19 Terms
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Venture capital
Industry: Financial services
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Venture capital
liquidation
Financial services; Venture capital
Sale of the assets of a portfolio company to one or more acquirers when venture capital investors receive some of the proceeds of the sale.
liquidation preference
Financial services; Venture capital
The right to receive a specific value for the stock if the business is liquidated.
liquidity event
Financial services; Venture capital
The way in which an investor plans to close out an investment. Liquidity event is also known as exit strategy.
lock-up period
Financial services; Venture capital
The period an investor must wait before selling or trading company shares subsequent to an exit -- usually in an initial public offering the lock-up period is determined by the underwriters.
management buy-in (MBI)
Financial services; Venture capital
Purchase of a business by an outside team of managers who have found financial backers and plan to manage the business actively themselves.
management buy-out (MBO)
Financial services; Venture capital
Term used for the funds provided to enable operating management to acquire a product line or business, which may be at any stage of development, from either a public or private company.
leveraged buy-out (LBO)
Financial services; Venture capital
Acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business.
