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Tag-Along Rights

Tag-Along Rights are contractual obligations that ensure minority shareholders can join in on the sale of shares by majority shareholders under the same terms and conditions. They protect minority shareholders from being left out of significant deals.

For example, if a majority shareholder decides to sell their shares to an external investor, tag-along rights allow minority shareholders to sell their shares at the same price and terms.

Talent Acquisition

Talent Acquisition refers to the process of finding, attracting, and hiring skilled individuals to meet organizational needs. It includes activities like sourcing, recruiting, interviewing, and onboarding employees.

For example, a company might have a dedicated talent acquisition team to strategically hire top talent in the tech industry to support its growth.

Target Market

A Target Market is a specific group of consumers identified as the recipients of a particular marketing campaign or product offering. Companies focus their marketing efforts on this group to optimize sales and engagement.

For example, a company selling eco-friendly products might identify environmentally conscious consumers as its target market.

Takeover Bid

A Takeover Bid is an offer made by one company to acquire control of another company by purchasing a significant portion or all of its shares. Takeover bids can be friendly (agreed upon by the target company) or hostile (opposed by the target company).

For example, Company A might make a takeover bid for Company B by offering to buy its shares at a premium price to gain control of the company.

Tangible Assets

Tangible Assets are physical assets that have value due to their substance and properties. These assets include property, plant, equipment, inventory, and cash.

For example, a manufacturing company might list its factory buildings, machinery, and raw materials as tangible assets on its balance sheet.

Tax Deduction

A Tax Deduction is an expense that can be subtracted from a taxpayer’s gross income to reduce the amount of income that is subject to tax. Common tax deductions include mortgage interest, charitable contributions, and business expenses.

For example, a business might claim tax deductions for office supplies, travel expenses, and employee salaries to lower its taxable income.

Tax-Deferred

Tax-Deferred refers to investment earnings such as interest, dividends, or capital gains that accumulate tax-free until the investor takes a distribution or withdraws the funds. It allows investments to grow without being reduced by taxes each year.

For example, contributions to a traditional IRA are tax-deferred, meaning taxes are paid upon withdrawal, usually during retirement.

Technical Analysis

Technical Analysis is a method of evaluating securities by analyzing statistical trends from trading activity, such as price movements and trading volume. It uses charts and other tools to identify patterns and make investment decisions.

For example, a trader might use technical analysis to study the historical price movements of a stock to predict its future performance.

Term Sheet

A Term Sheet is a non-binding document that outlines the basic terms and conditions of an investment agreement. It serves as a template for drafting a formal, legally binding contract.

For example, a startup might sign a term sheet with a venture capital firm, detailing the valuation, investment amount, and investor rights before finalizing the deal.

Time Value of Money (TVM)

The Time Value of Money (TVM) is a financial concept that states that a dollar today is worth more than a dollar in the future due to its potential earning capacity. It emphasizes the importance of considering interest rates and inflation when evaluating investment opportunities.

For example, when comparing two investment options, one should consider the TVM to determine which option will yield a higher return over time.

Tombstone

A Tombstone is an advertisement placed in financial publications to announce a new issue of securities, such as an IPO or bond offering. It typically includes the name of the issuer, the type of security, the underwriters, and other key details.

For example, a company might place a tombstone ad in a financial newspaper to announce its upcoming IPO and attract potential investors.

Top-Line Growth

Top-Line Growth refers to the increase in a company’s gross revenue or sales over a specific period. It is an important indicator of a company’s ability to expand its market presence and attract more customers.

For example, a company reporting a 15% increase in quarterly sales demonstrates strong top-line growth, indicating successful market strategies.

Total Addressable Market (TAM)

Total Addressable Market (TAM) is the overall revenue opportunity available if a product or service achieves 100% market share. It helps businesses assess the potential size and scope of their target market.

For example, a startup developing a new medical device might calculate its TAM by estimating the total demand for similar devices across the global healthcare industry.

Trade Credit

Trade Credit is a type of short-term financing extended by suppliers to their customers, allowing them to purchase goods or services and pay for them at a later date. It helps businesses manage cash flow and inventory levels.

For example, a retailer might receive trade credit from a supplier, allowing it to stock up on inventory and pay the supplier 30 days later.

Trade Secret

A Trade Secret is a form of intellectual property that comprises confidential business information, such as formulas, processes, designs, or practices, that provide a competitive advantage. Trade secrets are protected by law as long as they remain secret.

For example, the recipe for Coca-Cola is a famous trade secret that is closely guarded to maintain the company’s competitive edge.

Trailing Twelve Months (TTM)

Trailing Twelve Months (TTM) is a financial metric that measures a company’s performance over the most recent 12-month period. It provides a more current view of financial performance than annual or quarterly reports.

For example, an investor might analyze a company’s TTM revenue to assess its growth trends and make informed investment decisions.

Transaction Advisory Services (TAS)

Transaction Advisory Services (TAS) are professional services provided by accounting and consulting firms to assist clients in mergers, acquisitions, divestitures, and other complex financial transactions. These services include due diligence, valuation, and negotiation support.

For example, a company planning to acquire a competitor might hire a TAS firm to conduct due diligence and assess the target company’s financial health.

 Treasury Stock

Treasury Stock refers to shares that were once issued and outstanding but have been repurchased by the company. These shares are held in the company’s treasury and can be reissued or retired in the future.

For example, a company might buy back its shares to reduce the number of shares outstanding, potentially increasing the value of remaining shares.

Turnkey Project

A Turnkey Project is a type of project where a contractor handles all aspects of the project from start to finish, delivering a fully operational facility or system to the client. The client can “turn the key” to start using the project immediately upon completion.

For example, a construction company might complete a turnkey project by designing, building, and equipping a new factory, ready for immediate use by the client.

Turnover Ratio

The Turnover Ratio is a financial metric that measures how efficiently a company uses its assets to generate revenue. It can refer to various types of turnover, such as inventory turnover or receivables turnover.

For example, a high inventory turnover ratio indicates that a company sells and replaces its inventory quickly, suggesting efficient operations.

Two-Tier Bid

A Two-Tier Bid is a takeover strategy where an acquirer offers a higher price for a portion of the target company’s shares, followed by a lower price for the remaining shares. It incentivizes shareholders to sell quickly at the higher price.

For example, an acquiring company might offer $50 per share for the first 50% of shares and $40 per share for the remaining shares, encouraging early acceptance.