Category: Glossary of M&A

| 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…

| E | M&A Term Definition Note EAFE Europe, Australasia and Far East. Often used to describe an overseas equity mandate for US investors. N6 Early Stage (private equity) Existing company requiring finance which has developed a prototype product or service but still has limited revenue. N6 Early Stage Finance  Participation of a Financial Investor…

| D | M&A Term Definition Note D Reorg a Tax-Free Reorg under Section 368(a)(1)(D) of the US Internal Revenue Code wherein a Target corporation transfers assets to an acquiring corporation if 50 percent of the combined voting power and value of the Stock of the acquiring corporation is owned by the transferor corporation and/or…

| C | M&A Term Definition Note C Corporation refers to the default tax treatment of a corporation as an entity separate from its owner and taxed on its own income. Such entities include those organized as a federal or state law corporation, an association, or other business entity that is taxable as a corporation…

| B | M&A Term Definition Note B Reorg a Stock-for-Stock Acquisition treated as a Tax-Free Reorg under Section 368(a)(1)(B) of the US Internal Revenue Code if, among other things, the acquiring corporation exchanges solely its own voting Stock (or voting Stock of its 80 percent Parent) for 80 percent of the combined voting power…

| A | M&A Term Definition Note A/B Capital Structure see High Vote/Low Vote N1 A/B Structure see High Vote/Low Vote N1 AAA Highest rating assigned by a number of credit rating agencies, indicating the relative security of an issuer of debt. Usually accorded to quasi government and large multinational corporate borrowers. N6 ABI acronym…