Investors | Easy Money

NYSE to be Acquired by German Company

The holding company of the New York Stock Exchange (NYSE), called the NYSE Euronext has broken the information that the management of NYSE Euronext has agreed in principle to be acquired by the holding company of the Frankfurt stock exchange called the Deutsche Boerse.

As of now, no name has been given for the new entity, although it is likely that the words New York will leave the name, according to some sources. The new entity will have two headquarters. One will be located at Frankfurt and the second one will be located at New York. According to the agreement reached, CEO of the NYSE Euronext will become the chief Executive of the merged entity and CEO of Deutsche Boerse will be the Chairman of the new company.

According to the market experts, the combined entity will be worth $25 billions, making it one of the largest in the financial markets sector. With respect to the share holding pattern, NYSE Euro Next will hold 40% and Deutsche Boerse will hold 60% of the new company. The top management of both the entities has recently signed the deal. Next logical step will be to get the approval of the shareholders and Industry regulators.

One of the interesting things to note is that in 2007, NYSE outbid Deutsche Boerse to buy Euronext. NYSE Euronext has been running the derivative markets in Amsterdam, Brussels and Lisbon. Deutsche Boerse has been running the German Stock Exchange, the largest stock exchange in Europe and also operates the Europe’s biggest derivative market called the Eurex. Both the companies consider this development as a positive one and are of the opinion that this deal will greatly help in improving the operating efficiency and reducing the operating costs of both the companies.

Some have said that this aquisistion is symbolic of New York’s changing roll in the financial markets. No longer the head of all trading, New York has become only the sixth most powerful stock exchange in the world in recent years.

Filed Under: Businesses, Investors Tagged With: New York Stock Exchange, NYSE Euronext

Egypt and US Oil

With the recent news of what is going on in Egypt, you might ask yourself what does it have to do with me? With the on going crisis in Iraq and many other places in the Middle East, the United States have come close to losing their normal sources for oil. Egypt has become an important back up source of oil.

This is not only because they have oil to sell but also because they have a better relationship with America than most middle eastern countries that are so well known for having oil. This means every time something goes wrong in Egypt, no matter what it is, you will be feeling the hurt at the gas pump. If Egypt cannot give the US the oil needed when it is needed, there could be very big consequences for the United States. Even if you don’t drive a car you will be feeling the price increases if they go too far.

The last time the oil prices rose too high, companies and services all started to raise their prices to cover the increased fuel cost for the delivery of their items. Even public transportation raised its prices in many areas due to the increase in oil prices.

Until the United States can find another source of oil, or some how becomes less dependent on it, people will keep feeling the pain every time there is a shift in oil prices regardless of which country the problem started in. Egypt is just the most recent country that we are dependent on. It is not a quick fix solution however as

Sometimes people forget that there are far more uses for oil than just fueling cars. Everything from plastics to chemicals use oil at some stage in their creation. If every car in America stopped using gas it would only lessen the problem. It is still up to the president as well as the oil companies who will be depended on should another oil crisis erupt.

Filed Under: Businesses, Investors Tagged With: Egypt, Middle East, Price of petroleum

Startegy for Negotiating with Investors

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Negotiating with investors doesn’t have to be traumatic. Some key strategies can help you come out on top while completing a deal that all parties will consider fair.

Read the Mood

An important part of any consultation is to know the mood of your audience. It is crucial to do some homework before the meeting and understand the viewpoint of the audience. When talking about investors, their tolerance for risk or the health of their current portfolios may be a factor. If the stock market is down overall you may believe that their portfolios could be down as well. Another issue to consider is observing the behavior of your audience. If they are friendly and talkative, they may be open and receptive the deal that you are offering.

Adjust and Deliver

Being able to read the mood of your audience and adjust accordingly can mean the difference between success and failure. This mood does not have to be constant. Your group could start the meeting in high spirits but during presentation lose interest. This could be especially true after lunch time or late in the day. It is important to be able to insert some energy into a group that is fading away. One way to bring a group’s attention back is to ask questions. Asking questions to affirm their views or best interests can bring them back, mentally and physically, to the table.

Fianl Thoughts

People are said to be like snowflakes: no two are alike. Being able to adjust the delivery of your message is vital to successful meetings. If you dealt with your contact at your bank last week, there is no guarantee that their mood and disposition will be the same today. The starting point, when negotiating with investors, is to understand their views before the meeting. The next step is to make necessary adjustments based on their observed mood and reactions in the present.

Filed Under: Investors

Negotiating with Investors – The First Meeting

When searching for financing, the meeting with people that can provide investment capital can be daunting. Keeping a few ideas in mind when negotiating with investors can put you at ease while you deliver the information needed to prove that your project deserves funding. It is important to remember that they are more important to you than you are to them. The financial backer has the power in this situation but that is not all bad. The 10-20-30 rule is a key to presenting your plan.

