Gross margin meaning

This glossary sets out many of the expressions commonly used in the leveraged finance market. Words appearing in the definitions in bold are defined elsewhere in this glossary. For further banking terminology, please refer to the main Banking & Finance Glossary... Acquisition finance glossary—A Acceleration Acceleration is the formal action taken by the agent, on the instructions of the majority lenders, following an event of default, such as making a demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information... Accordion feature/accordion facility An accordion, also called an incremental debt feature, is a mechanism in the facilities agreement that, provided specified conditions are satisfied (for example, pro forma compliance with a leverage test), permits those lenders under the facilities agreement who wish to do so to advance additional debt. The terms for that extra debt are typically captured in an increase notice. This accordion or incremental debt flexibility is different from structural adjustment, which usually requires the majority consent...

What does this Practice Note cover? This Practice Note explains the documentation needed to set up and run a derivatives clearing arrangement operating under the principal model (see: ‘Two main models of clearing’ below), as typically and widely applied in the EU and UK. It sets out the legal and operational architecture for recording both the Client Transaction (defined below) and the linked CCP Transaction (defined below), covering the deployment of standard industry templates, collateral mechanisms, and various account segregation approaches. How is clearing achieved? Clearing is the mechanism by which a central counterparty (CCP) serves as an intermediary for financial market trades, seeking to assure and reduce the risk on the transaction between ‘buyer’ and ‘seller’. In practice, clearing occurs via a structured workflow encompassing trade submission, validation, and novation by a CCP. After execution, a trade is routed to the CCP through a clearing member (CM), and the CCP, performing its intermediation role, becomes the buyer to each seller and the seller to each buyer,...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Date of review [Insert date] • Reviewer(s): [Insert name(s)] Business planning A current, market-aware plan with medium aims and short targets; covers succession, positioning and financial health; actionable, reviewed regularly; three‑year funded investment, suitable premises, flexible finances, and fit‑for‑purpose IT. Finances Prudent borrowing, three months’ cash, ongoing reinvestment and funded commitments without single‑funder dependence; balanced KPIs, WIP control and gross‑margin focus (~50% after partner ‘salary’); cash targets met; pricing, fees and spend reviewed; planned IT, marketing and training budgets. People Balanced senior/junior mix, shared business development and external challenge; competitive rewards aid recruitment and retention; broad skills training; future managers developed via exposure to planning, finance and decisions. Clients Profitable long‑term clients plus enough new wins; active cross‑selling; acceptable losses; diversified portfolio; regular, objective feedback; targets can pay, sectors show growth, and our niche positioning sustains advantage. Marketing Client needs asked...