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 using individual corporate data and aggregate corporate data to create a model of industry spending patterns; and
estimating, by the computer-based system, a commercial size of spending wallet of a company based on, at least, known financial statement data of the company, total known business spending of the company, and the model of industry spending patterns, 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.
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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.
170 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 using individual corporate data and aggregate corporate data to create a model of industry spending patterns; and estimating, by the computer-based system, a commercial size of spending wallet of a company based on, at least, known financial statement data of the company, total known business spending of the company, and the model of industry spending patterns, 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 using individual corporate data and aggregate corporate data to create a model of industry spending patterns; and estimating, by the processor, a commercial size of spending wallet of a company based on, at least, known financial statement data of the company, total known business spending of the company, and the model of industry spending patterns, 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 non-transitory computer readable medium comprising instructions stored thereon that, in response to execution by a computing device for estimating spending capacity of a company, cause the computing device to perform operations of:
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modeling, by the computing device, industry spending patterns using individual corporate data and aggregate corporate data to create a model of industry spending patterns; and estimating, by the computing device, a commercial size of spending wallet of a company based on, at least, known financial statement data of the company, total known business spending of the company, and the model of industry spending patterns, 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