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

Secondary Buyout

An exit possibility for financial investors: The shares are sold to another financial investor, who in turn supports and promotes buy-and-build projects or further organic growth.

Seed capital financing

Financing of a business idea, during its development phase and implementation through to realisable results, so as to achieve a “prototype” on the basis of which a business concept is elaborated for the foundation of a new company.

Senior debt

Usually long-term bank loans whose collateralisation has priority in the ranking of creditors.

Share Deal

Purchase of business shares in a company (in contrast to an asset deal).

Silent Partnership

A holding that does not require entry on the Commercial Register. This usually has a pre-determined interest rate, a specific term and earnings-dependent remuneration. The “typical silent share holding” participates in the profit and loss, the “atypical dormant company” also participates in the total appreciation in business assets.

Spin-off

A business unit or an operating facility, which does not necessarily have to be legally independent, becomes an independent entity. This may take place in the form of an IPO, whereby the shareholders of the stock corporation receive free shares or subscription rights, or in the framework of a purchase by investors.

Sweet Equity

Management remuneration with a NewCo foundation as MBO/MBI. Here, the participating management receives equity capital at a lower purchase price than the other shareholders. Generally, the shares are issued at a nominal price or with a low agio. Also known as sweet equity.