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Management Buyout Financing

Capital provided to facilitate the takeover of all or part of a business entity by a team of managers.
A private equity firm will often provide financing to enable current operating management to acquire or to buy at least 50 per cent of the business they manage. In return, the private equity firm usually receives a [...]

Management Company

The professional manager of a private equity fund or funds.

Management Fee

Compensation for the management of a venture fund’s activities, paid from the fund to the general partner or investment advisor. This compensation generally includes an annual management fee.

Management Fee

The management fee is used to provide the partnership with resources such as investment and clerical personnel, office space and administrative services required by the partnership.

Management Fees Offsets

The extent to which monitoring, transaction, and other portfolio company related expenses, paid to the General Partner are offset against management fees.

Management Team

The persons who oversee the activities of a venture capital fund.

Mandatory Redemption

A right of an investor to require the company to repurchase some or all of an investor’s shares at a stated price at a given time in the future. The purchase price is usually the Issue Price, increased by Cumulative Dividends, if any. Mandatory Redemption may be automatic or may require a vote of the [...]

Market Capitalization

The total dollar value of all of a company’s outstanding shares. It is calculated by multiplying the number of outstanding shares times the current market share price and is often referred to as market cap.
The total dollar value of all outstanding shares. Computed as shares multiplied by current price per share. Prior to an IPO, [...]

Market Standoff Agreement

Similar to Lock-Up Agreements and prevents selling company stock for number of predetermined days after a previous stock offering by the company.

Merchant Banking

An activity that includes corporate finance activities, such as advice on complex financings, merger and acquisition advice (international or domestic), and at times direct equity investments in corporations by the banks.

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