This is the portion of the purchase price that is given to the target in the form of cash.

Working capital is a measure of a company’s operational liquidity. It’s calculated as current assets minus current liabilities.

ROI is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.

In M&A, goodwill is an intangible asset that arises when a buyer acquires an existing business and pays more than the fair market value of the net assets.

Financial due diligence is the process of reviewing the financial health of a target company. It includes reviewing financial statements, assets, liabilities, cash flow, and more.

Equity value is the value of a company available to owners or shareholders. It is calculated by subtracting debt and other liabilities from the company’s total value.

Enterprise value (EV) is a measure of a company’s total value, including market capitalization, short-term and long-term debt, and any cash on the company’s balance sheet.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a measure of a company’s overall financial performance and is used as an alternative to net income in some circumstances.

Capital structure refers to the mix of debt and equity financing that a company uses to fund its operations and growth.

CapEx is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.