Cord Blood Banking

Cord blood banking refers to the storage, public or private, of umbilical cord blood, which may be used to treat certain diseases of the blood and immune system. Once a baby has been born, he or she no longer needs the blood that remains in the umbilical cord. Until recently, that blood was disposed of, but now that we know it can save lives, cord blood banking has become an acceptable practice in the medical community.

Cord blood is rich in hematopoietic stem cells, which means this blood can form white or red blood cells, platelets, and plasma. While this is similar to the make-up of bone marrow, because cord blood transplants don’t require a perfect match the way bone marrow transplants do, it can be used in transplants in much the same way bone marrow is; only with less chance of rejection. This means that more people can benefit from these transplants in a shorter time span instead of waiting years for a compatible donor.

Cord blood is collected immediately after the birth of the baby. If collected in-utero, it is collected after the baby is delivered but before the placenta has been delivered. Ex-utero cord blood collection refers to the collection of the umbilical cord blood after both the baby and the placenta has been delivered. There are no health risks associated with cord blood collection, either to the mother or the newborn.

Common methods of cord blood collection include inserting a syringe into the umbilical cord and drawing out the cord blood, or allowing the blood to drain into a sterile bag after the cord has been elevated. This procedure can be performed with either a vaginal delivery or Caesarean Section. However, it must be done immediately after the birth and processed within 24 48 hours.

This processing includes routine testing, including testing for HIV and Hepatitis B and C. The cord blood is then stored frozen, ready for use. While studies for expiration dates are still ongoing, the New York Blood Center’s National Cord Blood Program (NCBP) has used cord blood in transplants that has been stored up to 10 years with the same results as cord blood used in transplants right after processing. Thus, while we have passed the 10 year milestone, it may be some time before we know exactly how long frozen umbilical cord blood is viable for transplanting.

According to the NCBP, more than 70 different diseases have been treated with cord blood so far. These include different types of leukemia, Fanconi’s anemia, Hodgkin’s disease, sickle cell disease, lymphomas, and many others. Because cord blood is collected in advance, tested, and ready for use, it offers several advantages over a bone marrow transplant, in addition to the fact that cord blood recipients don’t have to be a perfect match the way bone marrow recipients do.

There are both public and private cord blood banks. Public cord blood banks store cord blood for the benefit of the general public while private cord blood banks store umbilical cord blood for the benefit of the donor or his or her family. With a public cord blood bank, once all the testing is completed, all traces of the donor are eliminated, so there is no chance for anyone to request or receive a particular donor’s cord blood.

Public cord blood banks are not-for-profit and donors pay no storage fees while private cord blood banks charge storage fees, as well as processing and collection fees. However, it is worth it to those who choose to go this route as they are assured of a perfect match should their baby need a transplant later on. It is certainly a viable option for those who have a baby with a transplantable condition or who may be at a high risk for such a condition.

U.OL Defining Commercial Banking

Commercial banking” was defined in the previous edition of this book as the activity of a banking institution whose “principal business is to accept deposits, make loans, collect commercial paper, and arrange the transfer of funds.” Under the banking law from the adoption of the Glass-Steagall Act in the 1930s until the beginning of the 1980s, there was a distinct demarcation between commercial banks and other financial institutions, such as investment banks, securities firms, and commercial financial services conglomerates.

AH this is changing. The types of institutions that can engage in traditional commercial banking functions have enlarged as a result of legislation giving additional powers to thrift institutions. The types of activities commercial banks engage in have expanded as a result of legislation at both the state and federal levels and as a result of judicial decisions dismantling parts of the wall erected by the Glass-Steagall Act to keep commercial banks insulated from the risks of dealing in securities. The “nonbank bank” explosion has started a restructuring of the banking market into holding companies capable of offering an array of financial services. In light of these developments, perhaps the most suitable definition is one offered by an English texi: “[B]anks come in all shapes and sizes, with different name tags applied indifferent countries, often quite loosely. Banks make most of their money from the difference between interest rates paid to depositors and charged to borrowers.” Commercial banks are “publicly quoted and profit oriented. They deal directly with the public, taking deposits, making loans and providing a range of financial services from foreign exchange to investment advice. Most countries have settled for between four and ten;” but in the United States there are nearly 15,000 because of “banking laws that have prevented banks operating in more than one state, and in different types of business,..