10 Slides
If you are using software like PowerPoint or just printed material, 10 is the magic number. Too much content can kill any meeting from the start. 10 slides or pages of printed material are manageable while allowing enough time to drive home the key ideas of the meeting.
20 minutes
As we mentioned above, when negotiating with investors, time is money. Their time is valuable and respecting that time is paramount. By keeping a presentation to 20 minutes the backers can ask for more details or end the meeting. If they are, truly, not interested in the project that you have pitched, it is probably best to thank them and keep them as a contact. New projects may come up that are better suited to their needs.
30 Point-Font
This comment is directed to presentation design, such as PowerPoint, but the lesson translates to printed matter, too. Decision makers do not want to be saddled with details. Keep the font large and do not include minute details. The purpose of the first meeting is to generate interest. 62 pages of pro-forma financials do not have a place in the first meeting. It would be wise to have as much detailed information as possible available if requested-after the supporters show interest.

Having a successful meeting with investors is not that hard when the 10-20-30 rule is followed.

Filed Under: Investors

Business Tips for Start-ups Negotiating with Suppliers

When your business is just getting started there are tons of details to work out. Most suppliers are willing to work with new businesses because they understand the success of the business will help the suppliers own bottom line. Sometimes the suppliers or their representatives see small businesses as a nuisance and leave their needs until they have to be dealt with.
Try to negotiate with the supplier to reduce costs. Lowering the costs of inventory can help make your balance sheet look more attractive to loan institutions and other potential funders. Even when the supplier sees your business a small potatoes, they may be interested in providing a discount in exchange for a standard monthly order, an automated order, or other time reducing incentives for them. Basically, consider what will be valuable to your supplier that will not cost your small business a monetary amount and offer this to help reduce costs. Negotiate with the supplier with the understanding that your business is here for the long run and you are not a temporary client.
Negotiate the price of the supply but also negotiate other features as well. Your standard order negotiation should have a provision to terminate the contract and order. If your company can guarantee a long term order to the supplier, they are more willing to offer you a lower price. To protect yourself be sure there is a clause to terminate the order if your company goes out of business or has a drastic reduction in sales. You may be able to order a year or four year quantity at one time but have the order delivered in smaller quantities at regular intervals. The invoice will be paid in payments based on the shipment schedule. Many small businesses can use these creative negotiating practices to secure better prices and improve the balance sheet.

Filed Under: Businesses, Investors Tagged With: Business, Small business, Supply chain

A Basic Guide to Sports Betting Sites

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As technology advances people are finding more effective ways to do things. The new technology has made everything easier to use and readily available. Because of this those that are looking to make a little money often turn to their computer to do so. There are lots of ways that people can make money online. One of the more popular methods is through online gaming. Instead of going to a store, people can now gamble from the comfort of their own homes by using sports betting websites.

There are lots of websites that people can go to in order to play games for money or to make bets. Those that are interested in sports betting usually try a few different websites before they settle on the one that they like the best.

Online sports betting sites allows users to bet on sports team in almost every sport. They also bet on things like horse and dog races. In fact some websites even allow betting on the outcome of reality television competitions. Regardless of what the user is looking for in terms of gambling there is something to entertain everybody at most sports betting websites.

Sports betting is generally very simple. People place bets on what team they think will win the game and if they are right they will win some money. If they lose the website will keep the original amount that was gambled. Some people like to make their bets more interesting by betting on the number of points a certain team will win by.

Thanks to the Internet there are many reputable sites that one can use to place a bet. However, users should make sure that the site that they are using is reputable. They should also take the time to learn about what restrictions their country places on online gambling. Some websites do not accept international customers.

Filed Under: Businesses, Investors Tagged With: Betting strategy, Gambling, Sport, Sports betting

How to Know When Your Business Needs a CFO

A good problem to have in business is growth but if you can’t manage the growth and finances, it may be a missed opportunity. Knowing when to hire a Chief Financial Officer may mean the difference in a business that continues to grow and a business that stagnates.
A small business owner likely chose his or her business based on a product or service that is enjoyed. This is great for the daily grind but can wreak havoc on the company books and financial plan. If you are unsure of how to invest your company’s new profits it may be time to hire a CFO. The payroll, bank statements and projecting the future is too much for an entrepreneur on top of the duties of running the business.
Avoid getting overwhelmed, this will lead to stress and make you want to close up shop. The CFO can help add to the bottom line even though the position is not a revenue generator. Saving money is the same as making money. The effective CFO will show the employer how to more efficiently use the revenue which can increase its leverage. Compare this improvement to the alternative of the business owner killing the business.
If you frequently receive statements that you owe money or taxes that you did not know about you may need a CFO. This professional is charged with staying on top of the financial situations of the company. He or she will help you avoid late fees and penalties. When you are continually late on your bank loans the credit score will be weakened and increase your interest rate for future loans. If the books are always out of order and expenses cannot be tracked within a reasonable period it is time for a CFO to come in and help the company. And finally, a business owner who does not have time to plan and forecast needs a CFO to help with administrative duties.

