Tag: Overview:

Certificate in Business Acumen Overview #sba #small #business

#business acumen

#

Certificate in Business Acumen

Call
+91 22 6162 3112

Lead business

Today’s managers operate in a globalised world with a rapidly changing and demanding business environment. Organisations are seeking leaders with the business acumen to navigate these changes and successfully run business units.

INSEAD’s Certificate in Business Acumen is designed to bring INSEAD to participants from select emerging markets, at their workplace and at their pace. Taught by the same world-class INSEAD faculty who teach in the MBA, Executive MBA and Executive Education programmes, it will enable participants to advance their business acumen for their organisations’ success.

Consisting of four modules that are delivered over three months, the programme enhances participants’ understanding and application of the cross-functional skills of business management. A variety of learning pedagogies, including video lectures, live webinar interactions, learning circles for group work, quizzes, assignments and self-assessments, will be combined to achieve the learning outcomes.

How you benefit

  • Boost your intellectual capital. Leverage INSEAD’s thought leadership in management, and deepen your knowledge of customer-centricity, strategy, finance and operations, to develop the skills required to lead a business.
  • Reinforce your brand capital. Obtain a certificate in management from INSEAD upon completion – with the top 20% of participants receiving a ‘Distinction’.
  • Build your social capital. Take advantage of the opportunity for rich peer learning from the diverse pool of participants and maximise the group-learning circles to get to know your peers and learn from their insights.

Participant Profile

The Certificate in Business Acumen is tailor made for working professionals from select emerging markets, across sectors and functions, who want to benefit from INSEAD’s thought leadership to accelerate their leadership journey.





Tags : , , , ,

An Overview Of Corporate Bankruptcy #business #franchise #opportunities

#business bankruptcy

#

An Overview Of Corporate Bankruptcy

If a company you’ve got a stake in files for bankruptcy, chances are you’ll get back pennies to the dollar. Different bankruptcy proceedings or filings generally give some idea as to whether the average investor will get back all or a portion of his investment, but even that is determined on a case-by-case basis. There is also a pecking order of creditors and investors of who get paid back first, second and last. In this article, we’ll explain what happens when a public company files for protection under U.S. bankruptcy laws and how it affects investors.

Two Major Types of Bankruptcy
Chapter 7
The U.S. Securities and Exchange Commission states that under Chapter 7 of U.S. Bankruptcy Code “the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company’s assets, and the money is used to pay off debt”. The investors, or creditors, who take the least risk are paid first.

For example, investors who take a relatively reduced risk in the company by purchasing corporate bonds must forgo the potential of seeing any excess profits the company may earn in the future. For the higher safety of the bonds, the investors agree to receive, at most, their specified interest payments. Equity holders, however, have the full potential of seeing their share of the company’s retained earnings. which would be reflected in the stock’s price. But the tradeoff for this possibility of boosted returns is the risk that the stock may lose value. As such, in the case of a Chapter 7 bankruptcy, equity holders may not be fully compensated for the value of their shares. In light of the risk-return tradeoff. it seems fair (and logical) that shareholders are second in line to bondholders when a bankruptcy does occur.

Secured creditors. who are even more risk-averse than regular bondholders, accept very low interest rates in exchange for the added safety of corporate assets being pledged against the company’s debt. Therefore, when a company does go under, secured creditors receive priority and are paid back before any regular bondholders begin to see their share of the pie. This principle is referred to as absolute priority. (For more insight, read the Stocks Basics Tutorial .)

Chapter 11
This proceeding of the U.S. Bankruptcy Code involves the reorganization of the debtor ‘s business affairs and assets. The company undergoing Chapter 11 expects to return to normal business operations and sound financial health in the future. It’s generally filed by corporations that need time to restructure debt that has become unmanageable. Chapter 11 gives the debtor a fresh start, which depends on the debtor’s fulfillment of obligations under the reorganization plan. A Chapter 11 reorganization is the most complex and, generally, the most expensive of all bankruptcy proceedings. It is therefore undertaken only after the company has carefully analyzed and considered all alternatives.

Chapter 11: The Drink of Choice
Public companies tend to try to file under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. Rather than simply turning over its assets to a trustee, a company undergoing Chapter 11 has the opportunity to restructure its financial framework and be profitable again. If it fails, all assets are liquidated and stakeholders are paid off according to absolute priority.

