Eitan Eldar - public company https://www.eitan-eldar.net/tag/public-company/ UK Real Estate - Information and Data Mon, 23 Dec 2019 09:02:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://www.eitan-eldar.net/wp-content/uploads/2019/12/cropped-400_5b1662af5249f-32x32.png Eitan Eldar - public company https://www.eitan-eldar.net/tag/public-company/ 32 32 What Covenants the Bank Requires in a Loan? https://www.eitan-eldar.net/articles/what-covenants-the-bank-requires-in-a-loan/ https://www.eitan-eldar.net/articles/what-covenants-the-bank-requires-in-a-loan/#respond Wed, 12 Nov 2014 08:18:10 +0000 https://www.eitan-eldar.net/?p=48 When a businessman wants to become the controlling shareholder of a public company to acquire 51 percent control of it, he usually asks for a loan from the bank. Eitan Eldar says that the amount of the loan depends on the equity of the purchaser. In this situation, the bank would like covenants. These covenants ... Read more

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]]> When a businessman wants to become the controlling shareholder of a public company to acquire 51 percent control of it, he usually asks for a loan from the bank. Eitan Eldar says that the amount of the loan depends on the equity of the purchaser.

In this situation, the bank would like covenants. These covenants are certain conditions in the loan agreement guaranteeing the loan funds will be returned to the bank at the end of the process. The purpose behind the conditions is to keep the buyer so that he could return the money loaned from the bank.

These are actually financial standards that include some limitations, such as maintaining the the amount of personal capital. Once the purchaser does not meet the conditions, the loan will be immediately due and payable.

Eitan Eldar emphasizes that the bank and the buyer are not related to the company. The entity that has a relationship with the bank is the only buyer. The company can continue its current operations as usual.

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]]> https://www.eitan-eldar.net/articles/what-covenants-the-bank-requires-in-a-loan/feed/ 0 Acquire a Shelf Company – 2 Advantages https://www.eitan-eldar.net/articles/acquire-a-shelf-company-2-advantages/ https://www.eitan-eldar.net/articles/acquire-a-shelf-company-2-advantages/#respond Wed, 24 Sep 2014 08:33:04 +0000 https://www.eitan-eldar.net/?p=60 A common phenomenon that indicates a peak period in the market, is trading a shelf company. It is characterized by acquistion of small stocks such as stockd of shelf companies. These companies have stopped their business activity for different reasons, buy their stocks are still traded in the market. Eitan Eldar says that these companies ... Read more

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]]> A common phenomenon that indicates a peak period in the market, is trading a shelf company. It is characterized by acquistion of small stocks such as stockd of shelf companies. These companies have stopped their business activity for different reasons, buy their stocks are still traded in the market. Eitan Eldar says that these companies can be acquired by a company or private people. Here are two advantages in purchasing a shelf company.

  • Becoming a public company – Private company that wants to become public can reduce the cost of public offering by purchasing a shelf company, merge with it and perform a reverse merger. The shelf company is almost empty of content and the purchasing company pours its content into it. Eitan Eldar adds that this is a way to increase the number of potentional investors.
  • Savings in the offering process – This process of acquiring a shelf company and pouring into it the new content, saves money in the offering of securities in comparison to initial public offering. It is also a cheap way.

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