Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
8 terms. Page 1 of 1.
strategy · intermediate
A significant, deliberate change in a startup's business model, product, or target market, typically made in response to evidence that the original strategy is not working, while retaining some core element, such as the founding team or a piece of underlying technology, from the original venture.
ma · intermediate
Also called: shareholder rights plan
A defensive measure adopted by a company's board to deter a hostile takeover, typically by giving existing shareholders, other than the hostile acquirer, the right to purchase additional shares at a discount if a bidder crosses a specified ownership threshold, diluting the acquirer's stake and making the takeover more expensive.
governance · intermediate
A provision, often included in a company's bond covenants, giving bondholders the right to demand early repayment if the company undergoes a change of control, such as a takeover, intended to protect creditors from the increased risk that often accompanies a change in ownership.
strategy · intermediate
A framework, developed by economist Michael Porter, for analysing the competitive intensity and profitability potential of an industry by examining five forces: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and rivalry among existing competitors.
finance · intermediate
A valuation method that estimates a company's worth by examining the prices paid, and the valuation multiples implied, in prior comparable mergers and acquisitions transactions. Because acquisition prices often include a control premium not present in ordinary public trading, this method typically produces higher valuations than comparable company analysis.
organizational · intermediate
A conflict of interest that arises when one party, the agent, is empowered to make decisions on behalf of another party, the principal, but the agent's own interests are not perfectly aligned with the principal's, creating a risk that the agent will act in their own interest at the principal's expense. The relationship between corporate managers and shareholders is a classic example studied extensively in corporate governance and finance.
finance · intro
Also called: PE
Investment capital, typically pooled from institutional and wealthy individual investors, that is used to acquire ownership stakes in private companies, or to take public companies private, with the goal of improving performance and later selling the stake at a profit. Private equity firms frequently use significant borrowed capital to fund acquisitions, a strategy known as a leveraged buyout.
governance · intermediate
A document a public company is required to distribute to shareholders ahead of a shareholder meeting, disclosing matters to be voted on, including director elections and executive compensation, and providing the information shareholders need to cast an informed vote, often by proxy rather than in person.