Using commercial share of wallet in private equity investments

• US 20080228541A1
• Filed: 10/25/2007
• Published: 09/18/2008
• Est. Priority Date: 10/24/2005
• Status: Abandoned Application

• Current Assignee: Experian Marketing Solutions Incorporated (Experian plc)
• Original Assignee: Experian Marketing Solutions Incorporated (Experian plc)
• Inventors: Granger, Angela, Kornegay, Adam T., Bolin, Peter, McMillan, Helen, Megdal, Myles G.
• Application Number:
  US11/978,169
• Publication Number:
  US 20080228541A1
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 30/0204 Market segmentation
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Commercial size of spending wallet (“CSoSW”) is the total business spend of a business including cash but excluding bartered items. Commercial share of wallet (“CSoW”) is the portion of the spending wallet that is captured by a particular financial company. A modeling approach utilizes various data sources to provide outputs that describe a company'"'"'s spend capacity. Private equity firms and other investors of small businesses can use the CSoW/CSoSW modeling approach to more accurately evaluate small and privately held companies, both during investment and for evaluating prospective investments. Over-the-counter securities trading systems can also use this modeling approach to provide more accurate information and/or rankings of listed companies to their customers.

Claims

1. A method for evaluating the business prospects of a company, comprising:

(a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;

(b) estimating a commercial size of spending wallet of the company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and

(c) developing a strategy for making an investment in the company based on the commercial size of spending wallet of the company.

2. The method of claim 1, where the developing step comprises:

deciding whether to make an investment in the company.

5. The method of claim 1, where the developing step comprises:

deciding whether to make additional investment in the company.

3. (canceled)

4. (canceled)

6. A method for evaluating the business prospects of a company, comprising:

(a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;

(b) estimating a commercial size of spending wallet of the company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and

(c) using the commercial size of spending wallet of the company to corroborate other company data.

9. The method of claim 6, wherein the using step comprises:

using the commercial size of spending wallet of the company to corroborate financial data.

10. The method of claim 6, wherein the using step comprises:

using the commercial size of spending wallet of the company to corroborate industry data.

7. (canceled)

8. (canceled)

11. A method for evaluating the business prospects of a company, comprising:

(a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;

(b) estimating a commercial size of spending wallet of the company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and

(c) using the commercial size of spending wallet of the company to valuate the company.