A leveraged buyout is a financial transaction in which a company is purchased with a combination of equity and debt, such that the company's cash flow is the collateral used to secure and repay the borrowed money. The use of debt, which has a lower cost of capital than equity, serves to reduce the overall cost of financing the acquisition; the cost of debt is lower because interest payments reduce corporate income tax liability, whereas dividend payments do not. This reduced cost of financing allows greater gains to accrue to the equity, and, as a result, the debt serves as a lever to increase the returns to the equity; the term LBO is employed when a financial sponsor acquires a company. However, many corporate transactions are funded by bank debt, thus also representing an LBO. LBOs can have many different forms such as management buyout, management buy-in, secondary buyout and tertiary buyout, among others, can occur in growth situations, restructuring situations, insolvencies. LBOs occur in private companies, but can be employed with public companies.
As financial sponsors increase their returns by employing a high leverage, they have an incentive to employ as much debt as possible to finance an acquisition. This has, in many cases, led to situations in which companies were "over-leveraged", meaning that they did not generate sufficient cash flows to service their debt, which in turn led to insolvency or to debt-to-equity swaps in which the equity owners lose control over the business to the lenders. LBOs have become attractive as they represent a win-win situation for the financial sponsor and the banks: the financial sponsor can increase the rate of returns on its equity by employing the leverage. Banks can increase their likelihood of being repaid by obtaining security; the amount of debt that banks are willing to provide to support an LBO varies and depends, among other things, on: The quality of the asset to be acquired The amount of equity supplied by the financial sponsor The history and experience of the financial sponsor The overall economic environmentFor companies with stable and secured cash flows, debt volumes of up to 100% of the purchase price have been provided.
In situations of "normal" companies with normal business risks, debt of 40–60% of the purchase price are usual figures. The possible debt ratios vary among the regions and the target industries. Depending on the size and purchase price of the acquisition, the debt is provided in different tranches. Senior debt: This debt is secured with the assets of the target company and has the lowest interest margins Junior debt: this debt has no security interests and thus bears higher interest marginsIn larger transactions, sometimes all or part of these two debt types is replaced by high yield bonds. Depending on the size of the acquisition, debt as well as equity can be provided by more than one party. In larger transactions, debt is syndicated, meaning that the bank who arranges the credit sells all or part of the debt in pieces to other banks in an attempt to diversify and hence reduce its risk. Another form of debt, used in LBOs are seller notes in which the seller uses parts of the proceeds of the sale to grant a loan to the purchaser.
Such seller notes are employed in management buyouts or in situations with restrictive bank financing environments. Note that in close to all cases of LBOs, the only collateralization available for the debt are the assets and cash flows of the company; the financial sponsor can treat their investment as common equity or preferred equity among other types of securities. Preferred equity has payment preferences to common equity. In addition to the amount of debt that can be used to fund leveraged buyouts, it is important to understand the types of companies that private equity firms look for when considering leveraged buyouts. While different firms pursue different strategies, there are some characteristics that hold true across many types of leveraged buyouts: Stable cash flows - The company being acquired in a leveraged buyout must have sufficiently stable cash flows to pay its interest expense and repay debt principal over time. So mature companies with long-term customer contracts and/or predictable cost structures are acquired in LBOs.
Low fixed costs - Fixed costs create substantial risk for Private Equity firms because companies still have to pay them if their revenues decline. Little existing debt - The "math" in an LBO works because the private equity firm adds more debt to a company's capital structure, the company repays it over time, resulting in a lower effective purchase price. Valuation - Private equity firms prefer companies that are moderately undervalued to appropriately valued. Strong management team - Ideally, the C-level executives will have worked together for a long time and will have some vested interest in the LBO by rolling over their shares when the deal takes place; the first lever
A homegoing service is an African-American Christian funeral tradition marking the going home of the deceased to the Lord or to heaven. It is a celebration that has become a vibrant part of African American culture; as with other traditions, practices and norms of African American culture, this ritual for dealing with death was shaped by the African American experience. The history of the homegoing service can be traced back to the arrival of African slaves in America. Early during the slave trade, slaves believed death meant their soul would return home to their native Africa, they were not allowed to congregate to perform any kind of ritual for burying the dead because slave owners were fearful the slaves would conspire to create an uprising during any such gathering. In an effort to control the slave population, slave owners introduced slaves to Protestantism to placate and subdue them; the Old Testament stories of God and Moses freeing a captive and enslaved race resonated with the slaves.
