A/B Testing
Method of simultaneously testing two variants (A and B) of a product, page or campaign to identify the better one. Data-driven decision instead of gut feeling.
See also:Go-to-Market (GTM)USP (Unique Selling Proposition)
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A
A, B, C Customers
Classification of the customer base by value or revenue contribution. A-customers: top 20% generating ~80% of revenue. B-customers: middle tier with growth potential. C-customers: many customers with low individual contribution. Foundation for resource allocation and pricing.
See also:PricingWorking Capital & Cash Conversion
Accelerator
A time-limited, intensive support program for start-ups – typically 3–6 months. Provides mentoring, networks, capital and structured training. Often ends with a Demo Day in front of investors. Well-known examples: Y Combinator, Techstars.
See also:IncubatorAngel InvestorSeed Funding
Angel Investor
A private individual who invests equity into early-stage start-ups – often from personal wealth, before institutional VCs get involved. Brings not just capital but also a network and operational experience. Typical investment size: €25,000 to €500,000.
See also:Venture Capital (VC)Seed FundingIncubator
Asset Turnover
Metric for how efficiently a company uses its assets to generate revenue. High value = capital-efficient business model. Especially relevant in retail and manufacturing.
See also:Working Capital & Cash ConversionEBITDA
AI-native Operations
An operating model in which artificial intelligence is not added retrospectively but built into operational processes from the ground up. Enables fundamental efficiency and quality leaps rather than incremental improvements.
See also:AI Workflow AutomationIntelligent Process AutomationOperating Model
AI Workflow Automation
Automation of workflows using AI-powered systems. Goes beyond rule-based automation: AI recognizes patterns, makes decisions and adapts to changing conditions.
See also:AI-native OperationsIntelligent Process AutomationProductivity Improvement
AI-assisted Decision Making
Use of AI analyses to support human decisions – not as a replacement, but as a data-driven advisor. Processes large data volumes, identifies patterns and delivers actionable recommendations.
See also:Predictive AnalyticsData IntelligenceAI Agents
AI Agents
Autonomous AI systems that independently plan and execute defined tasks – without step-by-step instructions. Can access tools, data and APIs to handle complex workflows.
See also:AI-native OperationsAI Workflow AutomationAI-assisted Decision Making
AI-driven Reporting
Use of AI to automatically create, analyze and interpret business reports. Reduces manual effort, increases timeliness and proactively delivers actionable insights.
See also:Data-driven SteeringKPI ManagementPredictive Analytics
B
Business Plan
Structured document describing a company's business model, market analysis, strategy, team and financial planning. Foundation for investor conversations and internal decisions – not an academic form, but a thinking tool.
See also:Pitch DeckFinancial ModelingGo-to-Market (GTM)
Buy & Build
Private equity strategy: acquire a platform company, then systematically add bolt-on acquisitions. Goal: economies of scale, multiples arbitrage and market consolidation. Often used in fragmented industries.
See also:Private Equity (PE)M&A (Mergers & Acquisitions)Leverage
Budget Steering
Active management and monitoring of budgets and resources. Goal: ensure spending aligns with strategic priorities and variances are detected early.
See also:ForecastingVariance AnalysisKPI Management
Business Steering
Holistic integration of operational and financial corporate management. Goal: consistent decision-making foundations for management and shareholders through integrated KPI systems.
See also:KPI ManagementPerformance ManagementOperational Steering
C
Cash Conversion Cycle (CCC)
Measures the time between raw material purchase and customer payment receipt. CCC = DIO + DSO – DPO. The shorter, the less capital is tied up in operations – critical metric for liquidity management.
See also:Working Capital & Cash ConversionFree Cashflow
Cost Controlling
Monitoring and active management of company costs. Covers cost recording, analysis, budget comparison and action derivation – a core discipline of operational business steering.
See also:Cost OptimizationVariance AnalysisEBITDA
Cashflow Optimization
Systematic improvement of liquidity and payment flows. Includes working capital management, payment term optimization and cash forecasting – critical for financial stability.
See also:Free CashflowWorking Capital & Cash ConversionCash Conversion Cycle (CCC)
Cost Optimization
Systematic reduction of costs while maintaining organizational performance. Unlike mere cost-cutting: a sustainable focus on efficiency rather than short-term savings.
