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Abstract

There are two basic sources of finance: (1) equity with ownership rights, and (2) debt with an obligation to pay back the amount borrowed (principal) and a rental charge for use of the money (interest). In between there are a number of financing techniques—options, warrants and equity kickers.

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Notes

  1. Robert Brown and Alan S. Gutterman, Financing Start-Ups: How to Raise Money for Emerging Companies (New York: Aspen, 2002), 6–8.

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  2. Brown and Gutterman, Emerging Companies Guide: A Resource for Professionals and Entrepreneurs (Chicago: American Bar Association, 2005), 89.

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  3. Paul Asquith, David W. Mullins, Jr., and Eric D. Wolff, “Original Issue High-Yield Bonds: Aging Analyses of Defaults, Exchanges, and Calls,” The Journal of Finance 44 (September 1989): 923–52.

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  4. Bryan Burrough and John Helyar, Barbarians at the Gate (New York: HarperCollins, 1990).

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  5. R. Charles Moyer, James R. McGuigan, and William J. Kretlow, Contemporary Financial Management (New York: Thomson South-Western, 2006), 261.

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© 2007 Robert L. Brown

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Brown, R.L. (2007). Finance. In: The Concise Guide to Mergers, Acquisitions and Divestitures. Palgrave Macmillan, New York. https://doi.org/10.1057/9780230608948_4

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