Break-up Fee

This is a penalty set in takeover agreements, to be paid if the target backs out of a deal to sell itself.




Bank Guarantee

This is a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss.




Stock Consideration

This is the portion of the purchase price given to the target in the form of shares of the acquirer’s stock.




Share Issuance Discount

This is any discount (if any) to the current market price that will be used to determine the number of shares the target receives.




Share Exchange Ratio

This is the offer price divided by the acquirer’s share price.




Sensitivity Analysis

This is a method of testing how sensitive certain outputs in a financial model are to changes in certain assumptions.




Revenue Enhancements

These are increases in revenue that are expected due to cross-selling, up-selling, pricing changes, etc.




Restructuring Charges

These are any fees or charges related to early debt repayments that are part of a restructuring.




Purchase Price Allocation

This is the breakdown of the total purchase price between net identifiable assets and goodwill.




Pro Forma Shares Outstanding

This is the number of shares outstanding after the transaction has closed and additional equity has been issued.