equity ratchet

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • ratchet — A mechanism by which the successful performance of management reflected in growth in the value of a company is rewarded by progressively increasing their share of the equity. Easyform Glossary of Law Terms. UK law terms. ratchet …   Law dictionary

  • equity investor loan — A subordinated loan provided by the equity/institutional investors. Its terms are similar to mezzanine debt (for example, there is no margin ratchet, while there is a single bullet repayment and a similar term). Related links creditors voluntary… …   Law dictionary

  • ratchet —  Incentive system where management increases its equity in a company if the firm does well …   American business jargon

  • performance ratchet — Also known as equity ratchet. A common feature of private equity transactions, designed as an incentive for owner managers. The effect of the ratchet is to increase the amount of equity held by managers if certain performance targets are reached …   Law dictionary

  • Outline of finance — The following outline is provided as an overview of and topical guide to finance: Finance – addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • Cliquet — A cliquet option or ratchet option is an exotic option consisting of a series of consecutive forward start options.[1] The first is active immediately. The second becomes active when the first expires, etc. Each option is struck at the money when …   Wikipedia

  • Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… …   Wikipedia

  • Acquisition par emprunt — Leveraged buyout Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l… …   Wikipédia en Français

  • LBO, Buyout — Leveraged buyout Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l… …   Wikipédia en Français

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