investment horizon Buyouts Buyouts are forms of corporate finance used to change the ownership or the type of ownership of a company through a variety of means. Once the company is private and freed from some of the regulatory and other burdens of being a public company, the central goal of buyout is to discover means to build this value*. This may include refocusing the mission of the company, selling off non-core assets, freshening product lines, streamlining processes and replacing existing management. Companies with steady, large cash flows, established brands and moderated growth are typical targets of buyouts. There are several variations of buyouts: Leveraged buyout (LBO): a combination of debt and equity financing. The intention is to unlock hidden value through the addition of substantial amounts of debt to the balance sheet of the company. Management buyout (MBO), Management buy in (MBI) and Buy in management buyout (BIMBO): private equity becomes the sponsor of a management team that has identified a business opportunity with a price well above the team's wealth. The difference is in the position of the purchaser: the management is already working for the company (MBO), the management is new (MBI) or a combination (BIMBO). Buy and built (B&B): the acquisition of several small companies with the objective of creating a leader (highly fragmented sectors such as supermarkets, gyms, schools, private hospitals). Recaps: re-leveraging of a company that has repaid much of its LBO debt. Secondary Buyout (SBO): sale of LBO-company to another private equity firm. Public-to-private (P2P, PTOP): takeover of public company that has been 'punished' by the market, i.e. its price does not reflect the true value. Major entrepreneurial financial planning Importance Financial planning allows entrepreneurs to estimate the quantity and the timing of money needed to start their venture and keep it running. The key questions for an Entrepreneur are: Is it worthy to invest time and money in this business? What is the cash burn rate? How to minimize dilution by external investors? Scenario analysis and contingency plan? A start-up's chief financial officer (CFO) assumes the key role of entrepreneurial financial planning. In contrast to established companies, the start-up CFO takes a more strategic role and focuses on milestones with given cash resources, changes in valuation depending on their fulfilment, risks of not meeting milestones and potential outcomes and alternative strategies. Determination of the financial need of a start-up The first step