Keep in mind that Chapter 11 isn’t a get-out-of-jail-free card. When a company files for Chapter 11, that company is assigned a committee that represents the interests of creditors and stockholders. This committee works with the company to develop a plan to reorganize the company and to get it out of debt, reshaping it into a profitable entity. Shareholders may be given a vote on the plan, but as their priority is second to all creditors, this is never guaranteed. If no suitable reorganization plan can be prepared by the committee and confirmed by the courts, shareholders may not be able to stop their company’s assets from being sold off to pay creditors. (For related reading, check out Finding Profit In Troubled Stocks .)

How It Affects Investors
As an investor, you are between a rock and a hard place if your company faces bankruptcy. Clearly, nobody invests money into a company, whether through its stock or its debt instruments. expecting the company to declare bankruptcy. However, when you venture outside of the risk-free realm of government-issued securities, you are accepting this added risk.

When a company is going through bankruptcy proceedings, its stocks and bonds usually continue trading, albeit at extremely low prices. Generally, if you are a shareholder. you will usually see a substantial decline in the value of your shares in the time leading up to the company’s bankruptcy declaration. Bonds for near bankrupt companies are usually rated as junk.

When your company goes bankrupt, there is a very good chance you will not get back the full value of your investment. In fact, there is a chance you won’t get anything back. Here is how the SEC summarizes what may happen to stock- and bondholders during Chapter 11:

“During Chapter 11 bankruptcy, bondholders stop receiving interest and principal payments, and stockholders stop receiving dividends. If you are a bondholder. you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company. The new shares may be fewer in number and worth less. The reorganization plan spells out your rights as an investor and what you can expect to receive, if anything, from the company.”

Basically, once your company files under any type of bankruptcy protection, your opportunities and rights as an investor change to reflect the bankrupt status of the company. While some companies do indeed make successful comebacks after undergoing restructuring, you need to realize that the risks you accepted when you invested in the company can become reality. And if your stake in the pre-Chapter 11 company ends up being worth anything in the restructured firm, chances are it won’t be as much as it was when you first entered your position and it won’t be in the same form.

During Chapter 7 bankruptcy, investors are considered especially low on the ladder. Usually, the stock of a company undergoing Chapter 7 proceedings is usually worthless, and investors lose the money they invested. If you hold a bond, you might receive a fraction of its face value. What you receive depends on the amount of assets available for distribution and where your investment ranks on the priority list on the first page.

Secured creditors have the best chances of seeing the value of their initial investments come back to them. Unsecured creditors and shareholders must wait until secured creditors have been adequately compensated before they receive any compensation for the loss of their higher-yielding investments. Because equity owners are last in line, they usually receive little, if anything.

Conclusion
From an investor’s point of view, there isn’t much good to say about bankruptcy. No matter what type of investment you made in a company, once it goes bankrupt you are probably going to get a lower return on your investment than you once expected. As an individual investor, you don’t have any more say in a company’s restructuring plan than you do in any other corporate actions on which shareholders vote.

In general, Chapter 11 is better than Chapter 7, but in either case you shouldn’t expect much of your investment back. Relatively few firms undergoing Chapter 11 proceedings are able to be profitable again after a reorganization; even if they do become profitable again, it is not a quick process. As an investor, you should react to a company’s bankruptcy the same way you would if one of your stocks took an unexpected dive: recognize and accept the dramatically reduced prospects of the company, and ask yourself whether you still want to be invested in the company. If the answer is no, let go of your failed investment – holding on while the company undergoes bankruptcy proceedings will only lead to sleepless nights and perhaps even greater losses in the future.





Tags : , , , ,

Harvard Business Publishing Company Overview #business #journal

#harvard business publishing

#

Harvard Business Publishing Company Overview

Harvard Business Publishing (HBP) was founded in 1994 as a not-for-profit, wholly-owned subsidiary of Harvard University, reporting into Harvard Business School. Our mission is to improve the practice of management in a changing world. This mission influences how we approach what we do here and what we believe is important.

With approximately 350 employees, primarily based in Boston, with offices in New York City, India, and the United Kingdom, Harvard Business Publishing serves as a bridge between academia and enterprises around the globe through its publications and multiple platforms for content delivery, and its reach into three markets: academic, corporate, and individual managers. Harvard Business Publishing has a conventional governance structure comprising a Board of Directors. an internal Executive Committee. and Business Unit Directors.

The three market groups: Higher Education, Corporate Learning, and Harvard Business Review Group, produce a variety of media including print and digital (Harvard Business Review, Harvard Business Review Press Books, Harvard Business School Cases, Brief Cases, blogs), events (Participant-Centered Learning Seminars, Custom Events, Webinars), and online learning (Harvard ManageMentor, Leadership Direct, Online Courses, Simulations). Through these publishing platforms, Harvard Business Publishing is able to influence real-world change by maximizing the reach and impact of its essential offering—ideas. Read our corporate brochure to learn more about our business.

