Standard advisory glossary

finance · intro

Market Capitalization

Also called: market cap

The total market value of a public company's outstanding shares, calculated by multiplying the current share price by the number of shares outstanding. It is the most commonly cited single figure for a public company's size, though it reflects equity value only and does not account for debt.

ma · intermediate

Material Adverse Change

Also called: mac clause

A contractual clause in an acquisition agreement that allows a buyer to walk away from, or renegotiate, a deal if the target company experiences a significant negative change in its business, financial condition, or prospects between signing and closing. Disputes over whether a given event actually qualifies as a material adverse change are a recurring source of M&A litigation.

organizational · intermediate

Matrix Organization

An organisational structure in which employees report to more than one manager simultaneously, typically along both a functional line, such as finance or engineering, and a project or product line. It is intended to improve resource flexibility and cross-functional collaboration, though it can also create conflicting priorities and unclear accountability.

ma · intro

Merger

A transaction in which two companies combine to form a single new entity, as distinguished from an acquisition, in which one company absorbs another that ceases to exist as a separate entity. In practice the terms merger and acquisition are often used loosely and interchangeably, even though they describe technically distinct legal and structural outcomes.

ma · intro

Minority Stake

An ownership position in a company representing less than fifty percent of its voting shares, giving the holder some financial exposure and, depending on specific rights negotiated, some influence, but not outright control over the company's decisions.