What is an Asset Deal? An asset deal occurs when a buyer is interested in purchasing the operating assets of a business instead of stock shares. It is a type of M&A transaction. In these cases, the buyer completes the transaction by providing the selling company consideration for some or all of the assets they…
What is a Data Room? A data room is a secure place that is used to store privileged data, usually for legal proceedings or mergers and acquisitions transactions. Data rooms are used for storing documents, file sharing, securing sensitive documents, and conducting financial transactions. There are two types of data rooms: physical data rooms and…
What is a Letter of Commitment? A letter of commitment is a formal binding agreement between a lender and a borrower. It outlines the terms and conditions of the loan and the nature of the prospective loan. It serves as the agreement that initiates an official loan borrowing process. A commitment letter contains information about…
What is the Anti-Dilution Adjustment Clause? The anti-dilution adjustment clause is a provision contained in a security or merger agreement. The anti-dilution clause provides current investors with the right to maintain their ownership percentage in the company by purchasing a proportionate number of new shares at a future date when securities are issued. …
What is a Non-Conforming Loan? Non-conforming loans are loans that don’t check all the boxes necessary for the bank to fund them. There is a long list of potential reasons why a non-conforming loan may not meet all the traditional loan criteria, including the following: Insufficient credit With mortgage loans, the loan amount is higher…
What is a Hard Money Loan? A hard money loan is a type of financing that a borrower receives with physical property used as loan collateral. The loan – most often issued by private investors or non-bank financial companies – is typically used to provide relatively short-term financing. Hard money lenders expect to see their…
How to Add a Secondary Axis in Excel? The article below provides a step-by-step guide on how to add a secondary axis to charts in Microsoft Excel. A secondary vertical axis gives us more versatility with regards to data visualization and also provides us with the ability to plot multiple data series on the same…
What is a 363 Sale? A 363 Sale refers to the sale of an organization’s assets under Section 363 of the US Bankruptcy Code. The sale enables debtors to fulfill their obligations to creditors by selling their assets and using the funds collected to settle their debts. The purchasers of the assets benefit from the…
What is a Bailout Takeover? A bailout takeover refers to a scenario where the government or a financially stable company takes over control of a weak company with the goal of helping the latter regain its financial strength. The acquiring entity takes over the weak company, usually by means of purchasing a controlling amount of…
What is Covered Interest Rate Parity (CIRP)? Covered interest rate parity (CIRP) is a theoretical financial condition that defines the relationship between interest rates and the spot and forward currency rates of two countries. It establishes the fact that there is no opportunity for arbitrage using forward contracts, which are often used to make loose…
