Consulting Services - PMR

Terms glossary

Acquisition
The process resulting in the stock or assets (organised part) of a company being transferred to an investor.
Adjusted/Normalised Accounts
Recast historical financial statements reflecting exclusion of elements not related to the ongoing business.
Benchmarking
Comparison of one's offer and market position with the competitors and help evaluate the competitive assets and disadvantages through the set of matrix-based tools.
Case Study
A complete and exhaustive analysis of one special phenomenon such as a single product, event, market phenomenon.
Cash-out
Partial or full exit of an owner from a business, selling shares in exchange for cash payment.
Carve out
Partial sale of daughter company by a mother company (partial spin-off).
CL
Confidentiality Letter - a bilateral or multilateral contract between parties that states there is a confidential relationship between parties, i.e. confidential data, information disclosed etc.
DCF
Discounted Cash Flows, a valuation method, that helps to estimate the level of investment attractiveness.
Deal Breaker
Issue that prompts one party to discontinue a transaction process as parties cannot agree upon it.
Desk research
A research technique consisting of the analysis of already available data from various sources, their mutual verification and consolidation. This can constitute an independent research technique or be the initial phase of the project preceding the phase of collecting primary data. Desk research is an important part of the PMR Market Insight methodology used by PMR Consulting.
Distributor search
A precise specialist service offered to those looking to optimise their cost base and increase sales volume to achieve higher contribution by spinning off part or all of the sales process to existing distributors.
Due Diligence
An investigation of a target company, usually from financial, tax, legal, environmental, technological and commercial perspectives, undertaken prior to signing a Share Purchase Agreement.
Earnout
Provision agreed with an investor, that the seller is entitle to some additional future payments subject to company financial performance.
EBITDA
Earnings before interest, taxes, depreciation and amortisation.
ESOMAR
European Association of Opinion and Marketing Research Professionals is dedicated to helping professionals develop expertise in creating, collecting, and analyzing information.
Equity Ticket
Minimum equity engagement in one separate transaction acceptable by an investor.
Executive summary
A concise summary of the research results including the list of the most important results, main conclusions and recommendations. The included information is unambiguous, clear and transparent. The executive summary usually represents an independent part of the general research report.
Expansion Capital
Capital obtained in form of equity or debt to be used for company development.
Expert opinion survey
An interview with a respondent who has vast knowledge about the research subject. The participants of expert opinion surveys may include professionals and specialists from the specific industry, scientists etc.
Financial Investor
Investor often not focus on one particular industry but rather looking for opportunities that will generate the required return in the future. Opposite of an industry player.
Focus Group Interview (FGI)
A technique of qualitative research consisting of discussion of 6-12 participants managed by a trained moderator in line with the research scenario (guide). The focus group usually takes place in a focus studio i.e. a special room equipped with a two-way mirror and equipment for audio and video recording. Focus interviews are used primarily to test product concepts and analyse the brand image.
Focus studio
A room adopted for conducting focus group interviews (FGI) consisting of two separate room divided by a two-way mirror. One room is used for conducting the survey with a group of respondents, and is equipped with audio and video recording devices. The second room allows the customer to conduct observations and control the research.
Hostile Takeover
An acquisition attempt that is resisted by the targeted company.
In-depth interview
A qualitative technique of conducting interviews resembling a casual conversation. Such interviews usually proceed in line with the general structure, and it is possible to change the order of asked questions or modify them depending on the course of conversation. The goal of the interviews is to obtain in-depth information.
Information Memorandum
A document describing all material company activity areas, delivered to potential investors to verify interest.
Investor
A party willing to invest funds in a company.
IPO
Initial Public Offering, company entering the stock exchange for the first time.
LBO
Leveraged Buyout: the acquisition of a company supported with significant debt financing to allow the investor to make larger acquisitions than they can afford or want to cover with equity.
LOI
Letter of Intent: a letter describing the proposed major aspects of an acquisition, including price offer, usually subject to due diligence results.
Market Insight
Is a methodology developed and used by PMR to assist in the preparation of reports and industry analysis. It defines the ways in which data should be collected and outlines the methods that are to be used to analyse the information gathered. Using this methodology, we are able to gain the most accurate and up-to-date view of the market in question. Since 1995, PMR has been preparing industry analysis on Central Eastern European (CEE) markets. Analyses are conducted on the basis of information from existing sources: statistics, sector data (the specialist press, the internet), general and official sources, and our own databases, as well as independent primary research. The range of sources we use is tailored to each project individually.
