Reference

Finance Glossary

Essential terminology for investment banking, private equity, M&A, and corporate finance.

45 terms

A

Accretion/Dilution

Add-on Acquisition (Bolt-on)

B

Beta

Bulge Bracket

C

Capital Structure

Carry (or Carried Interest)

Comparable Companies Analysis (Comps)

Confidential Information Memorandum (CIM)

Covenant

D

DCF (Discounted Cash Flow)

Debt/EBITDA

Dividend Recapitalization

Due Diligence

E

EBITDA

EBITDA Margin

Elite Boutique

Enterprise Value

Equity Kicker

Equity Sponsorship

F

Fairness Opinion

Football Field Chart

Free Cash Flow (FCF)

G

General Partner (GP)

H

Hurdle Rate

I

IRR (Internal Rate of Return)

J

J-Curve

L

Letter of Intent (LOI)

Leveraged Buyout (LBO)

Limited Partner (LP)

Lock-up Period

M

Management Buyout (MBO)

Mezzanine Debt

MOIC

Multiple Expansion

P

Pitch Book

Platform Company

Precedent Transactions

Q

Quality of Earnings (QoE)

R

Representations & Warranties (Reps & Warranties)

Roadshow

S

Secondary Buyout (SBO)

Synergies

T

Terminal Value

W

WACC (Weighted Average Cost of Capital)

Working Capital