Entrepreneurial Finance, 5th Edition

  • J. Chris Leach University of Colorado at Boulder
  • Ronald W. Melicher University of Colorado at Boulder
  • ISBN-10: 1285425758  |  ISBN-13: 9781285425757
  • 752 Pages
  • Previous Editions: 2012, 2009, 2006
  • © 2015 | Published
  • List Price = $ 319.95
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This accessible, reader-friendly text guides you through a complete "life cycle of the firm" as it introduces the theories, knowledge, and corporate finance tools and techniques an entrepreneur needs to start, build, and eventually harvest a successful venture. With a strong emphasis on sound financial management practices, the text explores important issues entrepreneurs face, including how and where to obtain financing, using business cash flow models, and positioning the early-stage company strategically. You will also gain an understanding of how to interact effectively with financial institutions and regulatory agencies that can affect venture growth and enable liquidity for investors. Drawing on real-life entrepreneurial ventures and common financial scenarios, the authors include an in-depth capstone case, numerous mini-cases, and abundant examples to engage your interest and vividly illustrate key concepts such as venture capital funds, institutional investors, strategic alliances, the role of business angels, licensing agreements, and exit strategies. Trust ENTREPRENEURIAL FINANCE, Fifth Edition, to provide the skills and confidence you need for entrepreneurial success in today's markets.

Features and Benefits

  • THREE CAPSTONE CASES PROVIDE OPPORTUNITIES FOR STUDENTS TO SYNTHESIZE ESSENTIAL IDEAS. In addition to thorough coverage of essential concepts and engaging, real-world examples to bring them to life, the text includes three in-depth capstone cases to provide students with an invaluable opportunity to integrate and apply the numerous concepts they have explored.
  • WEALTH OF END-OF-CHAPTER MATERIALS PROVIDES SIGNIFICANT OPPORTUNITIES TO APPLY CONCEPTS. Each chapter concludes with a variety of learning features to help students review and apply the material, assess their understanding, and identify any areas in need of additional attention. Highlights include Chapter Summaries, Key Terms, Discussion Questions, Internet Activities, Exercises and Problems, Supplemental Exercises, and Mini Cases.
  • ENGAGING, CONVERSATIONAL STYLE MAKES THE TEXT REMARKABLY READER-FRIENDLY. The authors' conversational, reader-friendly tone and straightforward explanations make even complex concepts easier to understand, apply, and retain.
  • TIME-SAVING INSTRUCTOR MATERIALS MAKE CLASS PREPARATION EASIER AND MORE EFFECTIVE. A robust text companion website includes a variety of resources to help enhance your teaching experience and reduce preparation time. The dynamic author-written Instructor's Manual includes answers to end-of-chapter questions and problems, while an extensive Test Bank provides proven true-false and multiple-choice questions, as well as short test problems. Microsoft® PowerPoint® lecture slides are available to aid with lecture planning and classroom activities, while supplementary Excel® spreadsheet models allow students to complete exercises linked to specific text chapters.

Table of Contents

1. Introduction to Finance for Entrepreneurs.
2. Developing the Business Idea.
3. Organizing and Financing a New Venture.
4. Preparing and Using Financial Statements.
5. Evaluating Operating and Financial Performance.
6. Managing Cash Flow.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations When Obtaining Venture Financing.
9. Projecting Financial Statements.
10. Valuing Early-Stage Ventures.
11. Venture Capital Valuation Methods.
12. Professional Venture Capital.
13. Other Financing Alternatives.
14. Security Structures and Determining Enterprise Values.
15. Harvesting the Business Venture Investment.
16. Financially Troubled Ventures: Turnaround Opportunities?
Case 1. Eco-Products, Inc.
Case 2. Coral Systems, Inc.
Case 3. Spatial Technology, Inc.

