Accretion / dilution
The estimated increase or decrease in a buyer's per-share earnings after a transaction.
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Module 13
Investment Banking Glossary
Search concise definitions for capital structure, valuation, private markets, credit and project-finance terminology.
34defined terms
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Basis point
One hundredth of one percentage point; 100 basis points equals 1%.
Related Matchpoint service →Bullet maturity
Principal repaid mainly or entirely at the final maturity date.
Related Matchpoint service →Capital stack
The ordered layers of debt and equity funding a company or asset.
Related Matchpoint service →Cash sweep
A requirement to use defined excess cash to repay debt early.
Related Matchpoint service →Covenant
A contractual promise, restriction or financial test in financing documents.
Related Matchpoint service →Coupon
The stated interest payment on a bond or debt instrument.
Related Matchpoint service →DCF
A valuation method discounting forecast cash flows to present value.
Related Matchpoint service →DSCR
Cash flow available for debt service divided by scheduled debt service.
Related Matchpoint service →DPI
Distributions to paid-in capital; cash returned by a fund relative to contributed capital.
Related Matchpoint service →EBITDA
Earnings before interest, tax, depreciation and amortization; a commonly used operating-profit measure with limitations.
Related Matchpoint service →Enterprise value
Value of the operating business attributable to debt and equity capital providers.
Related Matchpoint service →Equity value
Value attributable to common and other equity holders after relevant debt-like claims and adjustments.
Related Matchpoint service →Financial close
The point when financing agreements are effective and conditions to funding are satisfied or waived.
Related Matchpoint service →Gross IRR
Internal rate of return before specified fund-level fees, carried interest and expenses.
Related Matchpoint service →Intercreditor agreement
An agreement governing priority, enforcement and other rights among creditor classes.
Related Matchpoint service →IRR
The discount rate that sets the net present value of dated cash flows to zero.
Related Matchpoint service →Leverage
Use of debt or other fixed claims within a capital structure or investment.
Related Matchpoint service →LLCR
Net present value of cash available for debt service over the loan life divided by outstanding debt.
Related Matchpoint service →MOIC
Multiple of invested capital; total value or proceeds divided by invested capital.
Related Matchpoint service →Net debt
Interest-bearing debt less cash and cash equivalents, subject to transaction-specific adjustments.
Related Matchpoint service →Net IRR
Investor IRR after the fund-level fees, expenses and carried interest included in the calculation.
Related Matchpoint service →Non-recourse
Repayment is limited primarily to specified project assets and cash flows, subject to the actual documents.
Related Matchpoint service →Offtake agreement
A contract governing the purchase of a project's output or capacity.
Related Matchpoint service →PIK interest
Interest paid by adding it to principal or issuing additional debt rather than paying cash.
Related Matchpoint service →Pre-money valuation
Equity value immediately before a financing round.
Related Matchpoint service →Post-money valuation
Equity value immediately after including the new financing, under the stated convention.
Related Matchpoint service →Security
Assets, rights or shares granted to support creditor enforcement and recovery.
Related Matchpoint service →Seniority
Contractual, structural or legal priority among claims.
Related Matchpoint service →SPV
A special-purpose vehicle formed for a defined transaction, project or asset pool.
Related Matchpoint service →TVPI
Total value to paid-in capital; distributions plus residual value divided by contributed capital.
Related Matchpoint service →Unitranche
A single loan combining economics that might otherwise sit in separate senior and junior tranches.
Related Matchpoint service →WACC
Weighted average cost of debt and equity capital under stated assumptions.
Related Matchpoint service →Yield to maturity
The yield implied by price and contractual cash flows if held to maturity and assumptions are met.
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Module 13 of 15