Higher Education
Business educators worldwide use course materials from the Higher Education group to add dynamic, real-life perspectives to undergraduate, MBA, and executive education programs. We also offer resources and seminars that support participant-centered learning, the cornerstone of a teaching practice that stimulates students’ thinking and prepares them for future managerial decision-making. The Higher Education web site expedites course planning and direct delivery of materials to students — including cases, articles, online simulations and courses.

Corporate Learning
Harvard Business Publishing Corporate Learning partners with clients to create world-class leadership development solutions for managers at all levels in global organizations and governments. We leverage the management insight, thought leadership, and expertise of Harvard Business School faculty and Harvard Business Review authors to provide solutions that are relevant to today’s most pressing business challenges. For more than 20 years, we have developed and delivered innovative, technology-enabled solutions that drive meaningful business results.

Harvard Business Review Group
Harvard Business Review is the leading destination for smart management thinking. Through its flagship magazine, books, and digital content and tools published on HBR.org, Harvard Business Review aims to provide professionals around the world with rigorous insights and best practices to help lead themselves and their organizations more effectively and to make a positive impact.





Tags : , , , ,

SBIC Program Overview #starting #a #new #business

#small business investment company

#

A multi-billion dollar program founded in 1958, the SBIC Program is one of many financial assistance programs available through the U.S. Small Business Administration. The structure of the program is unique in that SBICs are privately owned and managed investment funds, licensed and regulated by SBA, that use their own capital plus funds borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses. The U.S. Small Business Administration does not invest directly into small business through the SBIC Program, but provides funding to qualified investment management firms with expertise in certain sectors or industries.

This section provides an overview of the SBIC Program, providing information on the benefits to small businesses, how investment funds can participate and what the advantages are of investing in an SBIC. The content of this section, as well as a general overview of the Office of Investment and Innovation, is available for download by clicking the image below.

SBIC Program OII Initiatives – Briefers

Program Achievements Success Stories

On September 30th, 2013, the last day of the U.S. Government’s fiscal year, the SBIC Program closed another record year. Here are just a few of the results achieved:

  • The SBA issued $2.2 billion in new commitments to SBICs
  • $3.5 billion in financing dollars were invested in small businesses
  • 1,068 small businesses were financed, 30% of which were in low-to-moderate income areas or were minority- or women-owned businesses
  • . all at ZERO cost to taxpayers.

Some of the country’s most successful corporations received financing from SBICs during their early stages of growth. The program’s “success stories” include thousands of small businesses, but here are a few of the more recognizable names:

  • Staples
  • AOL
  • FedEx
  • Jenny Craig
  • Build-a-Bear Workshop
  • Outback Steakhouse

The SBIC Life Cycle:

Types of Licenses:

Investment funds licensed as SBICs currently have the option of applying for three different types of license:

  1. Standard Debenture License: Funds have been licensed as Standard Licensees since the program was founded in 1958. They have the broadest investment mandate, are licensed through a “rolling admissions” process and are eligible for two tiers of leverage capped at $150 M.
  2. Impact Investment License: The Impact license is for funds with an investment mandate targeted social as well as financial returns. The managers of these funds pledge to invest 50% of their capital in “impact” investments and are eligible for an expedited licensing process.
  3. Early Stage Innovation License: The Standard and Impact licenses are most suitable for investors targeting later-stage companies with cash flow. The Early Stage Innovation License, by contrast, is designed to attract investment fund managers with experience supporting companies in their earliest stages of growth. They have access to one tier of leverage, capped at $50 million and are licensed through an annual call (issued in December or January of each year) versus a rolling basis.

SBA Leverage Products:

Regardless of the license they hold, SBICs can take advantage of a variety of leverage products, each with unique terms and conditions. They include the Standard Debenture, the Low-to-Moderate Income Debenture and the Energy-Savings Debenture. For more information on the specifics of each of these products, please refer to the SBIC Applicants section of our website.

SBIC Investment Requirements:

Every fund licensed as an SBIC agrees to abide by the regulations governing our program (available in our SBIC Licensees section). What follows are some of the major regulations prospective applicants, licensees, private investors and small business owners should be aware of:

Small Businesses are defined as businesses with tangible net worth of less than $19.5 million AND an average of $6.5 million in net income over the previous two years at the time of investment. A business may also be deemed “small” using SBA’s N.A.I.C. code standards

SBICs must invest 25% of their capital in Smaller Businesses

Smaller Businesses are defined as businesses with tangible net worth of less than $6 million AND an average of $2 million in net income over the previous two years at the time of investment.