In addition to commercial banks, there are many specialized depository institutions that have been established to perform specialized roles. Thrift institutions such as savings and loan associations and credit unions are important examples. At their inception, savings and loan associations primarily engaged in home mortgage lending and offering passbook-type savings to consumers. With the enactment of the Depository Institutions Deregulation and Monetary Control Act of 1980, thrifts gained expanded authority to engage in commercial banking activities. Further incorporation into the general banking market has occurred as a result of the restructuring brought about by the financial failures and weakened condition of thrift institutions in the 1980s, which led to changes in the law to encourage the acquisition and merger of weak institutions with stronger financial institutions, including banks. To a great extent, thrift institutions are subject to a regulatory regime similar to that governing commercial banks, and engage in banking functions similar to those of commercial banks. Subsequent chapters discuss how thrifts fit into this regulatory scheme.

There are other specialized consumer-oriented financial companies. Credit unions may be organized under state and federal statutes with the power to maintain customer share accounts against which drafts may be drawn payable i n a manner similar to checks. There are also personal finance loan organizations authorized under the laws of the several states that loan small amounts of money to consumers, often at specially regulated rates that are higher than the usual interest rates allowed. These organizations normally are not deposit-taking institutions but operate with their own capital and credit. Banks often have their own small loan departments to make the same type of loans, and holding companies may have special consumer loan subsidiaries or affiliate companies.

Although trust activities have become a part of the activity of many commercial banks,1 this book does not deal with the laws that govern these trustee relationships and activities. The competition for funds has led some banks to offer managed investment accounts through their trust departments similar to those offered by mutual funds and other securities firms. Again, there are trust companies organized under state law that operate by accepting money for the purpose of investment where the beneficial interest in the funds remains in the original owner.

There are other types of banking functions and specialized banks: for example, reserve banks, which are really bankers’ banks; investment banks, whose chief business is underwriting and dealing in securities, and providing financial advice and aid in corporate acquisitions and mergers; agricultural banks; foreign trade banks; and other specialized banks that have charters to engage in particular types of business. Further, the peculiarities of federal laws regulating bank holding companies have encouraged the proliferation of various financial institutions that have been chartered as full-service banks but that limit their functions to activities such as consumer lending and credit card operations.

Because of the diversity of functions of commercial banks and the variety of depository institutions involved in them, this book does not attempt a comprehensive survey of all banking activity. Rather, it emphasizes the basic regulatory structure that governs traditional commercial banking institutions and the commercial activities associated with accepting deposits, collecting commercial paper, making payments and transferring funds, and engaging in certain credit transactions.

As this introduction indicates, the laws and regulations that govern commercial banking are numerous and complex. The various types of financial institutions engaging in commercial banking activities are matched by an equal activities. The Depository Institutions Deregulation and Monetary Control Act of 1980 also gave thrift institutions chartered by the Federal Home Loan Bank Board the authority to engage in trust activities under certain conditions. 12 USC 1464(n) (1982).

In addition, the law governing the transactions of commercial banks is complex. The Uniform Commercial Code has brought a desirable uniformity to the law in many areas, but there are many special purpose statutes, frequently intended to give special consumer protection, that must be taken into account in analyzing banking transactions. There is a growing body of federal law that must be considered along with the state commercial law of the UCC and common law. This book is intended to serve as a beginning guide for the bank officer engaged in these commercial banking transactions and the attorneys called upon to advise in banking matters. It is not a substitute for careful legal counsel, however, and such assistance should be obtained because this book can neither cover all the details applicable in particular matters, especially at the regulatory level, nor report on all the local variations, changes, and new developments. Moreover, the facts of a particular situation will vary in ways that may introduce new legal problems or otherwise affect the legal analysis. Obtaining the advice of competent legal counsel is essential.

