Jargon BusterCorporate Finance has a splendid collection of slang and jargon. Here are some of the more common terms in current use:
secondary buy out (2BO): the institutional investor exits, after their role in the original buy-out, and sells their share in the business on to another investor, or back to the original shareholders. seed capital: funding provided by a venture capitalist or specialist equity fund used to finance start up and early stage development. SME: small-medium sized enterprise structured finance: collection of all debt instruments used to fund an acquisition. syndicate: a group of investors or lenders joining in an opportunity. Back to the Toptag along: gives minority shareholders the right to join in with the majority shareholders on the sale of their shares. takeover bid: an attempt to buy shares in a target company - often at a higher price than their market value - in order to gain a controlling interest in the said company. TechMARK: an index of technology stocks launched in 1999 by the London Stock Exchange. For companies on the Official List committed to technological innovation. It includes biotechnology companies as well as internet stocks and software companies. trade sale: sale of one business to another; one of the main exit routes. Back to the Topventure capital: also known as risk capital. Private equity capital available for businesses, usually from a mix of institutional funds. Venture capitalists are also called VCs. VIMBO or VRMBO: Vendor investing buy out - where the company selling part of its business to a buy-out team reinvests in the newco (often cheaper or less divisive than other forms of disposal) Back to the Topwar chest: money in hand to fund acquisitions warranties: promises and guarantees that a vendor makes to a purchaser about assets, performance and liabilities of the company. Often secured against personal assets, with a financial cap, and tied in to an earn-out for the vendor. Back to the TopX Y Z
Jargon reproduced from The Culture of Capital, kind permission of Capsica |
