Germany: +49 921 788979-20 / Georgia: +955 599 578 680 or +995 32 2365156

Glossary

Overview of abbreviations and concepts

 

Closing

Closing describes executing the planned transaction of selling or acquiring a company.

 

Due Diligence

Due Diligence describes the "required thoroughness" that is investigated when buying or selling company investments or before making an acquisition. Due diligence investigations include a special, systematic strengths/weaknesses analysis of the object of purchase, an analysis of the risks involved and a consolidated valuation of the business.

 

Financial investor

The financial investor acquires shares in a company with the aim of increasing his invested capital. Usually his investment is short-term due to focussing on the increase in value of the company.

 

Letter of Intent (LOI)

A Letter of Intent is a non-binding declaration of a contracting party's intentions that expresses an interest in negotiations and signing a contract. There are no legal claims connected with a letter of intent.

 

MBI

A Management Buy In (MBI) is when a company is taken over by external management or if the take-over is forced by independent management by means of an investor.

 

MBO

The term Management Buy Out (MBO) describes the take-over of a company or part of it by the previous management by acquisition.

 

PE

Private Equity (PE) is the general term for equity capital that is obtained from private and institutional investors and usually invested in companies not listed on a public stock exchange.

 

Spin-Off

In terms of a company division, a Spin-Off describes the de-merger of a department. This refers to founding a new company by breaking up a part of the current company.

 

Strategic Investor

A strategic investor invests in companies to support his own strategic direction and to attain synergy effects. These investments are connected with long-term expectations.

 

VC

Venture Capital (VC) or risk capital is brought into the company as fully liable equity or as a means of finance that is similar to equity capital (e.g. mezzanine capital), thus making VC an area of PE.  

Service and Support

Our Service for you

GrowGeorgia and SCS/EMC - your consultants for corporate transactions in and out of Georgia. Our support throughout the whole process includes

  • Arranging visits
  • Negotiation support
  • Company analyses
  • Organization of legal and business consulting
  • Preparation of documents and dealing with government agencies
  • Coaching for final negotiations

Read more...

Benefit from our 20 years of experience in this field. Talk to us!

Contact in Georgia: 

EMC - Evaluation and Management Consulting Ltd
2 Dolidze St.
0171 Tbilisi
Georgia

Phone +955 599 578 680
Phone/Fax +995 32 2365156

growgeorgia@emc.com.ge
www.emc.com.ge
 

Contact in Germany:

SCS Beratungsgesellschaft mbH
Kanzleistrasse 6
D-95444 Bayreuth
Germany

Phone +49 921 788979-20
Fax +49 921 788979-30