Invest in small businesses using loans, debt securities with equity features equity.

Invest in small businesses located in the U.S. or its territories

Invest in small businesses active in manufacturing, transportation, consumer products and other sectors that are not contrary to the public interest

Control small businesses for up to 7 years

Invest an amount greater than 30% of the SBIC’sprivate capital in any single portfolio company. With two tiers of SBA leverage, this means an SBIC may not invest more than 10% of their total capital (private + SBA) in any single portfolio company.

Invest in businesses with more than 49% of their employees located outside the U.S.

Invest in companies active in sectors deemed contrary to the public interest NOR may they invest in project finance, real estate or financial intermediaries

Control small businesses for longer than 7 years without first obtaining approval from the SBA

The following sections of our website contain more information about:





Tags : , ,

An Overview Of Corporate Bankruptcy #austin #business #journal

#business bankruptcy

#

An Overview Of Corporate Bankruptcy

If a company you’ve got a stake in files for bankruptcy, chances are you’ll get back pennies to the dollar. Different bankruptcy proceedings or filings generally give some idea as to whether the average investor will get back all or a portion of his investment, but even that is determined on a case-by-case basis. There is also a pecking order of creditors and investors of who get paid back first, second and last. In this article, we’ll explain what happens when a public company files for protection under U.S. bankruptcy laws and how it affects investors.

Two Major Types of Bankruptcy
Chapter 7
The U.S. Securities and Exchange Commission states that under Chapter 7 of U.S. Bankruptcy Code “the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company’s assets, and the money is used to pay off debt”. The investors, or creditors, who take the least risk are paid first.

For example, investors who take a relatively reduced risk in the company by purchasing corporate bonds must forgo the potential of seeing any excess profits the company may earn in the future. For the higher safety of the bonds, the investors agree to receive, at most, their specified interest payments. Equity holders, however, have the full potential of seeing their share of the company’s retained earnings. which would be reflected in the stock’s price. But the tradeoff for this possibility of boosted returns is the risk that the stock may lose value. As such, in the case of a Chapter 7 bankruptcy, equity holders may not be fully compensated for the value of their shares. In light of the risk-return tradeoff. it seems fair (and logical) that shareholders are second in line to bondholders when a bankruptcy does occur.

Secured creditors. who are even more risk-averse than regular bondholders, accept very low interest rates in exchange for the added safety of corporate assets being pledged against the company’s debt. Therefore, when a company does go under, secured creditors receive priority and are paid back before any regular bondholders begin to see their share of the pie. This principle is referred to as absolute priority. (For more insight, read the Stocks Basics Tutorial .)

Chapter 11
This proceeding of the U.S. Bankruptcy Code involves the reorganization of the debtor ‘s business affairs and assets. The company undergoing Chapter 11 expects to return to normal business operations and sound financial health in the future. It’s generally filed by corporations that need time to restructure debt that has become unmanageable. Chapter 11 gives the debtor a fresh start, which depends on the debtor’s fulfillment of obligations under the reorganization plan. A Chapter 11 reorganization is the most complex and, generally, the most expensive of all bankruptcy proceedings. It is therefore undertaken only after the company has carefully analyzed and considered all alternatives.

Chapter 11: The Drink of Choice
Public companies tend to try to file under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. Rather than simply turning over its assets to a trustee, a company undergoing Chapter 11 has the opportunity to restructure its financial framework and be profitable again. If it fails, all assets are liquidated and stakeholders are paid off according to absolute priority.

Keep in mind that Chapter 11 isn’t a get-out-of-jail-free card. When a company files for Chapter 11, that company is assigned a committee that represents the interests of creditors and stockholders. This committee works with the company to develop a plan to reorganize the company and to get it out of debt, reshaping it into a profitable entity. Shareholders may be given a vote on the plan, but as their priority is second to all creditors, this is never guaranteed. If no suitable reorganization plan can be prepared by the committee and confirmed by the courts, shareholders may not be able to stop their company’s assets from being sold off to pay creditors. (For related reading, check out Finding Profit In Troubled Stocks .)

How It Affects Investors
As an investor, you are between a rock and a hard place if your company faces bankruptcy. Clearly, nobody invests money into a company, whether through its stock or its debt instruments. expecting the company to declare bankruptcy. However, when you venture outside of the risk-free realm of government-issued securities, you are accepting this added risk.

When a company is going through bankruptcy proceedings, its stocks and bonds usually continue trading, albeit at extremely low prices. Generally, if you are a shareholder. you will usually see a substantial decline in the value of your shares in the time leading up to the company’s bankruptcy declaration. Bonds for near bankrupt companies are usually rated as junk.

