Reference

Finance Glossary

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

45 terms

A

Accretion/Dilution

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Add-on Acquisition (Bolt-on)

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B

Beta

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Bulge Bracket

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C

Capital Structure

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Carry (or Carried Interest)

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Comparable Companies Analysis (Comps)

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Confidential Information Memorandum (CIM)

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Covenant

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D

DCF (Discounted Cash Flow)

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Debt/EBITDA

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Dividend Recapitalization

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Due Diligence

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E

EBITDA

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EBITDA Margin

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Elite Boutique

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Enterprise Value

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Equity Kicker

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Equity Sponsorship

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F

Fairness Opinion

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Football Field Chart

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Free Cash Flow (FCF)

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G

General Partner (GP)

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H

Hurdle Rate

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I

IRR (Internal Rate of Return)

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J

J-Curve

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L

Letter of Intent (LOI)

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Leveraged Buyout (LBO)

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Limited Partner (LP)

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Lock-up Period

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M

Management Buyout (MBO)

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Mezzanine Debt

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MOIC

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Multiple Expansion

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P

Pitch Book

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Platform Company

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Precedent Transactions

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Q

Quality of Earnings (QoE)

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R

Representations & Warranties (Reps & Warranties)

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Roadshow

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S

Secondary Buyout (SBO)

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Synergies

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T

Terminal Value

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W

WACC (Weighted Average Cost of Capital)

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Working Capital

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