|O| M&A Term Definition Note Observer (status) usually granted pursuant to a shareholders’ agreement in a Private Equity transaction and which permits an individual to attend, participate in, and receive information relating to, meetings of a company’s Board of Directors. An Observer is not permitted to vote on matters and is not himself/herself a director…
Month: December 2023
Glossary of M&A Jargon and Terminology_N
|N| M&A Term Definition Note (Non) Binding the binding character of clauses or the entire agreement is a matter that requires particular attention when preparing documentation to be exchanged by the parties. Non-binding statements are often chosen at an early stage and changed into more binding statements/documents as the sale process progresses. N4 NAFTA See…
Glossary of M&A Jargon and Terminology_M
|M| M&A Term Definition Note M&A See mergers and acquisitions. N6 M&A Mergers and Acquisitions. N2 M&A shorthand for Mergers and Acquisitions — a phrase that covers the process of buying, selling and merging businesses. See also Business Combination. N1 M&A (mergers and acquisitions) Mergers and acquisitions (M&A) is a general term used to refer…
Glossary of M&A Jargon and Terminology_L
| L | M&A Term Definition Note Levered Beta a measure of Beta reflecting a Capital Structure that includes debt. Also known as equity beta. Contrast with Unlevered Beta N7 Liquidation Value the amount, net of relevant costs (e.g., preparation and disposal), that would be realized if the business is terminated, and the assets are…
Glossary of M&A Jargon and Terminology_K
| K | M&A Term Definition Note Key Employee Employee who is of particular importance to the company. N5 Key Performance Indicator (KPI) A defined measure, often of a financial nature, which is used to determine whether targets have been met (for example in the context of Management Participation). N2 Key Person Discount an amount…
Glossary of M&A Jargon and Terminology_J
| J | M&A Term Definition Note JAFZA Jebel Ali Free Zone Authority, the regulator for the Jebel Ali Free Zone, an industrial and manufacturing Free Zone in Dubai N1 J-curve effect (private equity) Illustrative payoff profile for private equity investments, in terms of which short-term losses are expected to be offset by greater profits…
Glossary of M&A Jargon and Terminology_I
| I | M&A Term Definition Note IAS International Accounting Standards N2 IAS19 See International Accounting Standard 19. N6 IBC acronym for Independent Board Committee N1 IBERCLEAR the Spanish Central Securities Depository. IBERCLEAR is in charge of both the register of Securities (held in book-entry form) and the clearing and settlement of all trades from…
Glossary of M&A Jargon and Terminology_H
| H | M&A Term Definition Note H Hijri Calendar N1 haircut Difference between the quoted market value of an asset and the value attributed to the asset for the purpose of holding it as collateral. N6 Handbook the handbook of all of the FSA’s rules, including (but not limited to) the Listing Rules, the…
Glossary of M&A Jargon and Terminology_G
| G | M&A Term Definition Note GAAP Generally Accepted Accounting Principles. For pensions accounting in the UK, GAAP will be FRS17 and in the US FAS87. N6 GAAP Short for “generally accepted accounting principles”. N2 GAAP generally accepted accounting principles. See also IFRS. 1. (US) US GAAP refers to GAAP in the United States….
Glossary of M&A Jargon and Terminology_F
| F | M&A Term Definition Note face value See nominal value. N6 Facility Credit (line). N2 Facility another name for loan or credit line N1 Fact Book Description of a company used to provide information to potential investors, e.g. prior to an IPO, corporate action or M&A process. A fact book may include both…