Acquisition
An acquisition is the process by which one company purchases another business by acquiring either its shares or its assets. Businesses pursue acquisitions to accelerate growth, expand into…
Glossary
A
Asset Deal
An asset deal is a transaction in which the buyer acquires selected assets and, where agreed, specific liabilities of a business rather than purchasing the shares of the…
C
Closing
Closing is the stage of an M&A transaction at which legal ownership of the business is transferred from the seller to the buyer and the transaction is completed.…
D
Disposal (Sale)
A disposal is the sale of all or part of a company, business or assets by one or more shareholders. A disposal may involve a strategic buyer (trade…
Due Diligence
Due diligence is the comprehensive investigation undertaken before completing an acquisition, investment or financing transaction. Its purpose is to verify information provided by the seller, identify risks and…
E
Enterprise Value (EV)
Enterprise Value (EV) represents the total value of a business, irrespective of how it is financed. Unlike Equity Value, which reflects only the value attributable to shareholders, Enterprise…
Equity Value
Equity Value represents the value attributable to a company’s shareholders after deducting net debt and other financial obligations from its Enterprise Value. It reflects the amount that shareholders…
L
Leveraged Buyout (LBO)
A Leveraged Buyout (LBO) is an acquisition structure in which a significant portion of the purchase price is financed through debt, with the remaining amount funded by equity…
M
Management Buyout (MBO)
A Management Buyout (MBO) is a transaction in which a company’s existing management team acquires a significant ownership stake, or the entire business, often with the support of…
P
Private Equity
Private Equity refers to investments made by specialised investment firms into privately owned companies or public companies that are taken private. Private equity investors typically provide capital, strategic…
T
Trade Sale
A Trade Sale is an exit transaction in which a company is sold to a strategic buyer, typically another company operating in the same or a related industry.…
Transaction Readiness
Transaction Readiness refers to the preparation undertaken by a company before launching a potential M&A process. The objective is to ensure that the business, management team, financial information…
V
Vendor Due Diligence
Vendor Due Diligence (VDD) is a due diligence review commissioned by a seller before launching a transaction process. Unlike traditional buyer-led due diligence, the seller controls the scope…
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