See also:Cost ControllingEBITDA ImprovementLean Management
Continuous Improvement
Structured approach to continuously and incrementally optimizing processes and performance. Based on principles such as Kaizen and PDCA cycles – culturally embedded rather than a one-off project.
See also:KaizenLean ManagementOperational Efficiency
D
DCF (Discounted Cash Flow)
A valuation method that discounts future cash flows to their present value. Used to determine the fair value of a company or project – the foundation of almost every professional business valuation.
See also:Free CashflowMultiplesEBITDA
Decision Tree
A machine learning model that makes decisions using a tree structure. Each branch represents a condition, each leaf a result. Intuitive and interpretable – often the starting point for more complex AI models.
See also:Reinforcement Learning
Debt
Capital provided by creditors against interest payments and repayment obligations. Must be serviced regardless of business success – increases risk, but also potential return on equity through leverage.
See also:EquityLeverageFree Cashflow
Due Diligence
Systematic examination of a company before a transaction (M&A, investment). Covers Financial, Legal, Commercial and Operational DD. Goal: identify risks, validate valuation, create negotiating basis.
See also:M&A (Mergers & Acquisitions)Private Equity (PE)Financial Modeling
Data Intelligence
Use of structured and unstructured data to steer the business. Covers data collection, processing and analysis – a prerequisite for AI applications and data-driven decisions.
See also:Data-driven SteeringPredictive AnalyticsKPI Management
Data-driven Steering
Business management consistently based on data rather than intuition. Combines operational KPIs, forecasts and real-time analyses to enable faster and better-informed decisions.
See also:Data IntelligenceKPI-driven ManagementBusiness Steering
E
EBIT
Earnings Before Interest and Taxes – operating profit before interest and taxes. Shows core business profitability independent of capital structure and tax burden. A key metric for performance comparisons.
See also:EBITDAMultiples
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization. Often used as a proxy for operating cash flow. Widely used in company valuations and M&A transactions.
See also:EBITFree CashflowMultiples
Equity
Capital provided by owners or generated through retained earnings. Bears the full company risk but has no repayment obligation. The foundation of all financing structures.
See also:DebtVenture Capital (VC)Private Equity (PE)
Exit
Sale of an investor's stake to realize profits. Common routes: Trade Sale (to a strategic buyer), Secondary Buyout (to another PE), IPO (stock market listing). Determines the actual return on investment.
See also:Venture Capital (VC)Private Equity (PE)M&A (Mergers & Acquisitions)IPO
EBITDA Improvement
Targeted improvement of operational profitability through revenue growth, cost reduction or process optimization. A core element of PE value creation plans and turnaround programs.
See also:EBITDAValue Creation PlanEBITDA Bridge
EBITDA Bridge
Visual representation explaining changes in EBITDA between two periods through individual drivers (e.g. volume, price, costs, mix). A standard format in management reporting and investor communications.
See also:EBITDAVariance AnalysisEBITDA Improvement
F
Financial Modeling
Building mathematical models to simulate financial scenarios. The basis for forecasting, business cases and strategic decisions – typically done in Excel or specialized tools.
See also:DCFEBITDA
Free Cashflow
Cash flow after deducting capital expenditure (Capex). Shows how much cash a company actually has available – for debt repayment, dividends or growth. A key metric for investors and acquirers.
See also:Working Capital & Cash ConversionEBITDADCF
Forecasting
Projection of future business developments based on historical data, market trends and statistical models. The foundation for budget and resource planning as well as strategic decisions.
See also:Financial ModelingScenario PlanningKPI Management
Financial Planning
Strategic financial planning of a company: creation of budgets, forecasts and multi-year plans. The link between operational management and long-term corporate strategy.
See also:ForecastingFinancial ModelingBudget Steering
G
Go-to-Market (GTM)
A strategic plan for launching a product or service to market. Covers target audience, sales channels, pricing and messaging. Often determines the success or failure of a launch.
See also:USP (Unique Selling Proposition)PricingPitch Deck
H
Hedge Fund
Private investment fund with a broad strategy spectrum: Long/Short, Arbitrage, Macro, Event-Driven. Uses leverage and derivatives. Typically only accessible to institutional or very wealthy investors. Return target: absolute return, independent of the market.
