APA Asset purchase agreement

BP Business plan

BS Balance sheet

BU Business unit

CAGR Compound annual growth rate

CAPEX Capital expenditures

CCC Cash conversion cycle

CDD Commercial due diligence

CF Cash flow

CGT Capital gains tax

CIM Confidential information memorandum

CIT Corporate income tax

COC Change of control

COGS Cost of goods sold

COS Cost of sales

D&A Depreciation & amortization

DCF Discounted cash flow

DD Due diligence

DIO Days inventory outstanding

DPO Days payable outstanding

DSO Days receivable outstanding

DTA Deferred tax asset

DTL Deferred tax liability

EBIT Earnings before interest and taxes

EBITDA Earnings before interest, taxes, depreciation and amortization

ERP Enterprise resource planning

EV Enterprise value

FC Forecast

FCF Free cash flow

FDD Financial due diligence

FS Financial statements

FTE Full time equivalent

FY Fiscal year

GAAP Generally accepted accounting principles

HOA Heads of agreement

HR Human resource

IC Investment committee or intercompany

IFRS International Financial Reporting Standards

IM Information memorandum

IOI Indication of interest

IPO Initial public offering

IRS Internal revenue service

JV Joint-Venture

KPI Key performance indicator

LB Locked box

LBO Leveraged buy out

LFL Like-for-like

LOI Letter of intent

LTM Last twelve months

MA Management accounts

M&A Mergers & Acquisitions

MAC Material adverse change

MAE Material adverse event (or effect)

MBI Management buy in

MBO Management buy out

MOU Memorandum of understanding

MP Management presentation

MRR Monthly recurring revenues

MT Management team

NAV Net asset value

NBO Non-binding offer

NDA Non-disclosure agreement

NOPLAT Net operating profit less adjusted taxes

NWC Net working capital

OPEX Operating expenses

PBT Profit before taxes

PE Private equity or Price-to-earnings

PF Pro forma

PL Profit- and loss account

PMI Post-merger integration

PSA Purchase and sale agreement

Q&A Questions & Answers

R&D Research & Development

R&M Repair & Maintenance

RR Run-rate or recurring revenues

SLA Service level agreement

SPA Share purchase agreement

SWOT Strengths, weaknesses, opportunities and threats

TDD Tax due diligence or Technical due diligence

TS Term sheet

TSA Transitional service agreement

TTM Trailing twelve months

TWC Trade working capital

USP Unique selling point

VAT Value added tax

VC Venture capital

VDD Vendor due diligence

VDR Virtual data room

WACC Weighted average cost of capital

WC Working capital

YTD Year-to-date

YTG Year-to-go