|Q| M&A Term Definition Note Q&A Questions and answers (see also Q&A Process). N2 Q&A Process This gives buyers the opportunity to obtain further information by asking questions arising from the documents made available for Due Diligence. Depending on the structure of the transaction, the Q&A process may be highly formalised. Particularly in an Auction…
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Glossary of M&A Jargon and Terminology_P
|P| M&A Term Definition Note P&L See profit and loss statement. N6 P&L Statement shorthand for Profit and Loss Statement N1 P/E acronym for price to earnings, as in Price/Earnings Ratio N1 P/E ratio (price earnings ratio) Commonly used indicator of the value of a stock, calculated as a company’s current share price divided by…
Glossary of M&A Jargon and Terminology_O
|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…
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…