See also:Private Equity (PE)Venture Capital (VC)
I
Incubator
An organization or program that provides early-stage start-ups with infrastructure, mentoring, networks and often capital – in exchange for equity or a fee. Goal: to secure survival in the fragile early phase. Unlike an accelerator: longer duration, less structured program.
See also:AcceleratorAngel InvestorSeed Funding
Investor Education
A phase before a capital market transaction (e.g. IPO) in which management selectively informs institutional investors – before official marketing begins. Goal: build understanding of the business model, test the price range, gauge demand.
See also:IPO (Initial Public Offering)RoadshowPitch Deck
IPO (Initial Public Offering)
First listing of a company on a stock exchange. Enables capital raising and exit for early investors. Complex, regulation-intensive and high-profile – often the final step in a long growth journey.
See also:ExitVenture Capital (VC)Series A/B/CRoadshow
Intelligent Process Automation
Combination of classic process automation (RPA) with AI-driven decision logic. Enables the automation of complex, non-rule-based processes.
See also:AI Workflow AutomationAI-native OperationsProcess Standardization
K
Kaizen
Japanese concept of continuous improvement. Not a one-time project but a mindset: every process, a little better every day. Core principle of Lean Management.
See also:Lean Management
KPI Management
Steering organizations using defined Key Performance Indicators (KPIs). KPIs make performance measurable, create transparency and enable data-driven decisions at all levels.
See also:Performance ManagementBusiness SteeringKPI-driven Management
KPI-driven Management
Leadership approach in which decisions and priorities are consistently guided by Key Performance Indicators. Creates objectivity, consistency and accountability at all levels.
See also:KPI ManagementPerformance ManagementData-driven Steering
L
Lean Management
Management approach to eliminate waste (Muda) in processes. Originally from the Toyota Production System. Goal: maximum customer value with minimum resource use.
See also:Kaizen
Leverage
Use of debt capital to increase return on equity. In a success case, it amplifies returns disproportionately – but also increases risk. In M&A, leveraged structures are called Leveraged Buyouts (LBOs).
See also:EBITFree Cashflow
M
M&A (Mergers & Acquisitions)
Mergers and acquisitions as a strategic instrument. M&A covers the evaluation, structuring and execution of transactions – with the goal of gaining growth, synergies or market share.
See also:EBITDAMultiplesDCF (Discounted Cash Flow)
Multiples
Valuation metrics that relate enterprise value to a financial figure – e.g. EV/EBITDA or P/E ratio. Enable quick market comparisons and are the basis of many M&A price negotiations.
See also:DCFEBITDAEBIT
MVP (Minimum Viable Product)
The smallest possible product version with core functionality, delivered to real users. Goal: fast feedback with minimal effort. Prevents months of building something nobody needs.
See also:Go-to-MarketPitch Deck
Margin Analysis
Analysis of profit margins at product, customer, segment or company level. Identifies profitability drivers and inhibitors – the basis for pricing decisions and cost optimization.
See also:EBITDAPricingCost Controlling
N
Neural Networks
AI model loosely modeled on the structure of the human brain. Layers of 'neurons' process data and recognize complex patterns. Foundation of deep learning, image recognition and large language models.
See also:Reinforcement LearningDecision Tree
O
Operational Efficiency
Efficient use of resources and processes to generate maximum value. Measured by output/input ratios – a central objective of lean management and process optimization programs.
See also:Lean ManagementCost OptimizationProductivity Improvement
Operational Steering
Linking operational metrics to day-to-day management decisions. Provides the foundation for timely responses to variances and consistent implementation of strategic goals.
See also:Business SteeringKPI ManagementPerformance Management
Operational Transparency
Creating clarity and visibility over operational metrics, processes and responsibilities. A prerequisite for effective management, investor confidence and successful transformations.
See also:KPI ManagementPerformance ManagementData-driven Steering
Operating Model
Describes the organizational and operational structure of a company: how processes, resources, technologies and decision-making structures work together to execute the strategy.
See also:Process StandardizationBusiness SteeringTransformation Office
Operational Due Diligence
Analysis of operational risks, potentials and structures of a company before an investment or acquisition. Complements Financial Due Diligence with an operational perspective – especially relevant for PE investors.
