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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Valuation
A comprehensive financial and operational review that focuses on pricing a business in anticipation of a sale or other reason. See Appraisal.
Value-added tax (VAT)
Method of indirect taxation whereby a tax is levied at each stage of production on the value added at that specific stage. Most commonly levied in Europe.
Variable Costs
Costs that change as a direct result of a change in production volume.
Venture Capital
Risk equity investing, generally in private equities of private companies, with a goal of achieving above-average long-term investment returns that compensate for the investment risk. Venture capital includes investments in startups, expansion-stage companies, and emerging growth companies. Venture capital investments are structured so that liquidity can be achieved, usually within three to seven years.
Vesting
The rate at which options granted under a stock option plan become exercisable by the option holder. Most stock option plans provide that options vest (and therefore become exercisable by the option holder) over a period of years so that the company gets the benefit of extended employment and performance from the option holder. A common pattern is for options to vest in equal percentages over three to five years, usually on the anniversary date of the option grant. If the option holder's relationship with the company ceases, then the option holder forfeits the options that have not yet become vested.
Volatility
The degree of price fluctuation for a given asset, rate, or index.
Waiver
The voluntary process by which investors relinquish a contractual right (such as a covenant), usually by affirmative vote of at least a majority of the affected investors. The effect of granting a waiver is either that the issuer is not in breach of a contractual obligation or that the issuer can take an action that would otherwise be contractually prohibited.
Warrant
The right (but not the obligation) to acquire common stock during a specified period by paying an agreed amount of money. The exercise price of a warrant can be nominal ($.001) or significant.
Weighted Average
A form of antidilution protection that adjusts the conversion price or the amount of securities into which a convertible security converts when a subsequent offering of securities (common stock or preferred stock) is made at a lower price. Unlike full ratchet antidilution provisions, the weighted average price protection is affected by the size or amount of the subsequent issuance to reflect the actual adverse impact incurred by the security holder. The conversion price is reduced by applying a complicated formula based on the shares outstanding prior to the new issue of securities and the current conversion price, and the amount of money received by the issuer divided by the number of fully diluted shares of common stock outstanding after the new issue.
Weighted Average Cost of Capital (WACC)
The Required Rate of Return that must be paid or received by all of the investors with respect to a company's securities. Used as a hurdle rate for capital. The relative proportions of equity and debt in a company's capital structure determine the weightings.
White Knight
A friendly potential acquirer sought out by a target company that is threatened by a less welcome suitor.
Working Capital Management
The management of Current Assets and Current Liabilities to maximize short-term liquidity.
Yield
The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.
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