A handy, deskside reference on various types of corporate financing.
Long-term financing can have enormous implications in the business world, yet many entrepreneurs and business managers without financial backgrounds are likely to be ignorant of it. Debut author Ohle, head of her own financial advisory firm, offers a thorough introduction to three key forms: equity, debt, and subordinate financing. The book begins by demonstrating by example “how various financial instruments can come together to produce a beneficial outcome.” This sets the stage for definitional text that explains in concise terms the meanings of everything from “balance sheet” to “Initial Public Offering.” It discusses the three main long-term financing areas in considerable detail and in separate chapters; one chapter, for example, covers stages of equity financing, the differences between common shares and preferred shares, strategic investors and financial investors, and private placement and public offering. It also covers shareholder agreements, exit alternatives, funding arrangements, valuation, and more. Managers looking for a practical road map will find the closing chapter, “Mechanics of a Financing Transaction,” to be particularly beneficial; it provides advice about what “financing routes to pursue” and how to structure an effective presentation for an investment or lending opportunity. Ohle effectively augments the text with a number of case studies, drawn from her own experience, that illustrate various financial transactions. Definitions and “insider tips” pepper the text, and charts abound; appendices contain helpful checklists and references. Although some of the content is occasionally technical, such as a detailed statistical explanation of “return calculations,” the book is blissfully brief, mostly streamlining a complex topic and rendering it comprehensible. Overall, this authoritative, handsome book should be a valuable financial reference for any business manager.
A professionally packaged, well-written guide for people involved in financial decisions.