Difference between the bid and offering price of a share
Concept by which a new company is built, often in a fragmented market: an existing business serves as the platform and is complemented by add-on acquisitions to form a significantly larger entity.
Profit-sharing for investment managers linked to the performance of investments. This usually subject to a minimum return target and is only paid at a fixed ratio upon exceeding that performance target.
Indicator used to determine a company‘s financial position and frequently also its earnings position: the flows of funds within a period resulting from the difference between the inflow and outflow of cash.
End of subscription period for a (private equity) fund.
A third-party fund that co-invests (usually by a fixed percentage) alongside another investor; at Deutsche Beteiligungs AG: the funds managed by Deutsche Beteiligungs AG.
Standards for the management and supervision of companies defining the spheres of accountability for Shareholders, Management Boards and Supervisory Boards of public companies. These standards aim at early identification of undesirable developments and the prevention of critical situations in a company.
Directors and Officers’ Liability Insurance; an insurance for members of the Supervisory Board and Board of Management of legal entities covering legal liabilities for wrongful acts committed in their capacities as Management and Supervisory Board members.
German stock market index; benchmark for the development of the capital market
Sum of investment opportunities offered to an investment company. Deutsche Beteiligungs AG endeavours to have early knowledge of investment opportunities; it uses its closely-knit network to that end.
Consultant to a securities issuer. Designated sponsors ensure a minimum amount of liquidity of a certain security traded on the stock exchange by inputting immediately marketable buy or sell offers with a low spread into the trading system for that security, consecutively or upon request.
Discounted cash-flow method
Procedure used to measure the enterprise value, determined by the sum of discounted cash flows expected in the future. Discounting is performed using an interest rate for a long-term risk-free investment plus a risk premium.
An analysis of the earnings position and business situation as well as recent financial statements by which an investor wishes to obtain background information on a targetcompany in order to arrive at an informed purchase decision.
Abbreviation for earnings before interest and taxes. EBIT is an earnings indicator, determined from the net income before taxes, the net interest and extraordinary earnings. Eliminating these factors provides a more comparable statement on a company’s opera-tive performance, independent of its individual equity structure.
The residual interest in the assets of a company after deducting all its liabilities.
The sale of an investment from a financial investor’s portfolio. Principally, there are three exit routes: trade sale (sale to another company), initial public offering (stock market listing) or secondary buyout (sale to another financial investor). Deutsche Beteiligungs AG considers all three variants in realising its investments.
Expansion financing investment
Minority investment in an enterprise, generally with the objective of preparing for a public offering.
Efforts to communicate the corporate information required to assess a certain security to all market participants simultaneously.
The current amount for which an investment could be exchanged between knowledgeable, willing and independent parties.
The sum of all shares of a company not held in firm hands, or, in other words, the marketable portion of a company’s stock. Funds of FundsInvestment funds that invest in other funds.
The soliciting of equity commitments to a private equity fund.
Segment governed by the statutory minimum requirements of the Official or Regulated Unofficial Market.
International Financial Reporting Standards; accounting standards that have been obligatory for quoted companies in the European Union since 2005. A major difference compared with the German accounting standards (HGB) is the valuation of financial assets by their fair value at the respective balance sheet date. This value may exceed their historical acquisition cost.
Activities directed toward promoting relationships between a company and its existing or potential investors.
In a syndicate of investment companies generally the investor holding the largest share, who takes charge of organizing the financing and coordinating the transaction. In a fund investment, the investor holding the largest interest.
Period of time during which existing shareholders commit not to sell shares from their holdings following an IPO. This is aimed at protecting new shareholders from downslides in stock prices caused by the sale of large blocks of shares after a new issue.
Global private equity performance index; the LPX50 consists of the 50 largest quoted private equity companies worldwide, measured by their market capitalisation. The shares of Deutsche Beteiligungs AG are a constituent of the LPX50.
Mergers & Acquisitions; market for negotiating businesses or shares of businesses to buyers and sellers.
Current stock market value of a class of shares: number of issued shares multiplied by the current price.
Management buyout; the takeover of a company by managers presently employed by that company.
The market for investment transactions is divided into three segments: transactions with a value of less than 50 million euros are considered “small”; next comes the mid-market segment with transactions valued from 50 to 300 million euros; transactions with a value of more than 300 million euros form the upper market segment.
Multiples method Method used to value enterprises; determined by multiplying a relevant indicator (e.g. EBIT) by a multiple derived from current market prices. This multiple is calculated on the basis of the quotient derived from a peer group of companies and their respective earnings indicators.
Net asset value (NAV)
Value of all tangible and non-tangible assets of a company less its liabilities (equity); the net asset value per share is a key indicator used in assessing the value growth of a quoted private equity company.
(Amtlicher Markt) Primary tier of the German Stock Exchange that sets high standards for admittance.
Purchase of new shares without the employment of own capital; a shareholder sells exactly as many subscription rights in a regular capital increase as would be required to exercise the remaining pre-emptive rights and pay the issue price using the proceeds from the sale of the rights. After an Operation Blanche, the absolute amount of the shareholder’s investment in the shares of the respective company remains unchanged; his relative share of the capital stock, however, will decrease.
Also: co-investment fund. A third-party fund that co-invests (usually by a fixed percentage) alongside another investor; at Deutsche Beteiligungs AG: the funds managed by Deutsche Beteiligungs AG
A group of companies similar in terms of industry, structure, products and revenues, used for comparison purposes.
Here: all the holdings of an equity investment company.
Segment on the German Stock Exchange with high standards of transparency. Admission to the Prime Standard is a prerequisite for inclusion in one of the stock indices, such as the S-Dax.
Delisting of a formerly quoted company; also referred to as taking private.
Entry segment for newcomers to the stock exchange with less stringent admission conditions.
Return on equity
Indicator used in assessing the business performance of a company; the profit delivered to the owners is expressed as a percentage of the equity available at the beginning of a financial year.
S-Dax performance index
Selection index of the German Stock Exchange for smaller companies from classical sectors of the economy. Comes after the stocks indexed in the M-Dax and consists of 50 stocks admitted to the Prime Standard of the Official Market or Regulated Unofficial Market.
A kind of second management buyout: the financial investor and MBO managers sell to the next generation of managers and to a new private equity investor.
A silent partnership usually having a fixed term, fixed interest rate and defined performance- related components; not subject to public disclosure.
The splitting off of a division or subsidiary from a large corporation.
A security granting the purchase of a company’s stock at a fixed price (or a price determined on the basis of a certain scheme). At Deutsche Beteiligungs AG – similar to many other quoted companies – a part of the staff’s emoluments.
A record of performance by a company or an entrepreneur or manager.
Purchase price of the debt-free enterprise.
The restructuring of a business to achieve profitability again. In some cases, the business will start off anew with a new management and/or a revised product range.
The difference between the book value in conformity with the German Commercial Code (acquisition cost or lower) and the current market value.
Risk capital; mostly private capital provided to start-ups or emerging businesses.
Risk capital; mostly private capital provided to start-ups or emerging businesses.
A reduction in the value of assets; must be disclosed in the profit and loss account.
Electronic market trading system.