Created by: kirb
Number of Blossarys: 2
A document confirming the intent of an investor to participate in a round of financing for a company. By signing this document, the subject company agrees to begin the legal and due diligence process ...
The use of debt to acquire assets, build operations and increase revenues. By using debt, a company is attempting to achieve results faster than if it only used its cash available from pre-leverage ...
The purchase of a company or a business unit of a company by an outside investor using mostly borrowed capital.
Measurements of a company's debt as a multiple of cash flow. Typical leverage ratios include Total Debt / EBITDA, Total Debt / (EBITDA minus Capital Expenditures), and Senior Debt / EBITDA.
An amount owed by a company, including short-term and long-term liabilities. Short-term liabilities are debt that must be paid within 12 months, such as amounts owed to suppliers (accounts payable), ...
An ownership structure designed to limit the founders' losses to the amount of their investment. An LLC does not pay taxes, rather its owners pay taxes on their proportion of the LLC profits at their ...
A legal entity composed of a general partner and various limited partners. The general partner manages the investments and is liable for the actions of the partnership while the limited partners are ...