MBO
Management Buyout: a takeover transaction where management members buy company shares from current shareholders.
Merger
Combining of two or more companies. The transaction is usually settled by shares exchange (share swap).
Methodology
General principles regarding the manner of conducting a specific research project usually presented in a descriptive form. The research methodology description usually includes detailed goals of the research, description of applied research tools and techniques, the selection method and the size of the survey sample. The research methodology description is included as a standard both in the research offer and the research report.
NBA
Non-binding Agreement describing the transactions conditions and how the transaction will be executed.
NBO
Non-binding Offer, see LOI.
NDA
Non-disclosure Agreement, see CL.
Net assets
Total assets less total liabilities.
NPV
Net Present Value: the value of a project comparing initial capital expenditure and discounted future cash flows from the project.
Pitch book
A document presenting potential targets that might be of interest to an investor.
Private Equity
Equity Capital raised among individuals and institutional investors to conduct buyouts of private companies or public companies and carry out delisting.
Quality control
Activities aimed at assessing the reliability of interviews conducted by interviewers. The most frequent form of controlling interviewers is verification whether they conducted an interview with a given respondent and whether the interview was conducted appropriately. Logical cohesion of the obtained data is also subject to verification.
Questionnaire
A structured set of questions for respondents used in a quantitative research including precisely formulated questions usually with instructions and guidelines for the interviewer, and the list of possible answers (cafeteria).
Representative sample
A randomly selected sample, which allows to draw conclusions regarding whole population it represents with a certain probability.
Respondent
A participant of the research, who is a source of the research information. Could be a natural person or representative of companies that participate in various types of interviews.
RFQ
A research inquiry sent by the client to the agency. It usually includes initial information on the planned project i.e. description of the problem, the goal of the study and possibly the scope of activities to be performed by the agency. A more detailed brief may contain the complete methodology of the planned research.
Sample
A group of individuals drawn or selected based on detailed procedures from the whole group of people or companies covered by an individual research.
Sampling
Sampling consists of selecting, in a specific manner, individuals from the whole population, for example consumers or enterprises, which form a statistical sample. Research on appropriately selected samples allows gaining certain knowledge about the entire population.
SCIP
Strategic and Competitive Intelligence Professionals is a global organisation for those involved in creating and managing business knowledge. It is dedicated to disseminating competitive intelligence and engaging decision makers in a productive dialogue that creates organisational competitive advantage.
Screener
An initial questionnaire used in the respondent recruitment process. A screener usually includes several vital questions regarding criteria that a person covered by the research should meet. Most frequently these are questions allowing to define the relationship between a given person and the subject of the planned research regarding usage of a given product or service, profession etc.
Sourcing
Sourcing is a complex process involving thorough analysis of the client's cost base (CGUs) and identification of areas where cost optimisation will provide the highest profitability upside.
SPA
Share Purchase Agreement: final document concluding transaction condition, upon signing it payment for the transaction should be settled and transaction closed.
Spin-off
Separation of business division into a new company, usually it is expected that a spun-off company should represent more value than as a part of a larger group.
Strategic Investor
An industry player interested in expansion via acquisitions usually due to limitations in developing organically or due to interest in activity diversification.
Takeover
See Acquisition.
Teaser
A short few-page document describing the target company prepared to attract potential investors, might be a blind teaser, i.e. not disclosing the company name.
Telephone interview
An interview conducted during a phone call. During the interview the interviewer reads questions included in the interview questionnaire to the respondent and writes down answers, the interviewer can also provide additional explanations regarding the goal of the research.
Term Sheet
See NBA.
Transcription
A written record of conducted qualitative interviews including written down opinions of all interview participants previously recorded by audiovisual equipment. Transcriptions of conducted interviews are the fundamental material analysed by the researcher during preparation of the research report.
Vendor
Party selling a company or organised part of the business.
Venture Capital
Equity Capital provided to small companies, start-ups to finance development and growth; expected return is usually higher than in case of Private Equity financing as Venture Capital investments incorporate more risk.