When your company goes bankrupt, there is a very good chance you will not get back the full value of your investment. In fact, there is a chance you won’t get anything back. Here is how the SEC summarizes what may happen to stock- and bondholders during Chapter 11:

“During Chapter 11 bankruptcy, bondholders stop receiving interest and principal payments, and stockholders stop receiving dividends. If you are a bondholder. you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company. The new shares may be fewer in number and worth less. The reorganization plan spells out your rights as an investor and what you can expect to receive, if anything, from the company.”

Basically, once your company files under any type of bankruptcy protection, your opportunities and rights as an investor change to reflect the bankrupt status of the company. While some companies do indeed make successful comebacks after undergoing restructuring, you need to realize that the risks you accepted when you invested in the company can become reality. And if your stake in the pre-Chapter 11 company ends up being worth anything in the restructured firm, chances are it won’t be as much as it was when you first entered your position and it won’t be in the same form.

During Chapter 7 bankruptcy, investors are considered especially low on the ladder. Usually, the stock of a company undergoing Chapter 7 proceedings is usually worthless, and investors lose the money they invested. If you hold a bond, you might receive a fraction of its face value. What you receive depends on the amount of assets available for distribution and where your investment ranks on the priority list on the first page.

Secured creditors have the best chances of seeing the value of their initial investments come back to them. Unsecured creditors and shareholders must wait until secured creditors have been adequately compensated before they receive any compensation for the loss of their higher-yielding investments. Because equity owners are last in line, they usually receive little, if anything.

Conclusion
From an investor’s point of view, there isn’t much good to say about bankruptcy. No matter what type of investment you made in a company, once it goes bankrupt you are probably going to get a lower return on your investment than you once expected. As an individual investor, you don’t have any more say in a company’s restructuring plan than you do in any other corporate actions on which shareholders vote.

In general, Chapter 11 is better than Chapter 7, but in either case you shouldn’t expect much of your investment back. Relatively few firms undergoing Chapter 11 proceedings are able to be profitable again after a reorganization; even if they do become profitable again, it is not a quick process. As an investor, you should react to a company’s bankruptcy the same way you would if one of your stocks took an unexpected dive: recognize and accept the dramatically reduced prospects of the company, and ask yourself whether you still want to be invested in the company. If the answer is no, let go of your failed investment – holding on while the company undergoes bankruptcy proceedings will only lead to sleepless nights and perhaps even greater losses in the future.





Tags : , , , ,

An Overview Of Corporate Bankruptcy #business #tax

#business bankruptcy

#

An Overview Of Corporate Bankruptcy

If a company you’ve got a stake in files for bankruptcy, chances are you’ll get back pennies to the dollar. Different bankruptcy proceedings or filings generally give some idea as to whether the average investor will get back all or a portion of his investment, but even that is determined on a case-by-case basis. There is also a pecking order of creditors and investors of who get paid back first, second and last. In this article, we’ll explain what happens when a public company files for protection under U.S. bankruptcy laws and how it affects investors.

Two Major Types of Bankruptcy
Chapter 7
The U.S. Securities and Exchange Commission states that under Chapter 7 of U.S. Bankruptcy Code “the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company’s assets, and the money is used to pay off debt”. The investors, or creditors, who take the least risk are paid first.

For example, investors who take a relatively reduced risk in the company by purchasing corporate bonds must forgo the potential of seeing any excess profits the company may earn in the future. For the higher safety of the bonds, the investors agree to receive, at most, their specified interest payments. Equity holders, however, have the full potential of seeing their share of the company’s retained earnings. which would be reflected in the stock’s price. But the tradeoff for this possibility of boosted returns is the risk that the stock may lose value. As such, in the case of a Chapter 7 bankruptcy, equity holders may not be fully compensated for the value of their shares. In light of the risk-return tradeoff. it seems fair (and logical) that shareholders are second in line to bondholders when a bankruptcy does occur.

Secured creditors. who are even more risk-averse than regular bondholders, accept very low interest rates in exchange for the added safety of corporate assets being pledged against the company’s debt. Therefore, when a company does go under, secured creditors receive priority and are paid back before any regular bondholders begin to see their share of the pie. This principle is referred to as absolute priority. (For more insight, read the Stocks Basics Tutorial .)

