Glossary of Financial Terms

MBO – Management Buy Out

When the managers and/or executive of a company purchase controlling interest in a company.

MBI – Management Buy In

When a group of investors outside of a company purchase a controlling block of shares and change the existing management.

Venture Capital, Equity

Medium to long-term finance provided in return for a stake in potentially high growth companies. Normally in the form of ordinary shares (either voting or non voting), preferential shares or any other type as agreed.

The North East of England

Defined as – Co Durham, Northumberland, Tees Valley and Tyne & Wear.

SME – Small or Medium Sized Enterprise

Independently owned enterprises with fewer than 250 employees, with an annual turnover not exceeding £35 million and an annual balance sheet total of less than £30 million. These figures are based on the current exchange rate of 1€ = £1.44.

SMEs are defined as enterprises which:

• Have fewer than 250 employees
• Have either an annual turnover not exceeding 50 Million Euro, or an annual balance sheet not exceeding 43 Million Euro
• Conform to the criterion of independence (as defined in para 3 of OJL 107 of 30.04.1996, page 8). Independent enterprises are those, which are not owned as to 25% or more of the capital or the voting rights by one enterprise, or jointly by several enterprises, falling outside the definition of an SME or a small enterprise, whichever may apply.  The threshold may be exceeded in the following
  two cases:
• if the enterprise is held by public investment corporations, venture capital companies or institutional investors, provided no control is
  exercised either individually or jointly
• if the capital is spread in such a way that it is not possible to determine by whom it is held and if the enterprise declares that it can legitimately presume that it is not owned as to 25% or more by one enterprise, or jointly by several enterprises, falling outside the definition of an SME or a small enterprise, whichever may apply.