Glossary

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# A B C D E F G H I JK L M N O P Q R S T U V W XYZ

Capital Gain

The profit attained in the sale of business shares compared to the value when shares were taken up.

Carried Interest ("Carry")

Share of the fund management company and/or the investment managers in the financial success of the fund vehicle and/or portfolio companies.

Cash Flow Deal

Classic form of “management buyout” in which the purchase price and the acquisition loan interest are predominantly financed with the liquid funds generated by a company.

Cash Offer

Cash offer for the shares or assets of a company.

Closing

Signing of the company sale and purchase agreement and subsequent completion of the previously signed transaction. The management of and responsibility for the company are thus transferred to the buyer.

Conditions Precedent

Conditions that have to be fulfilled before an agreement becomes effective. Often found in purchase and loan agreements.

Corporate Finance

  1. English definition: Possibilities and basic principles for the provision of means of financing for companies
  2. Category of investment banking. Activities in corporate banking such as valuation, purchase and sale of companies (or business units) and shareholdings, stock issues and financing of take overs.

Covenants

Integral part of a contract which obligates a party to comply with certain positive or negative targets. A violation of covenants leads to contract penalties. These clauses are generally found in loan agreements.