Chapter 11
This proceeding of the U.S. Bankruptcy Code involves the reorganization of the debtor ‘s business affairs and assets. The company undergoing Chapter 11 expects to return to normal business operations and sound financial health in the future. It’s generally filed by corporations that need time to restructure debt that has become unmanageable. Chapter 11 gives the debtor a fresh start, which depends on the debtor’s fulfillment of obligations under the reorganization plan. A Chapter 11 reorganization is the most complex and, generally, the most expensive of all bankruptcy proceedings. It is therefore undertaken only after the company has carefully analyzed and considered all alternatives.

Chapter 11: The Drink of Choice
Public companies tend to try to file under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. Rather than simply turning over its assets to a trustee, a company undergoing Chapter 11 has the opportunity to restructure its financial framework and be profitable again. If it fails, all assets are liquidated and stakeholders are paid off according to absolute priority.

Keep in mind that Chapter 11 isn’t a get-out-of-jail-free card. When a company files for Chapter 11, that company is assigned a committee that represents the interests of creditors and stockholders. This committee works with the company to develop a plan to reorganize the company and to get it out of debt, reshaping it into a profitable entity. Shareholders may be given a vote on the plan, but as their priority is second to all creditors, this is never guaranteed. If no suitable reorganization plan can be prepared by the committee and confirmed by the courts, shareholders may not be able to stop their company’s assets from being sold off to pay creditors. (For related reading, check out Finding Profit In Troubled Stocks .)

How It Affects Investors
As an investor, you are between a rock and a hard place if your company faces bankruptcy. Clearly, nobody invests money into a company, whether through its stock or its debt instruments. expecting the company to declare bankruptcy. However, when you venture outside of the risk-free realm of government-issued securities, you are accepting this added risk.

When a company is going through bankruptcy proceedings, its stocks and bonds usually continue trading, albeit at extremely low prices. Generally, if you are a shareholder. you will usually see a substantial decline in the value of your shares in the time leading up to the company’s bankruptcy declaration. Bonds for near bankrupt companies are usually rated as junk.

When your company goes bankrupt, there is a very good chance you will not get back the full value of your investment. In fact, there is a chance you won’t get anything back. Here is how the SEC summarizes what may happen to stock- and bondholders during Chapter 11:

“During Chapter 11 bankruptcy, bondholders stop receiving interest and principal payments, and stockholders stop receiving dividends. If you are a bondholder. you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company. The new shares may be fewer in number and worth less. The reorganization plan spells out your rights as an investor and what you can expect to receive, if anything, from the company.”

Basically, once your company files under any type of bankruptcy protection, your opportunities and rights as an investor change to reflect the bankrupt status of the company. While some companies do indeed make successful comebacks after undergoing restructuring, you need to realize that the risks you accepted when you invested in the company can become reality. And if your stake in the pre-Chapter 11 company ends up being worth anything in the restructured firm, chances are it won’t be as much as it was when you first entered your position and it won’t be in the same form.

During Chapter 7 bankruptcy, investors are considered especially low on the ladder. Usually, the stock of a company undergoing Chapter 7 proceedings is usually worthless, and investors lose the money they invested. If you hold a bond, you might receive a fraction of its face value. What you receive depends on the amount of assets available for distribution and where your investment ranks on the priority list on the first page.

Secured creditors have the best chances of seeing the value of their initial investments come back to them. Unsecured creditors and shareholders must wait until secured creditors have been adequately compensated before they receive any compensation for the loss of their higher-yielding investments. Because equity owners are last in line, they usually receive little, if anything.

Conclusion
From an investor’s point of view, there isn’t much good to say about bankruptcy. No matter what type of investment you made in a company, once it goes bankrupt you are probably going to get a lower return on your investment than you once expected. As an individual investor, you don’t have any more say in a company’s restructuring plan than you do in any other corporate actions on which shareholders vote.

In general, Chapter 11 is better than Chapter 7, but in either case you shouldn’t expect much of your investment back. Relatively few firms undergoing Chapter 11 proceedings are able to be profitable again after a reorganization; even if they do become profitable again, it is not a quick process. As an investor, you should react to a company’s bankruptcy the same way you would if one of your stocks took an unexpected dive: recognize and accept the dramatically reduced prospects of the company, and ask yourself whether you still want to be invested in the company. If the answer is no, let go of your failed investment – holding on while the company undergoes bankruptcy proceedings will only lead to sleepless nights and perhaps even greater losses in the future.





Tags : , , , ,

Overview – Business Administration Degrees #business #economics

#business administration

#

Our Associate of Science online degree is a 20 course degree program, providing a full understanding of

industry principles and application to the field. Full-time students can complete the program in two years.

