Values, 10 Syndication, loan, 234 Vandevenne, Rurik G., 364 Van Ert, Eric, 395 Taxes, income, 560, 576–577 Variable rate, 215 in startups, 585–586 Vendors. See suppliers/vendors Tax planning, 313 Venture banking, 111–113 Team norms, 14–26 Venture capital (VC), 32, 122–152 Teaser, 320 average investment by stage, 137 Telecommunications industry, 251 business model, 136–138 Termination provisions, 278 case study, 362–364, 367–369

funding process, 130–136 industry overview, 123–127 investments by region, 127, 129 investor comparisons, 138 most active investors, 127, 128 selecting a venture capitalist, 136 source directory by minimum funding, 424–430 trends, 151–152 value-added investors, 127, 129–130 vs. angel investors, 85–86 Venture leasing, 118 Veronis Suhler Stevenson, 393–395 Vested for Growth, 375–377 Vesting, 277–278, 288 Vision, 10 Voting rights, 270–271, 285–286

Walkaway point, 325 Warehouse financing, 113–114, 357 Warner, Dave, 369 Warrant coverage, 256 Warranties. See Representations and warranties Weighted cost average of capital (WACC), 29, 34, 46, 545, 564–565 White, Leo, 375–377 Wilson, Mark and Evelyn, 371 Working capital, 25, 538 defined, 73 management of, 80–81

Zindera, Sabine, 369