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Factoring

A procedure in which a firm can sell its accounts receivable invoices to a factoring firm, which pays a percentage of the invoices immediately, and the remainder (minus a service fee) when the accounts receivable are actually paid off by the firm’s customers.

Final Exit Date

The date and underlying holding has been sold or fully realized.

Final Regulation

An ERISA term, it is the United States Department of Labor’s Final Regulation  relating to the definition of “plan assets” in (29 C.F.R. §2510.3-101).

Financings and Investments

Each transaction involving a private equity fund or funds in a given portfolio company represents one round of financing. Each financing is made up of one or more investments, depending on the presence of co-investors. Financings are also known as deals.

Finder

A person who helps to arrange a transaction.

First Close

An early close of part of a round financing upon the agreement of all parties. This is often used as part of a “Rolling closing” strategy.

First Refusal Rights

A negotiated obligation of the company or existing investors to offer shares to the company or other existing investors at fair market value or a previously negotiated price, prior to selling shares to new investors.

First-time Financing

See: New Investment

Flipping

The act of buying shares in an IPO and selling them immediately for a profit.  Brokerage firms underwriting new stock issues tend to discourage flipping, and will often try to allocate shares to investors who intend to hold on to the shares for some time. However, the temptation to flip a new issue once it [...]

Flotation

When a firm’s shares start trading on a formal stock exchange, such as the NASDAQ or the NYSE. This is probably the most profitable exit route for entrepreneurs and their financial backers.

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