Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
6 terms. Page 1 of 1.
ma · intermediate
Terms describing an acquisition's effect on the acquirer's earnings per share: a deal is accretive if it increases the acquirer's earnings per share, and dilutive if it decreases it. The distinction is a commonly cited, though incomplete, shorthand for evaluating whether a deal is likely to create value, since it does not on its own capture the deal's strategic merit or risk.
accounting · intermediate
An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the associated cash is actually received or paid, as distinguished from cash accounting, which records transactions only when cash changes hands. It is the method required under both GAAP and IFRS for most companies.
ma · intro
A transaction in which one company purchases and takes control of another, which then typically ceases to exist as an independent entity or continues as a subsidiary of the acquirer. Acquisitions can be friendly, negotiated cooperatively with the target's management and board, or hostile, pursued directly against the target board's wishes.
accounting · intro
The accounting method of gradually expensing the cost of an intangible asset, such as a patent or acquired goodwill, over its estimated useful life, functioning similarly to depreciation but applied to intangible rather than physical assets.
ma · intermediate
An acquisition structure in which the buyer purchases specific assets and liabilities of a target company, rather than acquiring the target company's shares directly, often used to allow the buyer to select which assets and liabilities to take on and to leave certain risks behind with the seller.
governance · intro
A committee of a company's board of directors, typically composed of independent directors, responsible for overseeing financial reporting, the internal control environment, and the work of external auditors. It serves as a key mechanism for ensuring the integrity of a company's published financial statements.