Our online Bachelor of Science degree provides an in-depth understanding of key tools and methods of the industry.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing our students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

Our Bachelor of Science online degree provides an in-depth understanding of key tools and

methods of the industry. Full-time students can complete this 40 course degree in four years.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.

MASTER OF BUSINESS ADMINISTRATION

Our Master of Business Administration online degree offers a hands-on approach to both business and community leadership, as part of a cutting-edge and stimulating educational experience.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.





Tags : , , , ,

Certificate in Business Acumen Overview #work #from #home #ideas

#business acumen

#

Certificate in Business Acumen

Call
+91 22 6162 3112

Lead business

Today’s managers operate in a globalised world with a rapidly changing and demanding business environment. Organisations are seeking leaders with the business acumen to navigate these changes and successfully run business units.

INSEAD’s Certificate in Business Acumen is designed to bring INSEAD to participants from select emerging markets, at their workplace and at their pace. Taught by the same world-class INSEAD faculty who teach in the MBA, Executive MBA and Executive Education programmes, it will enable participants to advance their business acumen for their organisations’ success.

Consisting of four modules that are delivered over three months, the programme enhances participants’ understanding and application of the cross-functional skills of business management. A variety of learning pedagogies, including video lectures, live webinar interactions, learning circles for group work, quizzes, assignments and self-assessments, will be combined to achieve the learning outcomes.

How you benefit

  • Boost your intellectual capital. Leverage INSEAD’s thought leadership in management, and deepen your knowledge of customer-centricity, strategy, finance and operations, to develop the skills required to lead a business.
  • Reinforce your brand capital. Obtain a certificate in management from INSEAD upon completion – with the top 20% of participants receiving a ‘Distinction’.
  • Build your social capital. Take advantage of the opportunity for rich peer learning from the diverse pool of participants and maximise the group-learning circles to get to know your peers and learn from their insights.

Participant Profile

The Certificate in Business Acumen is tailor made for working professionals from select emerging markets, across sectors and functions, who want to benefit from INSEAD’s thought leadership to accelerate their leadership journey.





Tags : , , , ,

An Overview Of Corporate Bankruptcy #suntrust #business #banking

#business bankruptcy

#

An Overview Of Corporate Bankruptcy

If a company you’ve got a stake in files for bankruptcy, chances are you’ll get back pennies to the dollar. Different bankruptcy proceedings or filings generally give some idea as to whether the average investor will get back all or a portion of his investment, but even that is determined on a case-by-case basis. There is also a pecking order of creditors and investors of who get paid back first, second and last. In this article, we’ll explain what happens when a public company files for protection under U.S. bankruptcy laws and how it affects investors.

Two Major Types of Bankruptcy
Chapter 7
The U.S. Securities and Exchange Commission states that under Chapter 7 of U.S. Bankruptcy Code “the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company’s assets, and the money is used to pay off debt”. The investors, or creditors, who take the least risk are paid first.

For example, investors who take a relatively reduced risk in the company by purchasing corporate bonds must forgo the potential of seeing any excess profits the company may earn in the future. For the higher safety of the bonds, the investors agree to receive, at most, their specified interest payments. Equity holders, however, have the full potential of seeing their share of the company’s retained earnings. which would be reflected in the stock’s price. But the tradeoff for this possibility of boosted returns is the risk that the stock may lose value. As such, in the case of a Chapter 7 bankruptcy, equity holders may not be fully compensated for the value of their shares. In light of the risk-return tradeoff. it seems fair (and logical) that shareholders are second in line to bondholders when a bankruptcy does occur.

Secured creditors. who are even more risk-averse than regular bondholders, accept very low interest rates in exchange for the added safety of corporate assets being pledged against the company’s debt. Therefore, when a company does go under, secured creditors receive priority and are paid back before any regular bondholders begin to see their share of the pie. This principle is referred to as absolute priority. (For more insight, read the Stocks Basics Tutorial .)

Chapter 11
This proceeding of the U.S. Bankruptcy Code involves the reorganization of the debtor ‘s business affairs and assets. The company undergoing Chapter 11 expects to return to normal business operations and sound financial health in the future. It’s generally filed by corporations that need time to restructure debt that has become unmanageable. Chapter 11 gives the debtor a fresh start, which depends on the debtor’s fulfillment of obligations under the reorganization plan. A Chapter 11 reorganization is the most complex and, generally, the most expensive of all bankruptcy proceedings. It is therefore undertaken only after the company has carefully analyzed and considered all alternatives.

Chapter 11: The Drink of Choice
Public companies tend to try to file under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. Rather than simply turning over its assets to a trustee, a company undergoing Chapter 11 has the opportunity to restructure its financial framework and be profitable again. If it fails, all assets are liquidated and stakeholders are paid off according to absolute priority.

