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.
governance · intermediate
A designated independent board member who coordinates the activities of the other independent directors and serves as a primary liaison between them and senior management, particularly important in companies where the chief executive also serves as chairman of the board.
ma · intro
Also called: LOI
A preliminary, generally non-binding document outlining the key proposed terms of a transaction before a definitive, legally binding agreement is negotiated and signed. It signals serious intent to proceed and typically covers price, structure, and exclusivity, while leaving detailed legal terms to be worked out afterward.
finance · intro
Also called: financial leverage, gearing
The use of borrowed funds to increase the potential return on an investment, magnifying both gains and losses relative to what would result from using equity capital alone. A highly leveraged company carries more fixed financial obligations, which increases the risk of financial distress if operating performance weakens.
ma · intermediate
Also called: LBO
An acquisition financed with a significant proportion of borrowed money, with the assets and cash flows of the acquired company itself often used as collateral for the debt. Leveraged buyouts are a core strategy of private equity firms, aiming to amplify equity returns while requiring successful post-acquisition operating performance to service the resulting debt.
finance · intermediate
A contractual right, typically held by preferred shareholders such as venture capital investors, entitling them to be paid back a specified amount, often before common shareholders receive anything, in the event a company is sold, liquidated, or otherwise wound down.
risk · intermediate
The risk that a company or investor will be unable to meet short-term financial obligations, or will be unable to sell an asset quickly without accepting a significant price discount, because of insufficient cash or a lack of ready buyers in the market.