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LOSSARY

ADDED VALUE

ANTI-DILUTION (FULL

A private equity management team’s exceptional

experience, know-how or valuable business contacts

which constitute a vital input for the growth of investee

companies.

Anti-dilution provisions in which the price at which the

anti-dilution instruments are converted is the lowest

price at which ordinary shares have been sold.

For example: in a prior round of financing which raised

capital at €2.00 per share, investors received full

ratchet anti-dilution protection. A subsequent round of

financing was consummated at €1.00 per share, and

the early round investors therefore had the right to

convert their anti-dilution instruments at the lowest (ie

€1.00) price.

ADJUSTABLE

RATE PREFERRED STOCK

Preferred stock whose dividend rate changes in

response to changes in a reference interest rate.

ADJUSTED PRESENT VALUE

MODEL

This model is similar to the ENTERPRISE DCF MODEL, with

the difference that the Adjusted Present Value model

separates the value of the company into two

components: the value of the company’s operations at

the cost of capital as if the company had no debt, plus

an additional element reflecting the impact on this

value of the tax savings related to leverage.

See

RATCHET)

ANTI-DILUTION PROVISIONS, ANTI-DILUTION (WEIGHTED

AVERAGE), BLANK CHEQUE PREFERRED STOCK, POISON PILL,

SHARK REPELLENT.

ANTI-DILUTION (WEIGHTED AVERAGE)

The London Stock Exchange’s market for new, fast

growing companies. AIM offers the benefit of operating

both an electronic quote and order trading facility. It

commenced trading in June 1995.

Anti-dilution provisions in which the price at which the

anti-dilution instruments are...