Filed Under: Businesses, Investors Tagged With: Business, Chief financial officer, Finance

The Art of Saving Money

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Black Friday has recently come and gone, and it was interesting to see my friends going berserk about the many sales, deals and discounts being offered across the retail spectrum. Personally, I would rather shop throughout the year using coupons, coupon codes and other special deals to save all throughout the year than to try and save some money once annually.

I find that there is something cathartic about shopping, especially when you have coupons and other tricks up your sleeve that will help you score some really great deals. For example, when I go to a store like Kohls, I make sure to have not only Kohls coupons, but manufacturer coupons as well. I make sure to shop when the items I want to buy are on sale, and combine the sale prices with the coupons for an even better deal.

I think it is really important to know how to shop. Shopping in an informed and educated manner is the best way to ensure you get the best deal no matter when you are shopping throughout the year. Coupons will allow you to save hundreds if not thousands of dollars in a single year on everything that you purchase. The key to benefiting from this type of purchasing is to do some basic due diligence in your shopping.

First and foremost, you need to shop from a list. Do not buy anything that is not on your list. Next, you need to shop online for coupons and other deals before you go shopping so you have a good idea of what something is worth before you spend. When you know what the cheapest is that you can get something for, it puts some serious perspective on every purchase that you make. These simple steps can go a really long way in helping you save money.

Filed Under: Businesses, Investors Tagged With: Black Friday, Coupon, Kohls, Shopping

How to Appeal to the Venture Capitalist Investor

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Recognizing trends are essential to knowing how to lure new investors. Start-up businesses have a difficult time securing sufficient funding from traditional investors. The option is to seek out the venture capitalist. Even though all professionals make decisions based on their own investment model there are similarities among the choices they make.
Venture capitalists invest in what they feel is important. This is subjective and must be evaluated from the venture capitalist perspective. Some will base their investment choices on profitability and others will base it on a desire to see a social need be met. Almost no venture capitalist will tell you straight out what they are looking for. Sometimes this is because they do not know, but they know it when they see it and other times they do not tell you because they don’t want hundreds of people coming to them with the same idea. A venture capitalist looks for diverse opportunities.
No matter which venture capitalist you are courting to secure funding for your business, you want to display experience. You don’t have to be an old guy to display experience. If you’re 20 years old and know the industry you may be funded. The venture capitalist can always require you get a manager who can handle many business aspects but he can’t always find another person with your unique knowledge of the product.
Display an ability to work as a team and be able to show the qualifications of your team. Be open to adding a new person if the venture capitalist wants more say in the management of his or her money.
Be able to convey who your customers are or who they will be. Tell the capitalist why these customers choose your service or your product.
Have a quality business model developed. The venture capitalist will want to know that you understand where the revenue is coming from and how long it will take to recoup his investment.

Filed Under: Businesses, Investors Tagged With: Business, Investment, Venture capital

Inviting Investors Is Always Better Than Taking Loans In A Recession Hit Economy

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Negotiating with investors can be a make or break transaction for businesses affected by the recession. Investors provide much needed infusion of capital into the business. You may have sufficient skill and confidence in abilities to run the business even during the recession. However, good intentions will get translated into real benefits only if you have sufficient cash to implement your plans.

This is where investors enter the picture. Contrary to popular perception, investors are more than willing to invest in promising businesses even during a recession. Economists point out that recession is a good time for inefficient businesses to be thrown out of the system. In such a scenario, if you can convince an investor that you are viable option, you can easily survive the recession and grow despite the same.

Negotiating with investors is an inevitable task if you are seeking external funding. The biggest advantage of seeking money from investors is that you do not have to increase your debt burden to unsustainable levels. Rather, you will be selling a stake in your business and this is always a beneficial option.

A person who has invested money in the business and has purchased a stake will not focus on short term profit or interest payments alone. Rather, emphasis would be on overall sustainability of the business. On the other hand, opting for commercial borrowings or loans from big banks can backfire. They will be interested in securing their investment and would not bother about anything else. This can work as an obstacle for your plans in the long run.

Negotiating with investor is something more than promising the moon and using nice words that have very little real meaning. You should help them feel confident about your abilities. You should have a specific plan that will help you achieve your final goal-providing fantastic returns on the investment.

Filed Under: Businesses, Investors, Partners Tagged With: Business, Entrepreneur, Financial Services, Guides, Investing, Investment, Investor, Recession