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The M&A world has a lot of abbreviations, all of which the advisors working in this field like to use. To not get overwhelmed by these terms or be confused what your investor or advisor is talking about on this page you will find the most common used abbreviations. If any is missing, be sure to let it know in the comments below!

APAAsset purchase agreement
BPBusiness plan
BSBalance sheet
BUBusiness unit
CAGRCompound annual growth rate
CAPEXCapital expenditures
CCCCash conversion cycle
CDDCommercial due diligence
CFCash flow
CGTCapital gains tax
CIMConfidential information memorandum
CITCorporate income tax
COCChange of control
COGSCost of goods sold
COSCost of sales
D&ADepreciation & amortization
DCFDiscounted cash flow
DDDue diligence
DIODays inventory outstanding
DPODays payable outstanding
DSODays receivable outstanding
DTADeferred tax asset
DTLDeferred tax liability
EBITEarnings before interest and taxes
EBITDAEarnings before interest, taxes, depreciation and amortization
ERPEnterprise resource planning
EVEnterprise value
FCFFree cash flow
FDDFinancial due diligence
FSFinancial statements
FTEFull time equivalent
FYFiscal year
GAAPGenerally accepted accounting principles
HOAHeads of agreement
HRHuman resource
ICInvestment committee or intercompany
IFRSInternational Financial Reporting Standards
IMInformation memorandum
IOIIndication of interest
IPOInitial public offering
IRSInternal revenue service
KPIKey performance indicator
LBLocked box
LBOLeveraged buy out
LOILetter of intent
LTMLast twelve months
MAManagement accounts
M&AMergers & Acquisitions
MACMaterial adverse change
MAEMaterial adverse event (or effect)
MBIManagement buy in
MBOManagement buy out
MOUMemorandum of understanding
MPManagement presentation
MRRMonthly recurring revenues
MTManagement team
NAVNet asset value
NBONon-binding offer
NDANon-disclosure agreement
NOPLATNet operating profit less adjusted taxes
NWCNet working capital
OPEXOperating expenses
PBTProfit before taxes
PEPrivate equity or Price-to-earnings
PFPro forma
PLProfit- and loss account
PMIPost-merger integration
PSAPurchase and sale agreement
Q&AQuestions & Answers
R&DResearch & Development
R&MRepair & Maintenance
RRRun-rate or recurring revenues
SLAService level agreement
SPAShare purchase agreement
SWOTStrengths, weaknesses, opportunities and threats
TDDTax due diligence or Technical due diligence
TSTerm sheet
TSATransitional service agreement
TTMTrailing twelve months
TWCTrade working capital
USPUnique selling point
VATValue added tax
VCVenture capital
VDDVendor due diligence
VDRVirtual data room
WACCWeighted average cost of capital
WCWorking capital

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