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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Fair Market Value
The price that a willing buyer will pay a willing seller for an asset. The fair market value of a company generally assumes the value of the company as an ongoing business.
Financial Disclosure
The financial information a company presents to outside parties.
Financial Leverage
The use of debt to increase the expected Return on Equity.
Financial Ratios
The result of dividing one financial statement item by another. Ratios are used to help interpret financial statements by focusing on specific relationships.
Financing Contingencies
Usually a buyer's right to avoid closing a transaction due to the inability to obtain financing.
First In, First Out Inventory Method (FIFO)
An accounting method for valuing the Cost of Goods Sold which assumes the oldest item in inventory is used first. Generally, if the cost of acquiring inventory is rising, companies using FIFO will report lower Cost of Goods Sold and therefore higher gross profit. See LIFO for an alternative method.
Fixed Costs
Expenses that are fixed for a given period of time or do not directly vary with production levels such as rent and management salaries.
Flipping
The sale of a security or a company shortly after its purchase. In a securities offering this may lead to downward pressure on the stock price.
Float
The difference between the cash balance recorded on the company's books and the amount credited to the company by the bank. Also see Public Float.
Founders
The individuals who started a company.
Free Cash Flow
Generally, the cash available to distribution to a company's investors or lenders (equity and debt), defined as net income from operations plus non-cash charges (such as depreciation) plus or minus the cash used by or freed by the business as indicated in balance sheet changes (such as capital expenditures and increases in working capital).
Full Ratchet Antidilution
A contractual downward adjustment in the conversion price (or exercise price) of a convertible security that is often based on either performance or a later investment in the company at a lower price per share. Based on this clause, during the applicable period, if any subsequent security of the issuer is sold at a lower price regardless of the amount sold, (other stock sold pursuant to an employee option plan), the conversion price of the convertible security is reduced to that exact price.
Fully Diluted
A company's fully diluted shares assumes the company's issued and outstanding common stock are increased by the exercise of all potential options and warrants and the conversion of all of its convertible securities.
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