Banking Calories Eat Less Now To Pig Out Later

Suppose youre on a diet and you have a banquet or a holiday party coming up. Youre expecting a big meal to be served for dinner, and there will be open bar with lots and lots of party snacks. Youre not sure if there will be any healthy food there, but you are sure that youre going to be in a festive, partying mood! What should you do? Should you cut back on your food earlier in the day to make room for the big feast?

What Ive just described is commonly known as “banking calories,” which is analogous to saving calories like money because you’re going to consume more later, and its a very common practice among dieters. If youre really serious about your diet and fitness goals however, then the answer is no, you should NOT bank calories! Here’s why and here’s what you should do instead:

First of all, if you’re being really honest with yourself, you have to agree that there’s almost always something healthy to eat at any gathering. You know those tables you see at holiday parties that are covered with yards of chips, dips, pretzels, cookies, salami, candies, cheese, punch, liquor, and a seemingly endless assortment of other goodies? Well, did you also notice that there’s usually a tray full of carrot sticks, cauliflower, celery, fruit, turkey breast and other healthy snacks too?

No matter where you are, you always have options, so make the best choice you can based on whatever your options are. If nothing else, you can choose to eat a small portion of “party foods” rather than a huge portion.

If you skip meals or eat less earlier in the day to bank calories for a big feast at night, you are thinking only in terms of calories, but yore depriving yourself of the valuable nutrition you need all day long in terms of protein (amino acids), carbohydrates, essential fats, vitamins, minerals and other nutrients that come from healthy food, as well as the small frequent meals required to stoke the furnace of your metabolism.

Not only that, but eating less early in the day in anticipation for overeating later is more likely to increase your appetite, causing you to binge or eat much more than you thought you would at night when the banquet does arrive.

Eating healthy food earlier in the day is likely to fill you up and you’ll be less likely to overeat in the evening. High fiber foods, healthy fats and especially lean protein, tend to suppress your appetite the most.

I dont like the concept of “banking calories.” Your body just doesn’t work that way – it tends to seek equilibrium by adjusting your appetite to the point where you consume the same total amount of calories in the end anyway.

Even if it worked the way you wanted it to, why would you eat less (starve) in an attempt to burn more fat, then overeat (binge) and put the fat right back on? Why allow yourself to put on fat in the first place?

A starving and bingeing pattern will almost certainly cause more damage than an occasional oversize meal. Some dieticians might even say that this kind of behavior borders on disordered eating.

Banking jobs considered secure job during recession period

If one becomes an investment banker, then one will always have to deal with money. The important criterions for investment banking jobs are managing money, investing money, and also trading money by means of bonds. With the proper training of business, one may find a position for oneself in this type of money market. For investment banking jobs one should search for bigger type of companies situated in financial capital of globe to seek one-s position in the reputed ones. Companies like Merrill Lynch and many other reputed names comprise this sector, those of which extends investment services for the big type clients like governments and multinational corporations.

One should concentrate one-s job searching endeavour for the investment banks of regional nature that conducts their business in the middle markets. One-s skills as the investment banker can be utilized in these types of jobs in a small degree, in the form of assisting investors individually and guiding small businesses advancing financially. One should contemplate for job searching for some boutique firms to work in favour of one if one has specialized type of interest like financial analysis or bond trading. These types of firms are smaller in type and extend very specialized nature of services so that one-s capability suits the job type precisely prior to one-s submitting of application. For being conversant with investment banking jobs, one should utilize published resources from reputed institutions of financial education like Harvard Business School for identifying firms in which one may like to work.

