Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
14 terms. Page 1 of 1.
accounting · intermediate
Also called: DSO
A measure of how quickly a company collects payment after a sale, calculated as the average number of days it takes to convert credit sales into cash. A rising figure over time can be an early warning sign of deteriorating customer credit quality or collection practices.
organizational · intermediate
The distribution of decision-making authority away from a central point, such as corporate headquarters, toward lower levels of an organisation, such as regional units or individual teams. It can increase responsiveness and local accountability, at some cost to overall consistency and central control.
ma · intermediate
The final, legally binding contract that sets out the complete, enforceable terms of a merger or acquisition, following the preliminary understanding typically established in a letter of intent. It includes detailed provisions covering price, representations and warranties, closing conditions, and remedies for breach.
organizational · intro
The process by which a manager or leader assigns responsibility and authority for specific tasks or decisions to someone else, typically a subordinate, while retaining ultimate accountability for the outcome. Effective delegation is widely considered essential for an organisation to scale beyond what a single leader can personally oversee.
accounting · intro
The accounting method of allocating the cost of a tangible, physical asset, such as equipment or a building, over its estimated useful life, rather than expensing the full cost in the year of purchase. It reflects the gradual consumption of the asset's economic value and reduces reported net income without representing an actual cash outflow in the period recorded.
finance · intro
The reduction in existing shareholders' percentage ownership of a company that occurs when new shares are issued, such as in a new financing round or an employee option pool expansion. Investors and founders alike track dilution carefully across financing rounds because it directly affects the ultimate value of their stake.
finance · intro
Also called: DCF
A valuation method that estimates the value of an investment or business by projecting its future cash flows and discounting them back to a present value using a rate that reflects the time value of money and investment risk. It is one of the most widely used intrinsic valuation methods, though its output is highly sensitive to the growth and discount-rate assumptions fed into it.
strategy · intro
A theory, developed by academic Clayton Christensen, describing how a smaller company with fewer resources can successfully challenge established incumbents by initially targeting overlooked market segments with a simpler, cheaper offering, then progressively moving upmarket as its product improves, eventually displacing the incumbents.
risk · intro
A risk management strategy of spreading investment or business exposure across a range of assets, markets, or activities, so that poor performance in any single area has a limited effect on overall results. It is one of the most fundamental principles in both investment portfolio management and broader corporate risk management.
strategy · intermediate
A corporate growth strategy in which a company expands into new products, markets, or industries beyond its original core business, pursued either to reduce overall business risk or to capture new growth opportunities. It is distinguished from the investment concept of diversification, though the underlying logic of spreading exposure is related.
strategy · intermediate
The sale, spin-off, or closure of a business unit, subsidiary, or asset that a company has determined no longer fits its strategic priorities, often pursued to sharpen focus on core operations, raise capital, or satisfy regulatory requirements following an acquisition.
finance · intro
A distribution of a portion of a company's earnings paid to shareholders, typically in cash or additional shares, representing one of the two main ways, alongside share buybacks, that public companies return capital to shareholders. A company's dividend policy, including whether and how much to pay, reflects a balance between rewarding shareholders and retaining capital for reinvestment.
governance · intermediate
A share structure in which a company issues more than one class of stock with different voting rights, commonly used by founders to retain outsized voting control over a company even after selling a majority of its economic ownership to public shareholders through an IPO.
ma · intro
The comprehensive investigation and verification process a buyer undertakes before completing an acquisition, examining a target company's financial records, legal standing, operations, and other material risks. Its purpose is to confirm that a target is what it appears to be and to surface risks that could affect the deal's price or structure before it becomes binding.