Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
10 terms. Page 1 of 1.
ma · intermediate
A contractual provision in an acquisition agreement under which part of the purchase price is contingent on the acquired business achieving specified performance targets after the deal closes, typically used to bridge a valuation gap between buyer and seller. Earn-outs frequently become a source of post-deal dispute, since sellers no longer control operations but their final payout still depends on operating results.
accounting · intro
Also called: EPS
A company's net income divided by its number of outstanding shares, representing the portion of profit attributable to each individual share. It is one of the most commonly cited metrics in equity analysis, and is central to the concept of a deal being accretive or dilutive to an acquirer's shareholders.
finance · intro
Also called: earnings before interest, taxes, depreciation and amortisation
Earnings before interest, taxes, depreciation, and amortisation, a commonly used measure of a company's core operating profitability that strips out the effects of financing decisions, tax jurisdictions, and non-cash accounting charges. It is widely used to compare profitability across companies with different capital structures, though critics note it can obscure real cash costs such as capital expenditure.
strategy · intro
The cost advantages a company gains as its production volume increases, typically because fixed costs are spread over a larger number of units, reducing the average cost per unit. Achieving meaningful economies of scale is a common strategic rationale offered for pursuing growth or consolidation through acquisition.
organizational · intro
The rate at which employees leave an organisation and are replaced, typically expressed as a percentage of the total workforce over a given period. High turnover can indicate underlying problems with management, compensation, or culture, and imposes real costs on an organisation through recruitment, training, and lost institutional knowledge.
risk · intro
Also called: ERM
A structured, organisation-wide approach to identifying, assessing, and managing the full range of risks a company faces, including financial, operational, strategic, and reputational risks, rather than managing each risk category separately in isolation. It is intended to give senior leadership and the board a comprehensive, integrated view of the organisation's overall risk profile.
finance · intro
Also called: EV
A measure of a company's total value that adds its market capitalisation to its total debt and subtracts its cash and cash equivalents, representing the theoretical price a buyer would need to pay to acquire the entire business, including taking on its debt. It is widely used as the numerator in valuation multiples, such as enterprise-value-to-EBITDA, because it is capital-structure neutral.
ma · intermediate
An arrangement in which a portion of an acquisition's purchase price is held by a neutral third party for a specified period after closing, to be released to the seller once any indemnification claims or other contingencies have been resolved. It protects a buyer's ability to recover funds if problems with the acquired business surface after the deal has already closed.
governance · intro
Also called: environmental, social, and governance
A framework used by investors and companies to evaluate performance and risk across environmental, social, and governance factors, alongside traditional financial metrics. It has become an increasingly prominent, and increasingly debated, part of institutional investment and corporate reporting practice over the past decade.
governance · intro
The total package of pay and incentives, including salary, bonuses, stock awards, and other benefits, provided to a company's senior executives. Its structure is closely scrutinised by shareholders and regulators for how well it aligns executives' financial incentives with long-term company and shareholder performance.