Founded in 1992 by senior executives with entrepreneurial, line operating, and bulge bracket investment banking experience.
During the month of March 2010, Avalon, as the sole placement agent, raised Frederick's of Hollywood Group Inc. $3mm in common stock and warrants.
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Deal Structure
The manner in which a transaction is structured, with examples including an Asset Purchase or a Stock Purchase.
Debt
Debt, also referred to as a liability, is an amount owed by someone (the debtor) to another (the creditor). Common forms of debt securities are notes or bonds. If the debt is not secured by collateral it is unsecured debt, if it is secured by collateral the debt is referred to as secured debt. (See Subordinated Debt.)
Debt Ratios
Financial ratios used to indicate the extent debt is being used by a company as a source of capital. Examples include, Debt to Equity, debt to total assets, and fixed charge coverage. Debt ratios are typically important to lenders. A high ratio indicates higher debt levels that may allow higher equity returns but often means higher risks.
Debt to Equity Ratio
An indicator of Financial Leverage or how much debt a company has in relation to Stockholders' Equity. Derived by dividing long-term debt by Stockholders' Equity.
Deferred Annuity
A series of regular consecutive payments of equal amount that begins at some time period in the future.
Demand Registration Rights
An investor's contractual right to demand that the issuer register specified restricted securities with the SEC and the state securities agencies so that the restricted securities become registered and freely tradable. Demand registration rights force a company to file a registration statement permitting the holder to conduct a public offering of the holder's securities. Generally, demand registration rights are available only after a company's initial public offering to facilitate the sale of restricted securities that cannot otherwise be sold without registration.
Dilution
Dilution from an accounting perspective is the net difference between the purchase price per share paid by a new investor to buy a security from the company and the tangible book value per share of the company prior to the offering. Dilution from an investor perspective is the change to an investor's percentage ownership in a company that results from a subsequent issuance of additional equity securities.
Directors
See Board of Directors.
Discount Rate
The rate used to determine the present value of a stream of future cash flows. The discount rate is calculated based on the Required Rate of Return after taking into account the riskiness and timing of the future cash flows.
Discretionary Items
These are generally items paid to owners of a business which may not be viewed required by another owner.
Dividend
The earnings a company distributes to its stockholders, either in cash or stock. Dividends to preferred stockholders, calculated at a contractually agreed rate, may be paid currently or may accumulate (See Accumulated Dividend).
Double Taxation
Taxation of profits at both the corporate and the stockholder level. The corporation is taxed on its income and stockholders are taxed on dividends paid by the corporation.
Drag Along Rights
The right of a security holder to force another security holder to sell his/her stock (usually in connection with a sale of the company), provided that the person being dragged receives the same price, terms, and conditions for the security being sold as the person exercising the drag along rights. By allowing the elimination of minority investors, drag along rights facilitate the ability to sell 100 percent of a company's securities. Drag along rights are eliminated in connection with an initial public offering.
Due Diligence
The responsibility of entities or individuals involved in a securities offering to investigate the information in the offering memorandum or prospectus to provide a reasonable basis for believing that the information contained is true and that the offering documents do not omit to state a material fact. Acquisitions are often contingent upon the satisfactory completion of the due diligence process.
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