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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Earn Out
A contractual provision that allows an owner to earn additional money after the sale of a business if certain conditions are met. See Post Closing Adjustments.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A company's earnings before the deduction of interest expense, taxes, depreciation and amortization (or revenues less cost of goods sold and selling, general and administrative expenses) determined in accordance with GAAP. EDITDA is often used as an approximation of operating cash flow. Companies are often valued based on some multiple of EBITDA. Related measures include EBIAT, EBIT, EBITD and EBT.
Earnings Growth Rate
The percentage of annual increase in earnings.
Earnings Per Share (EPS)
EPS is a company's Net Income, divided by its number of outstanding shares.
Economies of Scale
A decrease in the marginal cost of production due to the increased size or scale of a company's operations.
Enterprise Value
The total capitalized value of a company consisting of its total debt and total equity value.
Equity
Different perspectives include: (1) a company's residual economic ownership after the claims of all creditors have been satisfied ( owned by its equity shareholders which include common and preferred stockholders); (2) the company's net worth or stockholders' equity is the difference between its assets and liabilities; and (3) the total value of all classes of a company's common and preferred stock.
Estate Tax
A federal or state tax imposed on an individual's assets at death.
Event of Default
The failure of a company to satisfy its contractual agreements and covenants in loan agreements or mezzanine securities documents. Common events of default include failure to pay principal, interest, or dividends when due; violation of the company's representations, warranties, or covenants; or becoming insolvent.
Exercise Price
The exercise or strike price is the amount that must be paid by a security holder in order to convert a convertible security. The exercise price can be nominal ($.001) or significant, and frequently relates to the purchase price of another security purchased in the same offering or at the same time.
Exit Strategies
Strategies by which a company's security holders hope to achieve liquidity. Private companies liquefy their shareholders' investments by selling the company, undertaking an initial public offering or redeeming the stock. Registration rights require a company to facilitate the sale of restricted securities after the company goes public. Put rights permit investors to cause a company, either private or public, to redeem the investors' securities.
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