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

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

B

Balance Sheet
Balanced Scorecard
Bankruptcy
Buy-Side

C

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

D

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

E

EBIT
EBITDA
Enterprise Value – EV

F

Facility
Financial Distress
Free Cash Flow

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

MBO (Management Buyout)
Merger
Mezzanine Debt

N

Negotiable Instrument
Non-Operating Asset

O

Out-of-Pocket Expenses
Overhead Ratio
Overleveraged

P

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

R

Restructuring
Revolving Loan Facility

S

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

T

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

U

Unitranche

V

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

W

Working Capital

X

Y

Yield
YOY (Year-Over-Year)

Z