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

M&A Mergers & Acquisitions

M&A services often cover the holistic, strategic planning of corporate sales and purchases as well as their tactical and operative implementation.

MBI (Management buy-in)

External management takes over shares in a company or parts of a company. This often takes place together with private equity companies.

MBO (Management buy-out)

Incumbent, non-participating management buys into a company as shareholders with the aid of private equity companies or through loan financing. Either through a capital increase and/or through the purchase of shares from the senior shareholders.

Mezzanine capital

Corporate financing that is part equity and part debt (from the Italian expression for “in-between storey”). This form of financing usually comprises lower-priority debt (fixed interest) and equity capital (shares or subscription rights for shares). In Germany the following instruments are used: Seller’s notes, participation rights, silent holdings, profit participation loan, shareholders’ notes and other subordinated debt.

Multiples valuation

Valuation methods which are geared to the total value of the company and equity capital. This includes P/E (price/earnings), EBIT, EBITDA, EBITDAR (R stands for rent) and sales multiples. These are generally determined for similar companies (peer group of comparable companies and/or transactions) so as to arrive at an estimated valuation on the basis of ratios. Likewise such a multiples valuation is conducted for comparable transactions.

Multiplier arbitrage

Describes the possibility to sell a company – that had been bought at a certain (EBITDA) multiplier – upon exit at a higher multiplier. This can, among other things, be due to economic effects, the impact of additional absolute size of EBITDA (scale arbitrage) or higher debt multipliers.