Using Commercial Share of Wallet in Private Equity Investments
First Claim
1. A method implemented by a computer-based system for estimating spending capacity of a company having a processor and a tangible, non-transitory memory, the method comprising:
- modeling, by the computer-based system, industry spending patterns;
estimating, by the computer-based system, a commercial size of spending wallet of a company, wherein the commercial size of spending wallet is the total business spending of the company that can be transacted using a payment instrument,wherein the payment instrument is associated with a transaction account, andwherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known.
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Accused Products
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.
19 Citations
20 Claims
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1. A method implemented by a computer-based system for estimating spending capacity of a company having a processor and a tangible, non-transitory memory, the method comprising:
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modeling, by the computer-based system, industry spending patterns; estimating, by the computer-based system, a commercial size of spending wallet of a company, wherein the commercial size of spending wallet is the total business spending of the company that can be transacted using a payment instrument, wherein the payment instrument is associated with a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. A system comprising:
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a processor for estimating spending capacity of a company; a tangible, non-transitory memory communicating with the processor, the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations of; modeling, by the processor, industry spending patterns; estimating, by the processor, a commercial size of spending wallet of a company, wherein the commercial size of spending wallet is the total business spending of the company that can be transacted using a payment instrument, wherein the payment instrument is associated with a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known. - View Dependent Claims (14, 15, 16)
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17. A tangible, non-transitory computer readable medium comprising instructions stored thereon that, in response to execution by a processor for estimating spending capacity of a company, cause the processor to perform operations of
modeling, by the processor, industry spending patterns; -
estimating, by the processor, a commercial size of spending wallet of a company, wherein the commercial size of spending wallet is the total business spending of the company that can be transacted using a payment instrument, wherein the payment instrument is associated with a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known. - View Dependent Claims (18, 19, 20)
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Specification