Every day counts - Deutsche Beteiligungs AG

MBO
Multiples method
Official Market
Parallel fund
Peer group
Portfolio
Prime Standard
Private equity
Public to private
Regulated Unofficial Market
Return on equity
S-Dax performance index
Secondary buyout
Silent partnership
Spin-off
Stock option
Track record
Trade sale
Turn-around
Valuation reserves
Venture capital
Xetra
Deutsche Beteiligungs AG · Annual Report 2002/2003
Glossary
Management buyout; the takeover of a company by managers presently employed by
that company.
A procedure used to measure the enterprise value; determined by multiplying a relevant
performance indicator (e.g. earnings) by a multiple derived from current market prices.
This multiple is determined from the quotient of a peer group and its respective performance
indicators.
(Amtlicher Markt) Primary tier of the German Stock Exchange that sets high standards
for admittance.
Also: co-investment fund. A third-party fund that co-invests (usually by a fixed percentage)
alongside another investor; at Deutsche Beteiligungs AG: the funds managed by
Deutsche Beteiligungs AG
A group of companies similar in terms of industrial sector, structure, products, and sales,
used for comparison purposes.
All the holdings of an investment company.
Segment on the German Stock Exchange with high standards of transparency. Admission
to the Prime Standard is a prerequisite for inclusion in one of the stock indices, such as
the S-Dax.
Capital provided to non-quoted companies for the mid to long-term.
Delisting of a formerly quoted company; also referred to as taking private.
(Geregelter Markt) Entry level of the German Stock Exchange with only few formal
admission standards.
Indicator used in assessing the business performance of a company; the profit delivered
to the owners is expressed as a percentage of the equity available at the beginning of a
financial year.
Selection index of the German Stock Exchange for smaller companies from classical
sectors of the economy. Comes after the stocks indexed in the M-Dax and consists of
50 stocks admitted to the Prime Standard of the Official Market or Regulated Unofficial
Market.
The investment company and MBO managers sell to the next generation of managers.
A silent partnership usually having a fixed term, fixed interest rate and defined performance-related
components; not subject to public disclosure.
The splitting off of a division or subsidiary from a large corporation.
A security granting the purchase of a company’s stock at a fixed price (or a price determined
on the basis of a certain scheme). At Deutsche Beteiligungs AG – similar to many
other quoted companies – a part of the staff’s emoluments.
A record of performance by a company or an entrepreneur or manager.
An exit variant: the sale of an investment to a company operating in the same branch
of industry that wants to complement its portfolio, expand its market presence or
achieve other strategic goals.
The restructuring of a business to achieve profitability again. In some cases, the business
will start off anew with a new management and/or a revised product range.
The difference between the book value in conformity with the German Commercial
Code (acquisition cost or lower) and the current market value.
Risk capital; mostly private capital provided to start-ups or emerging businesses.
Electronic market trading system.
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