One of the main features of international banking jobs is Offshore Banking. In offshore banking clients are helped to perform financial transactions by means of bank accounts of corporate both confidentially and securely outside the country of incorporation or residence. If prepared in right manner, clients are benefitted legally from international banking of tax exemption. Offshore banking is secure, reliable and stable. In addition, an offshore bank account in Hong Kong and Singapore have good image. Clients contemplating offshore banking with corporate type of bank account become benefitted by way of adequate protection in case of instability.

India is being projected as the next economic superpower immediately after United States and China. India has always been major investment destinations from abroad and it has turned into most attractive market having high potential. Many multinational companies showed great interests for setting up their businesses in India because of multifarious opportunities. Presences of large number of industries ensure more employments for the job seekers at different sectors among which Banking industry is certainly a vital sector. For the last few decades, India is showing tremendous improvements in the perspective of its GDP growth and overall economic situations and for this reason Banking sectors have made great contributions to achieve this feat. Owing to this reason, scope for banking jobs in India has increased manifold.

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Software Investment Banking – The Art Of Business Valuation

One of the most challenging aspects of selling a software company is coming up with a business valuation. Sometimes the valuations provided by the market (translation – a completed transaction) defy all logic. In other industry segments there are some pretty handy rules of thumb for valuation metrics. In one industry it may be 1 X Revenue, in another it could be 7.5 X EBITDA.

Since it is critical to our business to help our information technology clients maximize their business selling price, I have given this considerable thought. Why are some of these software company valuations so high? It is because of the profitability leverage of technology?

A simple example is what is Microsoft’s incremental cost to produce the next copy of Office Professional? It is probably $1.20 for three CD’s and 80 cents for packaging. Let’s say the license cost is $400. The gross margin is north of 99%. That does not happen in manufacturing or services or retail or most other industries.

One problem in selling a small technology company is that they do not have any of the brand name, distribution, or standards leverage that the big companies possess. So, on their own, they cannot create this profitability leverage. The acquiring company, however, does not want to compensate the small seller for the post acquisition results that are directly attributable to the buyer’s market presence. This is what we refer to as the valuation gap.

What we attempt to do is to help the buyer justify paying a much higher price than a pre-acquisition financial valuation of the target company. In other words, we want to get strategic value for our seller. Below are the factors that we use in our analysis:

1. Cost for the buyer to write the code internally – Many years ago, Barry Boehm, in his book, Software Engineering Economics, developed a constructive cost model for projecting the programming costs for writing computer code. He called it the COCOMO model. It was quite detailed and complex, but I have boiled it down and simplified it for our purposes.

We have the advantage of estimating the projects retrospectively because we already know the number of lines of code comprising our client’s products. In general terms he projected that it takes 3.6 person months to write one thousand SLOC (source lines of code). So if you looked at a senior software engineer at a $70,000 fully loaded compensation package writing a program with 15,000 SLOC, your calculation is as follows – 15 X 3.6 = 54 person months X $5,800 per month = $313,200 divided by 15,000 = $20.88/SLOC.

Before you guys with 1,000,000 million lines of code get too excited about your $20.88 million business value, there are several caveats. Unfortunately the market does not care and will not pay for what it cost you to develop your product.

Secondly, this information is designed to help us understand what it might cost the buyer to develop it internally so that he starts his own build versus buy analysis. Thirdly, we have to apply discounts to this analysis if the software is three generations old legacy code, for example. In that case, it is discounted by 90%. You are no longer a technology sale with high profitability leverage. They are essentially acquiring your customer base and the valuation will not be that exciting.

If, however, your application is a brand new application that has legs, start sizing your yacht. Examples of this might be a click fraud application, Pay Pal, or Internet Telephony. The second high value platform would be where your software technology “leap frogs” a popular legacy application.

An example of this is when we sold a company that had completely rewritten their legacy distribution management platform for a new vertical market in Microsoft’s latest platform. They leap frogged the dominant player in that space that was supporting multiple green screen solutions. Our client became a compelling strategic acquisition. Fast forward one year and I hear the acquirer is selling one of these $100,000 systems per week. Now that’s leverage!