Keep in mind that Chapter 11 isn’t a get-out-of-jail-free card. When a company files for Chapter 11, that company is assigned a committee that represents the interests of creditors and stockholders. This committee works with the company to develop a plan to reorganize the company and to get it out of debt, reshaping it into a profitable entity. Shareholders may be given a vote on the plan, but as their priority is second to all creditors, this is never guaranteed. If no suitable reorganization plan can be prepared by the committee and confirmed by the courts, shareholders may not be able to stop their company’s assets from being sold off to pay creditors. (For related reading, check out Finding Profit In Troubled Stocks .)

How It Affects Investors
As an investor, you are between a rock and a hard place if your company faces bankruptcy. Clearly, nobody invests money into a company, whether through its stock or its debt instruments. expecting the company to declare bankruptcy. However, when you venture outside of the risk-free realm of government-issued securities, you are accepting this added risk.

When a company is going through bankruptcy proceedings, its stocks and bonds usually continue trading, albeit at extremely low prices. Generally, if you are a shareholder. you will usually see a substantial decline in the value of your shares in the time leading up to the company’s bankruptcy declaration. Bonds for near bankrupt companies are usually rated as junk.

When your company goes bankrupt, there is a very good chance you will not get back the full value of your investment. In fact, there is a chance you won’t get anything back. Here is how the SEC summarizes what may happen to stock- and bondholders during Chapter 11:

“During Chapter 11 bankruptcy, bondholders stop receiving interest and principal payments, and stockholders stop receiving dividends. If you are a bondholder. you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company. The new shares may be fewer in number and worth less. The reorganization plan spells out your rights as an investor and what you can expect to receive, if anything, from the company.”

Basically, once your company files under any type of bankruptcy protection, your opportunities and rights as an investor change to reflect the bankrupt status of the company. While some companies do indeed make successful comebacks after undergoing restructuring, you need to realize that the risks you accepted when you invested in the company can become reality. And if your stake in the pre-Chapter 11 company ends up being worth anything in the restructured firm, chances are it won’t be as much as it was when you first entered your position and it won’t be in the same form.

During Chapter 7 bankruptcy, investors are considered especially low on the ladder. Usually, the stock of a company undergoing Chapter 7 proceedings is usually worthless, and investors lose the money they invested. If you hold a bond, you might receive a fraction of its face value. What you receive depends on the amount of assets available for distribution and where your investment ranks on the priority list on the first page.

Secured creditors have the best chances of seeing the value of their initial investments come back to them. Unsecured creditors and shareholders must wait until secured creditors have been adequately compensated before they receive any compensation for the loss of their higher-yielding investments. Because equity owners are last in line, they usually receive little, if anything.

Conclusion
From an investor’s point of view, there isn’t much good to say about bankruptcy. No matter what type of investment you made in a company, once it goes bankrupt you are probably going to get a lower return on your investment than you once expected. As an individual investor, you don’t have any more say in a company’s restructuring plan than you do in any other corporate actions on which shareholders vote.

In general, Chapter 11 is better than Chapter 7, but in either case you shouldn’t expect much of your investment back. Relatively few firms undergoing Chapter 11 proceedings are able to be profitable again after a reorganization; even if they do become profitable again, it is not a quick process. As an investor, you should react to a company’s bankruptcy the same way you would if one of your stocks took an unexpected dive: recognize and accept the dramatically reduced prospects of the company, and ask yourself whether you still want to be invested in the company. If the answer is no, let go of your failed investment – holding on while the company undergoes bankruptcy proceedings will only lead to sleepless nights and perhaps even greater losses in the future.





Tags : , , , ,

Overview – Business Administration Degrees #business #savings #account

#business administration

#

Our Associate of Science online degree is a 20 course degree program, providing a full understanding of

industry principles and application to the field. Full-time students can complete the program in two years.

Our online Bachelor of Science degree provides an in-depth understanding of key tools and methods of the industry.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing our students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

Our Bachelor of Science online degree provides an in-depth understanding of key tools and

methods of the industry. Full-time students can complete this 40 course degree in four years.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.

MASTER OF BUSINESS ADMINISTRATION

Our Master of Business Administration online degree offers a hands-on approach to both business and community leadership, as part of a cutting-edge and stimulating educational experience.

Our business administration degrees are enriched with general education courses exposing students to a diverse variety of academic knowledge creating a well-rounded education.

Preparing students for employment through a strong academic foundation combined with hands-on experience, specialized internships and mentoring programs.





Tags : , , , ,