WCR:
Working capital requirement.

BIMBO (Buy-In-Management Buy-Out.):
The acquisition of a business by a combination of in-house management and managers from outside the company, with or without leverage.

Cash flow:
Cash generated by the business.

Senior debt:
Within the context of LBO financing, senior debt corresponds to contributions in the form of amortizable debt offered by banks. Debt of this type generally falls due in 6 or 7 years. Annual interest and repayment of principal rank higher than Mezzanine debt.

Equity:
Within the context of LBO financing, equity corresponds to capital and quasi-capital (current account or bonds) provided by participating investors and managers.

IBO (Institutional Buy-Out):
Outside investors (private equity investors) buy the business, with or without management support.

LBO (Leveraged Buy-Out):
A general term that applies to all acquisitions of a controlling interest in a business with leverage financing (MBO, MBI, BIMBO, etc.).

LBU (Leveraged Build-Up):
An MBO or MBI that is followed by one or more subsequent acquisitions, partly leverage financed.

MBI (Management Buy-In):
When a new management team from outside acquires a company, with or without resorting to leverage.

MBO (Management Buy-Out):
When management of a company acquire as controlling interest from its existing shareholder(s), with or without leverage.

Mezzanine:
In an LBO, Mezzanine financing is that provided in exchange for equity-based options subscribed by banks or investment funds. These options are usually exercisable after 8 or 9 years.
This kind of debt is subordinate to senior debt.