Independent or non-executive directors, although they are part-timers, still share all the legal responsibilities of their executive colleagues on the board of a company. In the distant past, non-execs used to include people who were not highly regarded externally - titled golfing friends of the chairman and suchlike. Today, non-execs include some of the best operators in the business world. Their status means they can take a strategic, long-term view of a business (whether a listed or unlisted company), whereas the executive team may be too close to the action. The modern view is that independent directors also have a vital role in protecting the interests of shareholders.

Where a financial institution acquires a business and installs its own management. Slightly different from a bought deal, where an institution negotiates the acquisition of a business with a view to handing it over to an MBO or MBI team. See also financial purchase.

A company's intangible assets, for instance patents, software, brand names etc. Intellectual property has become increasingly important compared with the old days when the assets of a prosperous business consisted entirely of bricks and mortar and metal - property, plant and machinery. Companies can protect their ownership rights over intellectual property, but cannot assert ownership of all that goes on in the heads of staff. This can lead to disputes when key employees leave to start their own enterprise.

Anyone in a position to bring together the principals in a deal or prospective deal. Everyone operating in the financial market tries to keep on good terms with intermediaries, such as accountants and merchant bankers, because it can lead to profitable business. See also beauty parades.

Long-term equity capital provided by institutions to facilitate growth in private companies. To some extent the term is interchangeable with venture capital. However, it emphasises that such capital is available for growth projects being carried out by a range of young or established businesses, whereas venture capital is mainly provided for MBOs or MBIs that change the ownership of the business.

Providers of capital for the long-term, as distinct from lenders of short-term capital. Investors have rights which lenders don't enjoy - and accept risks which lenders aren't exposed to.

Initial public offering. Once called a flotation this is the initial offering of the company's shares on a public market. A momentous occasion marking a significant stage of development and usually significant hair loss!

Internal Rate of Return. A measurement of the return on an investment based on discounted cash flow, expressed as an annual percentage rate.