The Private Equity Market Governance

The event was followed by a steady evolution for twenty years, but no relation to the recent explosion. This momentum is the result of a combination of several positive key factors. The first of these is an abundance of liquidity in financial markets. Attracted by high yields (15-16% on average), liquidity providers (banks and insurance institutions, pension funds and private wealth) do not hesitate to fill the capital market allows investors to raise funds more increasingly important. Direct consequence, the number of LBOs has increased but more importantly, the number of very large transactions (over one billion Euros) also increased from 23 in 2006 in France. SMEs are no longer the only target of LBO financing transactions, large groups with a strong interest in the funds management, particularly in terms of activity. So after the frenzy of acquisitions recorded in recent years, these groups now intends to liquidate their related activities generate higher margins.

Then, the low cost of debt, due to low interest rates, gives montages leveraged a significant advantage over other types of acquisition financing transactions. They are based mainly on debt financing of target companies, the current environment when they are particularly favorable to more easily identify a margin between the cost of debt and the return on assets under management. However, this cannot alone suffice to explain the strong growth in activity. Private equity has above all recognition in the governance model in place in companies come under LBO financing. These companies are generally better managed and better valued, and even if some failures can be reported (ten more than 200 annual operations in France), we must recognize that the default rate of the sector is quite low and few are examples of clashes in the area of corporate governance.

Governance is indeed one of the key parameters of a company came under LBO financing. To repay debt must quickly generate cash flow. However, it is recognized that improving the economic value of a target company depends, in large part by the optimization model that will be applied. Therefore, LBO funds agree, from acquisition, to establish a mode of corporate governance more efficient and take the form of a greater focus, accountability of management (generally a shareholder as a result of the operation) and optimization of financial assets.

How To Prevent Identity Theft

Hello friends! Hope you all doing good Now, I am going to share you all information about the identity theft. As a matter of fact, I have enlightened about this very subject through by means of an article found in an online site at moneybusinessexpert.com. The Identity theft is the major threat that most of us may experience the pain of its fatal trap. This is easily avoidable, if you follow some Steps to Prevent Identity Theft and if we practice some simple precautions while using our credit cards. We must remain a follow up of our credit information on usual basis. Credit bureau makes available its client with credit report every year. So get benefit this flair and ensure our account on standard basis. On doing this, we can be clear in our mind that for fear that someone attempt to embezzle our identity, we would be capable to mark it at very near the beginning period. We have got also to save from harm our social security numbers. If you take some precaution then you may save your money and business. To stay behind out of harm's way, we have not to take documents on the subject of it contained by your folder. Memorizing the number will definitely solve this problem. You must as well make in no doubt that it is not written on some piece of paper which possibly will be simply available by others. Hope this information will remain useful for most of you! Thanks!!

The cross-selling and the customer loyalty

Faced with increased competition, banks and insurance companies must continually strengthen relationships with their customers. While 1 / 3 of the people have accounts in several banks, the challenge is to become the main bank or insurance client.

One way to be the leader is to increase the rate of multi-ownership: the interest is to provide diversified products to the customer to capture it while ensuring sufficient profitability during its life cycle. That is to increase revenue per customer (cheaper than acquiring new customers) by increasing the products held by clients and services sold.

The transformation of the sector as the penetration of bank assurance, the Finance assurance and banking-real estate agency promotes more cross-selling. Through tailor-made pricing, offers and services can be complementary and beneficial to customers who already own one or more products and thus meet all their needs (offer a discount on the purchase of a coupled auto and home insurance or credit coupled with car insurance, etc ...)

The additional sales are based on an understanding of the client, and updated as and when relationships are maintained. They depend on the life of the client's potential risk (credit risk) and value ("life time value"). The option to develop the relationship with customers most willing to deepen and extend this relationship is vital.

To stimulate the use and income of customers, relationship marketing must move towards a proactive logic by exploiting business opportunities with specific offers that will be triggered through key moments in the client's life: a real estate purchase, a change of vehicle a termination, etc.... These can be transmitted to the client, on the one hand, in "push" or direct marketing (e.g. on the web, it displays the customer area of the loan amount for which he is eligible, without having make any loan application), and second, in "pull" or sales rebound as enjoy a call from the client to provide a product or service selected by the system depending on its characteristics.

