Glossary

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Corporate finance has its fair share of acronyms and strange terms and we always try to minimise the use of technical jargon. Our glossary will help you understand some of the language you may see or hear when dealing with us.

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A

Angel Investor
Assets Under Management (AUM)
Annuity
Asset Turnover Ratio
Alternative Lender
Acid-Test Ratio
Asset
Acid-Test Ratio
Acquisition

B

Bankruptcy
Balanced Scorecard
Buy-Side
Balance Sheet

C

Cost of Revenue
Churn Rate
Clearinghouse
Commercial Due Diligence
Cash Flow Statement
Corporate Finance
COGS (Cost of Goods Sold)
Capital
Cash Free Debt Free
CAGR (Compound Annual Growth Rate)
Cost of Debt
Contingent Liability
Cost of Equity
Cost of Capital
Contribution Margin

D

Days Payable Outstanding
DCF (Discounted Cash Flow)
Deferred Payment
Debt Ratio

E

EBIT
EBITDA
Enterprise Value – EV

F

Free Cash Flow
Facility
Financial Distress

G

Gap Analysis
Gearing
Gross Margin

H

Hard Asset

I

Impaired Asset

J

Junior Debt

K

KPI (Key Performance Indicators)

L

LBO (Leveraged Buyout)

M

Merger
MBO (Management Buyout)
Mezzanine Debt

N

Negotiable Instrument
Non-Operating Asset

O

Overhead Ratio
Out-of-Pocket Expenses
Overleveraged

P

PBIT
Payout Ratio
Price/Earnings Ratio
Private Equity
PIK (Payment In Kind)

R

Restructuring
Revolving Loan Facility

S

Senior Debt
Subprime Loan
Skin in the Game
Seed Funding
SPA (Sale and Purchase Agreement)
Solvency Ratio

T

TTM (Trailing 12 Months)
Tax Covenant
TCO (Total Cost of Ownership)
Tombstone
Tangible Asset
Teaser

U

Unitranche

V

VIMBO (Vendor Initiated Management Buy Out)
Venture Capital
Valuation 
Vendor

W

Working Capital

X

Y

Yield
YOY (Year-Over-Year)

Z