Pari Passu A commonly-used term which means every shareholder or class of share is treated the same way. So where an investor has a Liquidation Preference, this is an exception to the Pari Passu. ... read more
Patent Box A tax relief which allows innovative companies to apply a lower rate of corporation tax (currently 10%) to the profits they derive from their inventions and innovations. ... read more
Pay to Play A mechanism which incentivises existing investors to participate in a fundraising. Under a Pay to Play mechanism, an investor who doesn’t participate will not only be Diluted but will also lose some or all of its enhanced right... read more
PBIT Profit Before Interest and Tax. ... read more
Performance test A mechanism which allows a hotel owner to terminate a Management Agreement due to poor performance by the operator, often by comparison to similar hotels in the same market. ... read more
POM Property, Operational and Maintenance. See Undistributed Operating Expenses. ... read more
Portfolio Company One of the companies in which a VC fund or other serial investor has invested. ... read more
Post-Money Valuation The Valuation of a company that includes the capital provided by the current round of Equity ... read more
Pre-Emption Rights (issue of new shares) A shareholder’s right to participate Pro Rata in a new issue of shares so allowing it to maintain its percentage shareholding in the company. This right can be dis-applied by passing a Special Resolution. Sometimes referred to as Ri... read more
Pre-Emption Rights (transfer of shares) A shareholder’s Pro Rata right to purchase shares offered for sale by another shareholder. This right is normally set out in the company’s Articles.  Sometimes referred to as Rights of First Refusal. ... read more
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