What's New

  • CURRENT, UP-TO-THE-MINUTE COVERAGE HELPS YOU ADDRESS TODAY'S MOST RECENT FINANCIAL DEVELOPMENTS. The Fifth Edition includes some of the most current information on economic and business developments that are influencing the way successful entrepreneurs fund, launch, grow, and harvest ventures today.
  • UPDATED "FROM THE HEADLINES" FEATURE HIGHLIGHTS INTRIGUING ENTREPRENEURIAL VENTURES. Each chapter includes special features that demonstrate practical applications of key concepts through stories and examples highlighting real entrepreneurial ventures. Corresponding new "Discussion Questions" conclude each chapter to help students review chapter material and further explore important concepts.
  • UPDATED PERSONAL AND CORPORATE INCOME TAX INFORMATION AS IT RELATES TO ORGANIZING AND FINANCING A NEW VENTURE. This chapter also includes recent changes in how the patent system operates.
  • NEW SEPARATE CHAPTERS ON SHORT-TERM AND LONG-TERM FINANCIAL PLANNING. Chapter 6 (Managing Cash Flow) now focuses only on short-term financial statement projections and recognizes the need to generate, or plan for obtaining, sufficient cash flow to survive. Chapter 9 (Projecting Financial Statements) focuses on long-term financial statement projections in order to anticipate additional financing needs and to provide insights into possible value creation.
  • PEDAGOGICAL DESCRIPTIONS BEFORE EACH EXERCISE OFFER STUDENTS VALUABLE GUIDANCE. End-of-chapter exercise and problems are preceded by brief, italicized descriptions that point out the main idea and/or relevant chapter content. In addition, all problems and mini-cases throughout the Fifth Edition reflect contemporary dates and timelines.
  • NEW AND UPDATED INFORMATON ON KEY TOPICS, TOOLS, AND TECHNIQUES THAT TODAY'S ENTREPRENEURS NEED TO SUCCEED. The current edition includes additional detail and revised material on key topics such as "clean tech," "clean energy," environmentally friendly products, cash burn, sustainable sales growth rates, free cash flow valuation methods, the enterprise method of valuing ventures with complex capital structures, employee stock ownership plans (ESOPs), and more.

Meet the Author

Author Bio

J. Chris Leach

J. Chris Leach is professor of finance and the Robert H. and Beverly A. Deming Professor in Entrepreneurship at the Leeds School of Business at the University of Colorado at Boulder. He received a finance Ph.D. from Cornell University, began his teaching career at the Wharton School, and has served as a visiting professor at Carnegie Mellon, the Indian School of Business, and the Stockholm Institute for Financial Research. Dr. Leach's teaching experience includes courses for undergraduates, MBA students, executives, and Ph.D. students. He has been recognized as Graduate Professor of the Year and has received an award for MBA Teaching Excellence. His research on a variety of topics has been published in The Review of Financial Studies, Journal of Business, and Journal of Financial and Quantitative Analysis, among others. Dr. Leach's business background includes various startups dating back to the 1970s. More recently, he served as chairman of a New Mexico startup and, as an investor and advisor, participated in a late 1990s Silicon Valley startup that subsequently was merged into a public company. His consulting activities include business plan advising, valuation, and deal structure for early stage and small businesses.

Ronald W. Melicher

Ronald W. Melicher is professor of finance and chair of the Finance Division at the Leeds School of Business at the University of Colorado at Boulder. He earned his undergraduate, MBA, and Ph.D. degrees from Washington University in St. Louis. At the University of Colorado, he has received several distinguished teaching awards and was designated as a university-wide President's Teaching Scholar. Dr. Melicher also has held the William H. Baugh Distinguished Scholar faculty position, served two terms as chair of the Finance Division, served as the faculty director of the Boulder Campus MBA Program, and was the academic chair of the three-campus executive MBA program. Dr. Melicher teaches corporate finance and financial strategy in the MBA and executive MBA programs and investment banking to undergraduate students. While on sabbatical from the University of Colorado, Dr. Melicher has taught at the INSEAD Graduate School of Business in Fontainebleau, France, and at the University of Zurich in Zurich, Switzerland. He has presented expert witness testimony on the cost of capital in regulatory proceedings and has provided consulting expertise in the areas of financial management and firm valuation. Dr. Melicher has published articles in the Journal of Finance, Journal of Financial and Quantitative Analysis, and Financial Management.