Glossary (Me - Z)

See Glossary (A - Ma) for additional terms.

Mergerll
l

See "Mergers/Acquisitions"
Mergers/Acquisitionsl
l

Legal combination of two or more organizations into one business unit.

See Creating Your Pitch: Exit Strategy.
Milestonesl
l

Specific measurable accomplishments that investors will use to evaluate the company's future progress.

See Creating Your Pitch: Accomplishments, Use of Funds, and Milestones.
Multiplesl
l

See "Valuation multiples"
Openingl
l

The introductory segment of an investment presentation

See Creating Your Pitch: Opening.
Operating profitl
l

A measure of a company’s earnings power form ongoing operations, equal to earnings before deduction of interest payments and income taxes. Also called operating income or EBIT (earnings before interest and taxes).

See Creating Your Pitch: Business Model and Financial Projections.
Pitchl
l

Concise but dynamic oral introduction to a company to catch the attention of investors. This comes from that moment when an entrepreneur traps an investor on the elevator and delivers his or her sixty second pitch on why they should invest.

See Creating Your Pitch.
Pricel
l

The sum of money (or equivalent) for which something is bought or sold. While tradition held that it was the amount paid by the buyer, the government now leans toward the view that it is the amount received by the seller at his/her plant the price paid by the buyer minus transportation cost.
Probleml
l

See "Problem and Solution"
Problem and Solutionl
l

An effective way to describe your products and services.

See Creating Your Pitch: Problem and Solution/Products and Services.
Productsl
l

See "Products and Services"
Products and Servicesl
l

The goods and services that consumers are able to purchase.

See Creating Your Pitch: Problem and Solution/Products and Services .
Profitl
l

What results from revenues when all expenses have been paid.

See Creating Your Pitch: Business Model and Financial Projections.
Projectionsl
l

Forecasted financial information.

See Creating Your Pitch: Business Model and Financial Projections.
Publicly traded comparable(s)l
l

A company whose shares are sold to the public at large in accordance with the Securities and Exchange Commission (SEC) regulations.

See Creating Your Pitch: Exit Strategy.
Revenuel
l

The gross income received before any expenses are deducted.

See Creating Your Pitch: Business Model and Financial Projections.
Servicesl
l

See "Product and Services"
Solutionl

l

See "Problem and Solution"
Statement of cash flowsl
l

A summary of a company’s cash flow over a given period of time.

See Creating Your Pitch: Business Model and Financial Projections.
Teaml
l

See "Management"
Use of fundsl
l

How the company plans to use the money being raised.

See Creating Your Pitch: Accomplishments, Use of Funds, and Milestones.
Valuationl
l

This is a term for the value given to a private or public company; it is obtained most basically by multiplying the price per share (or most recent amount paid for shares) by the total number of shares outstanding.

See Creating Your Pitch: Business Model and Financial Projections.
Valuation multiplesl
.l

Statistics used to value a company. They can include price-to-earnings ratios (P/Es), for instance. Valuation multiples are usually industry specific. For instance, unprofitable Internet companies typically use sales multiples.

See Creating Your Pitch: Business Model and Financial Projections.

See Glossary (A - Ma) for additional terms.