Glossary

Valuation

Valuation is the English term for a company valuation. This is calculated, for example, using the discounted cash flow method (see also Discounted Cash Flow) or with the help of multiples (see also Multiple Valuation).

VC

VC is the abbreviation for venture capital. Venture capital is bundled by venture capital companies and invested in start-ups with high growth potential.

VDR

The term VDR is the abbreviation for Virtual Data Room. This is a virtual data room that is used in the context of due diligence (see also Due Diligence).

Vendor assist

Vendor Assist is described as the examination of strategic options in volatile and difficult markets. The outcome of the assessment may lead to a decision whether to sell the business in question. 

Vendor Assist Products

Information packages provided by the seller or an M&A advisor to support due diligence are called Vendor Assist Products. Vendor Assist Products include financial analysis, for example.

Vendor due diligence

Vendor Due Diligence is a company audit (see also Due Diligence) in which the seller has his own company audited. A vendor due diligence often takes place when the seller wants to spare the prospective buyer the costs of a due diligence or when the seller is not sure about the circumstances of his company. A Vendor Due Diligence can be performed both as an informal service and with a formal guarantee of accuracy.

Vendor loan

The loan from a seller to the buyer of a target company is called a vendor loan.

Venture capital

Venture Capital (VC) is a financial instrument used by venture capitalists (venture capital companies) to invest in innovative start-ups.

Venture capital firm

A venture capital firm is a company that sets up venture capital funds (see also Venture Capital).

Venture capital fund

A venture capital fund is a fund that invests in innovative start-ups. The funds in the venture capital fund are provided by so-called limited partners such as banks, pension funds and insurance companies or wealthy private individuals.

Vendor Loan

A vendor loan is an interest-bearing loan from the seller to the buyer as a building block for financing the acquisition. The terms for this are typically between 1 and 3 years, although 5 years are also possible. The loans are often secured with no or only secondary collateral and serve, among other things, to increase the commitment of the seller.

Virtual data room

A Virtual Data Room (VDR for short) is a virtual data room that is used in the context of due diligence (see also Due Diligence).