M&A Glossary

Deal Structure & Tax

• Asset Deal vs Share Deal
• Bank Covenant
• Bpifrance
• ETA — Entrepreneurship Through Acquisition (Search Fund)
• Earnout (Deferred Consideration)
• Equity Rollover
• Leveraged Buyout (LBO)
• Net Debt
• PFU — Prélèvement Forfaitaire Unique (French Flat Tax)
• Purchase Price Allocation (PPA)
• Retirement Abatement (Abattement Départ à la Retraite)
• Sources & Uses
• Unitranche
• Vendor Loan (Seller Financing)

Due Diligence & Earnings Quality

• Customer Concentration
• Normalized Working Capital (NWC)
• Quality of Earnings (QoE)

Transaction Process

• Data Room (Virtual Data Room / VDR)
• Escrow
• Letter of Intent (LOI) / Heads of Terms
• Price Adjustment Mechanism
• Representations & Warranties (R&W) / GAP
• Vendor Due Diligence (VDD)

Valuation & Methodology

• Argos Mid-Market Index
• Comparable Companies Analysis (Trading Comps)
• Discounted Cash Flow (DCF)
• EBITDA Add-backs
• EV/EBITDA Multiple
• Enterprise Value vs Equity Value
• Net Asset Value (NAV) / Restated Asset Value
• Normalized EBITDA
• Practitioner's Method
• SME Discount / Illiquidity Discount
• Sensitivity Analysis
• Terminal Value
• Transaction Multiple
• WACC — Weighted Average Cost of Capital

Value Creation & Portfolio

• 100-Day Plan (Post-Acquisition)
• EBITDA Bridge
• Value Creation Plan (VCP)