BOOK REVIEW

Abstract

All disciplines have their own jargon intended to promote accurate communication. Deal making is no exception. Forward and reverse triangular mergers, backend mergers, cash-out statutory mergers, asset purchases, and leveraged buyouts are just a few of the terms used to describe deal structures. Firms undergoing significant downsizing may engage in spin-offs, split-offs, and equity carve-outs. Firms attempting to discourage unwanted suitors may implement staggered board elections and dual class recapitalizations. Investment bankers routinely talk about enterprise values and multiples in estimating values for target firms. Although these terms are meaningful to some, they often are bewildering to others.

TOPIC: Private equity