How do you evaluate a business development company?

How do you evaluate a business development company?

Tangible book value growth is the best way to gauge a BDC’s performance, from a shareholder value perspective. Shareholders equity is assets minus liabilities. Book value is shareholders equity expressed on a per-share basis.

What does a business development firm do?

A business development company (BDC) is a type of closed-end fund that makes investments in developing and financially distressed firms. Many BDCs are publicly traded and are open to retail investors.

Is a BDC a 40 Act fund?

BDCs are closed-end investment companies; however, BDCs are exempt from many of the regulatory constraints imposed by the Investment Company Act of 1940, as amended (the “1940 Act”), and the rules thereunder.

How are business development companies regulated?

BDCs’ offerings of shares are registered with the SEC, and BDCs are regulated by the SEC. BDCs’ investment managers may be investment advisers that are registered with the SEC.

How does a BDC make money?

Most BDCs make money investing in companies via debt financing (buying bonds and providing loans) to a company. If they hold stock in the companies they invest in, the BDCs profit if the stock price (or net asset value) increases. BDCs also make money by investing in senior secured bonds and loans.

Are BDC dividends qualified?

Dividends paid by tax-exempt corporations or trusts such as Business Development Corporations (BDCs), Master Limited Partnerships (MLPs), Limited Liability Corporations (LLCs), or Real Estate Investment Trusts (REITs) are considered non-qualified, and may be taxed at ordinary rates.

Is Orcc a BDC?

Owl Rock Capital Corporation (NYSE: ORCC) is a publicly traded BDC on the New York Stock Exchange. To learn more, please visit ORCC’s website.

How do you accelerate business growth?

9 Ways to Accelerate Your Business Growth in 2019

  1. Streamline Your Operations.
  2. Expand List of Products or Services Offered—Slowly.
  3. Update or Replace Your Equipment.
  4. Start a Customer Loyalty Program.
  5. Expand Your Target Market.
  6. Improve Your SEO.
  7. Cut Costs.
  8. Expect the Unexpected.

What are the types of business growth?

4 types of business growth include organic, strategic, internal, and lastly- acquisition, merger, or partnership. 4 strategies include product development, market development, diversification, and market penetration.

What is the difference between BD and sales?

In sales development, the focus is on what the customer or client can buy from the company immediately and what the company can deliver immediately. With business development, professionals develop relationships to give the company new audiences to sell to in the future.