Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 5 terms
Buying another business — one of the ways management can deploy the cash a company generates.
Most destroy value. Check the price paid, how it was funded, the goodwill created, and what happened to the last five before judging the sixth.
The cash flow bucket covering money spent on or received from long-term assets such as plant, equipment and acquisitions.
Negative is the normal state for a company still building something. Persistently positive usually means assets are being sold, which flatters this year and shrinks the next one.
Growth produced by the business the company already owned, excluding revenue consolidated from acquisitions made during the period.
The like-for-like number. A company reporting 18% having bought a third of the increase did not grow 18%.
Separating a division into an independently listed company, with shares issued to existing holders.
No premium is paid and each business gets its own multiple, which is why the record is better than for acquisitions.
Book value with goodwill and intangible assets removed.
The conservative floor. Goodwill is the premium paid in past acquisitions, and it goes if those disappoint.