Method of identifying potential targets for a capital transaction

• US 20020073006A1
• Filed: 10/16/2001
• Published: 06/13/2002
• Est. Priority Date: 09/01/1999
• Status: Active Grant

• Current Assignee: S&P Global Market Intelligence, Inc. (S&P Global Inc.)
• Original Assignee: Capital IQ (Standard & Poor's Investment Advisory Services LLC)
• Inventors: Goldman, Neal D.
• Granted Patent: US 8,355,968 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method of identifying potential targets (i.e., buyers, investors, sellers, or acquisition targets) for a financial transaction. The method enables a user to specify at least one investment criteria based on which to run a search to identify the prospective targets, and to select a universe within which to search for the prospective targets. The method also enables the user to specify a type of financial transaction. A scoring algorithm that is used to score the results of the search is selected based on the user'"'"'s specification of the type of financial transaction.

Claims

1. A method of identifying potential targets for a capital transaction, said method comprising the steps of:

enabling a user to specify at least one investment criterion;

enabling said user to specify a type of said capital transaction; and

selecting a scoring algorithm based on said user'"'"'s selection of said type of capital transaction for assigning scores for said potential targets.

2. The method of claim 1, wherein said selecting comprises the step of setting a base score for each of said investment criteria based on said type of capital transaction.

3. The method of claim 2, further comprising the step of organizing at least tone of said investment criteria in a hierarchical structure.

4. The method of claim 3, wherein said organizing step comprises the step of arranging said hierarchical structure such that increasing depth of said hierarchical structure corresponds to increased specificity of said investment criteria.

5. The method of claim 4, further comprising the step of selecting said investment criteria from the group consisting of industry classification, firm characteristics, and geographies.

6. The method of claim 4, further comprising the step of generating a base score for said hierarchical structure.

7. The method of claim 6, further comprising the step of raising said base score of said hierarchical structure to a power that is representative of said depth of said hierarchical structure.

8. The method of claim 5, further comprising the step of normalizing maximum scores of said investment criteria to a score for said industry classification criterion.

9. The method of claim 8, wherein said normalizing step comprises multiplying said score for said industry classification by a ratio that corresponds to said type of capital transaction.

10. The method of claim 9, further comprising the steps of:

assigning a score to said potential target for each match between said potential target and one of said investment criteria specified by said user; and

aggregating said scores for each potential target to provide a standalone score for each potential target.

11. The method of claim 10, further comprising the steps of:

calculating a portfolio score for each potential target; and

summing said standalone score and said portfolio score for each potential target to provide an overall score for each potential target.

12. The method of claim 11, further comprising the step of ranking said potential targets on the basis of said overall score.

13. The method of claim 12, wherein said potential targets are potential buyers of a company.

14. The method of claim 12, wherein said potential targets are potential investors in a company.

15. The method of claim 12, wherein said potential targets are potential sellers of a company.

16. The method of claim 12, further comprising the step of inferring additional investment criteria based on said at least one investment criteria specified by said user.

18. The method of claim 17, wherein said selected one of said plurality of investment criteria comprises an industry classification criterion.

19. The method of claim 18, further comprising the step of enabling said user to specify a type of said capital transaction.

20. The method of claim 19, wherein said normalizing step comprises multiplying a score for said industry classification criterion by a ratio that corresponds to said type of capital transaction.

17. A method of identifying potential targets for a capital transaction, said method comprising the steps of:

enabling a user to specify a plurality of investment criteria; and

normalizing a maximum score for each of said investment criteria to a score for a selected one of said plurality of investment criteria.

21. A method of identifying potential targets for a capital transaction, said method comprising the steps of:

enabling a user to specify at least one investment criterion;

enabling said user to specify a type of said capital transaction;

setting a base score for each of said investment criteria based on said type of capital transaction;

normalizing a maximum score for each of said investment criteria to a score for a selected one of said investment criteria;

assigning a score to said potential target for each match between said potential target and one of said investment criteria specified by said user;

aggregating said scores for each potential target to provide a standalone score for each potential target;

calculating a portfolio score for each potential target;

summing said standalone score and said portfolio score for each potential target to provide an overall score for each potential target; and

ranking said potential targets on the basis of said overall score.

22. The method of claim 21, further comprising the step of organizing at least one of said investment criteria in a hierarchical structure.

23. The method of claim 22, wherein said organizing step comprises the step of arranging said hierarchical structure such that increasing depth of said hierarchical structure corresponds to increased specificity of said investment criteria.

24. The method of claim 23, further comprising the step of selecting said investment criteria from the group consisting of industry classification, firm characteristics, and geographies.

25. The method of claim 23, further comprising the step of generating a base score for said hierarchical structure.

26. The method of claim 25, further comprising the step of raising said base score of said hierarchical structure to a power that is representative of said depth of said hierarchical structure.

27. The method of claim 21, wherein said normalizing step comprises multiplying said score for said industry classification by a ratio that corresponds to said type of capital transaction.