The New Testament stories of Jesus and promises of glory in heaven and a far better after-life allowed slaves to forge through the turmoil of mortal life and look forward to the day when they would return home to the Lord. They embraced Christianity and death, for slaves, was viewed as freedom, their death rituals were jubilant and it became one of the earliest forms of African American culture. At the beginning of the twentieth century there were few, if any black-owned or black-managed funeral homes. Survivors of deceased blacks were forced to depend on white funeral homes for embalming if they would agree to service them. Jim Crow laws and white bias required blacks to enter these white funeral homes through back doors and basements, a degrading experience that added to the tragedy of losing a loved one. Although the embalming was done by white funeral homes, the homegoing service took place in the black Christian church; the churches began forming burial societies to collect money for funerals.
Black businessmen who opened funeral homes during the early-to-mid-twentieth century saw not only a business opportunity, but a way to help the community. Funeral parlors were among some of the first black-owned businesses and the black funeral director was a trusted friend and neighbor in the community; the tradition of the black community funeral director and the support of the black Christian church exists in many black communities today. A homegoing service follows many of the same practices as a funeral service. There are pall bearers and flowers and the service is held in a Christian church. But, because African-American Christians believe death marks the return to the Lord and an end to the pain and suffering of mortal life, the homegoing service is an occasion marked by rejoicing because the deceased is going on to a better place. A homegoing service contains some or all of these elements: Musical prelude Processional Prayers Songs Funeral Readings Acknowledgements Reading of Cards & Condolences Reading of Funeral Resolutions Obituary Reading Eulogy or Tribute Final Viewing Benediction Recessional, Interment or CommittalA homegoing service is sometimes reminiscent of an African-American Christian church service.
In addition to the eulogy, there is a sermon and a choir that sings gospel hymns. The service allows for friends and family to speak about their remembrances of the deceased. Homegoing Service goers may experience both rejoicing. Holloway, Karla.. Passed On: African American Mourning, 3 - 19. USA: Duke University Press; the History of African American Funeral Service.. Retrieved from Woods-Valentine Mortuary. Homegoing Services and the Black Community!.. Retrieved from The Old Black Church Blog. Marsden, Sara J. Homegoing Funerals: An African American Funeral Tradition.. Retrieved fromU. S. Funerals. Elaine Nichols; the Last Miles of the Way: African-American Homegoing Traditions, 1890-present: Exhibition Dates, June 4, 1989-December 1, 1989. South Carolina State Museum. "When it's all over: African American homegoing celebrations". University of Wisconsin--Madison. 1996. Http://theoldblackchurch.blogspot.com/2010/09/home-going-services-and-black-community.html http://www.us-funerals.com/funeral-articles/homegoing-funerals.html#.
Eumetula is a genus of minute sea snails, marine gastropod molluscs in the family Newtoniellidae. Species in the genus Eumetula include: Eumetula albachiarae Cecalupo & Perugia, 2014 Eumetula aliceae Eumetula arctica Eumetula bimarginata Eumetula bouvieri Eumetula dilecta Thiele, 1912 Eumetula eucosmia Bartsch, 1911 Eumetula intercalaris Eumetula macquariensis Tomlin, 1948 Eumetula michaelseni †Eumetula mourloni Briart and Cornet 1873 Eumetula ornata Eumetula pulla Eumetula strebeli Eumetula striata Gulbin, 1982 Eumetula vicksburgella MacNeil in MacNeil & Dockery Eumetula vitrea Tore Høisæter Species brought into synonymy Eumetula crystallina: synonym of Varicopeza crystallina Powell A. W. B. New Zealand Mollusca, William Collins Publishers Ltd, New Zealand 1979 ISBN 0-00-216906-1 "Eumetula". Integrated Taxonomic Information System. ZipCodeZoo Bouchet P. & Warén A.. Revision of the Northeast Atlantic abyssal Mesogastropoda. Bollettino Malacologico supplemento 3: 579-840 Gofas, S.. Mollusca, in: Costello, M.
J. et al.. European register of marine species: a check-list of the marine species in Europe and a bibliography of guides to their identification. Collection Patrimoines Naturels, 50: pp. 180–213 Spencer, H.. B.. All Mollusca except Opisthobranchia. In: Gordon, D.. New Zealand Inventory of Biodiversity. Volume One: Kingdom Animalia. 584 pp