2. Most acquirers could write the code themselves, but we suggest they analyze the cost of their time to market delay. Believe me, with first mover advantage from a competitor or, worse, customer defections, there is a very real cost of not having your product today.

We were able to convince one buyer that they would be able to justify our seller’s entire purchase price based on the number of client defections their acquisition would prevent. As it turned out, the buyer had a huge install base and through multiple prior acquisitions was maintaining six disparate software platforms to deliver essentially the same functionality.

This was very expensive to maintain and they passed those costs on to their disgruntled install base. The buyer had been promising upgrades for a few years, but nothing was delivered. Customers were beginning to sign on with their major competitor.

Our pitch to the buyer was to make this acquisition, demonstrate to your client base that you are really providing an upgrade path and give notice of support withdrawal for 4 or 5 of the other platforms. The acquisition was completed and, even though their customers that were contemplating leaving did not immediately upgrade, they did not defect either. Apparently the devil that you know is better than the devil you don’t in the world of information technology.

3. Another arrow in our valuation driving quiver for our sellers is we restate historical financials using the pricing power of the brand name acquirer. We had one client that was a small IT company that had developed a fine piece of software that compared favorably with a large, publicly traded company’s solution. Our product had the same functionality, ease of use, and open systems platform, but there was one very important difference.

The end-user customer’s perception of risk was far greater with the little IT company that could be “out of business tomorrow.” We were literally able to double the financial performance of our client on paper and present a compelling argument to the big company buyer that those economics would be immediately available to him post acquisition. It certainly was not GAP Accounting, but it was effective as a tool to drive transaction value.

4. Financials are important so we have to acknowledge this aspect of buyer valuation as well. We generally like to build in a baseline value (before we start adding the strategic value components) of 2 X contractually recurring revenue during the current year.

So, for example, if the company has monthly maintenance contracts of $100,000 times 12 months = $1.2 million X 2 = $2.4 million as a baseline company value component. Another component we add is for any contracts that extend beyond one year. We take an estimate of the gross margin produced in the firm contract years beyond year one and assign a 5 X multiple to that and discount it to present value.

Let’s use an example where they had 4 years remaining on a services contract and the last 3 years were $200,000 per year in revenue with approximately 50% gross margin. We would take the final tree years of $100,000 annual gross margin and present value it at a 5% discount rate resulting in $265,616. This would be added to the earlier 2 X recurring year 1 revenue from above. Again, this financial analysis is to establish a baseline, before we pile on the strategic value components.

5. We try to assign values for miscellaneous assets that the seller is providing to the buyer. Don’t overlook the strategic value of Blue Chip Accounts. Those accounts become a platform for the buyer’s entire product suite being sold post acquisition into an installed account. It is far easier to sell add-on applications and products into an existing account than it is to open up that new account. These strategic accounts can have huge value to a buyer.

6. Finally, we use a customer acquisition cost model to drive value in the eyes of a potential buyer. Let’s say that your sales person at 100% of Quota earns total salary and commissions of $125,000 and sells 5 net new accounts. That would mean that your base customer acquisition cost per account was $25,000. Add a 20% company overhead for the 85 accounts, for example, and the company value, using this methodology would be $2,550,000.

After reading this you may be saying to yourself, come on, this is a little far fetched. These components do have real value, but that value is open to a broad interpretation by the marketplace. We are attempting to assign metrics to a very subjective set of components. The buyers are smart, and experienced in the M&A process and quite frankly, they try to deflect these artistic approaches to driving up their financial outlay.

The best leverage point we have is that those buyers know that we are presenting the same analysis to their competitors and they don’t know which component or components of value that we have presented will resonate with their competition. In the final analysis, we are just trying to provide the buyers some reasonable explanation for their board of directors to justify paying 8 X revenues for an acquisition.