Customer knowledge will know what, how (on promotion campaign outgoing, etc.) and where to propose an offer. Thus, to develop, preserve and consolidate a position in a segment of customers, banks and insurance companies must be able to perform analytical work on the one hand, with qualitative studies to analyze customer needs and thus tailor products, services and associated discourses (e.g. the Net Promoter Score), and secondly, by building the individual marks for customer, quantitative studies, in:

* Potential and customer value ("life time value")
* Association (associated with mortgage insurance)
* Appetizing generic tenders / attrition (technical scoring)
* Segmentation behavioral, relational, or 360 ° C (type of clients)
* Financial risk (estimated probabilities of default, the outstanding event of default and loss associated)
* Textual analysis of the mail client
Ultimately, the challenge is to build a vision aggregate client level and thus part of a multi-logic products to promote adhesion of the client and / or from home to expand the panel of cross-selling .

The importance counterparty risk Part-3

Identify the characteristics of the third party repository brings out the different types of people (customers, prospects, guarantees ...), information (customer classification, signs of third party monitoring bodies ...), for which the required quality levels are not necessarily the same. Two examples: the rate of duplication, including the reduction can improve the consolidation process and risk capital allocation, the rate of third parties not identified as an affiliate of the bank, resulting in poor consolidation risk on intra banking group.

As part of the approval process with Basel 2 instances of trust, quality indicators should focus mainly on:

    * The validity of the SI risk management
    * The performance score of grant, the organization of the rating systems and delegation
    * Compliance with the risk strategy in terms of authorization and action limits

These include examples of indicators as the rate of customer doubtful with a healthy note, the rate of third unrated or with a note too old, or the rate of others rated their group.

To control effectively the quality of each indicator, it is essential to have previously defined a responsible business and responsible SI (the MOA) on each of the data information system. The process of defining indicators is iterative, since the priorities may change based on improvements. To control them properly, it is preferable to retain only 10 in the first place. The dashboard can be enriched progressively as the process will be better understood by employees and more mature. For an effective control, must not exceed twenty indicators, which requires the definition of arbitration process indicators to be adopted.

Once the dashboard as defined with the various indicators chosen, it must be operated and monitored on a recurring basis. Identified as significant variables of a state, the indicators need to restore an image quality of the management of risks by focusing on the area’s most sensitive to the context and business goals. As a minimum, an annual review to define the quality policy to hold, but the quality is a daily challenge; do not forget to make some adjustments over the water...

The importance counterparty risk Part-2

In the long run, it is best to think of more sustainable solutions and, in this regard, the levers are very diverse appointment of quality managers in the contributing entities, workflow validation of customer data, standardization of concepts, comparisons with external sources, management of several criteria of uniqueness. The possible solutions are many but their cost, period of implementation and impact on data quality is variable. However, the prioritization of these actions is often subjective: some effects more "visible" are given priority while others are ignored because their quality impacts are unknown.

The success of the business plan requires a continuous improvement in performance. It should be laid down in processes that involve the third party repository, a real cornerstone of the IF bank. Based on the quality approaches used in industry, the virtuous cycle is divided into five phases: definition of indicators and quality objectives of the standard, indicators measuring, analyzing results, identifying actions to improve the quality control of the effect of implemented solutions. We propose in this article, to limit ourselves to the first two phases that we consider most important.
The definition of indicators based on the combination of an empirical, research-based elements of non-quality in the device in place, and a theoretical approach, having as a starting point to identify key parameters management customer risk:
To invest in the improvement actions that correct the non-quality aspects of the most sensitive, the first step is to build a balanced scorecard indicators are most representative. It is an indispensable asset to the achievement of a critical diagnosis and appropriate vis-à-vis business strategies (risk, marketing, sales ...) defined. While some indicators can be retained only for statistical purposes, the others must be action-oriented: this means they must be involved in a lens quality (which will result in the definition of alert thresholds or levels of expected results ...) and an action plan to achieve the objective. The role of each business management and / or SI concerned to arrive at the expected level of quality must be so in a charter previously defined: it is one of the key success factors of the process.