See also:Due DiligenceValue Creation PlanOperating Model
Operating Partner
Experienced manager or advisor who operationally supports portfolio companies of a PE fund in growth, transformation and performance – often with deep industry knowledge and networks.
See also:Private Equity (PE)Value Creation PlanPortfolio Performance
P
Pitch Deck
An investor presentation by a start-up – typically 10–15 slides. Covers problem, solution, market, business model, team and funding needs. The door opener for investor conversations.
See also:Seed FundingSeries A/B/CUSP (Unique Selling Proposition)
Pre-Deal Investor Education
Confidential phase before the official IPO marketing: management meets selected major investors informally to gauge interest and price expectations. No binding offer – but strategically critical for bookbuilding and price discovery.
See also:IPO (Initial Public Offering)RoadshowInvestor Education
Private Equity (PE)
Capital invested by funds in privately held companies. Typical cycle: acquisition, operational value creation over 3–7 years, exit. Common strategies: Buyout, Growth Equity, Turnaround.
See also:Venture Capital (VC)Buy & BuildLeverageExit
Pricing
Strategic price-setting for products or services. Goes far beyond cost coverage – considers willingness to pay, positioning, competition and psychological effects. One of the strongest margin levers.
See also:Commercial FinanceGo-to-Market
Process Standardization
Standardization of business processes to increase efficiency, quality and scalability. Reduces error rates and forms the foundation for automation and AI integration.
See also:Operational EfficiencyContinuous ImprovementOperating Model
Performance Management
Managing and monitoring organizational performance against defined targets. Covers goal-setting, measurement, analysis and continuous improvement – at individual, team and company level.
See also:KPI ManagementBusiness SteeringOperational Steering
Productivity Improvement
Increasing output quality and quantity with the same or fewer resources. Achieved through process optimization, training, automation or better management systems.
See also:Operational EfficiencyContinuous ImprovementAI Workflow Automation
Portfolio Performance
Assessment of the performance of portfolio companies within an investment fund. Covers operational KPIs, EBITDA development and progress against the value creation plan – central to PE firms.
See also:Value Creation PlanEBITDA ImprovementKPI Management
Post-Merger Integration
Structured process for integrating companies after an acquisition or merger. Covers harmonization of processes, systems, cultures and reporting – critical for realizing synergies.
See also:M&A (Mergers & Acquisitions)Operating ModelTransformation Office
Predictive Analytics
Analysis of historical and current data to forecast future developments. Used for demand forecasting, early risk detection and process optimization – a core building block of data-driven management.
See also:ForecastingData IntelligenceAI-assisted Decision Making
R
Reinforcement Learning
An AI learning method where an agent learns optimal strategies through trial and feedback (reward/penalty) – without explicit programming of the solution. Known through applications like chess AI or autonomous driving.
See also:Decision Tree
Roadshow
A marketing tour by management ahead of an IPO or major capital market transaction. The team presents to institutional investors in multiple cities to build demand and fill the order book. Typical duration: 1–2 weeks.
See also:IPO (Initial Public Offering)Investor EducationPre-Deal Investor Education
Ratio
Financial metric expressing the relationship between two figures – e.g. Debt/Equity, Current Ratio or EBIT margin. Enables quick comparison of companies and industries. Foundation of every business diagnostic.
See also:EBITDAEBITCash Conversion Cycle (CCC)
S
Seed Funding
The first external funding round of a start-up. Used to develop the first product and validate the market. Typical sources: business angels, family & friends, early-stage VCs.
See also:Series A/B/CPitch DeckAngel Investor
Start-up
A young, growth-oriented company in its early stage, building and testing a scalable business model. Typical characteristics: high uncertainty, limited capital, focus on rapid market validation. Usually funded by angels, VCs or incubators.
See also:Venture Capital (VC)Angel InvestorIncubatorMVP (Minimum Viable Product)
Series A/B/C
Successive venture capital funding rounds after the seed phase. Series A: prove product-market fit. Series B: scale. Series C and above: internationalization or pre-IPO.
See also:Seed FundingPitch Deck
Scenario Planning
Modeling different business and market developments to prepare options for various future scenarios. Reduces surprise effects and improves strategic resilience.
See also:ForecastingFinancial ModelingFinancial Planning
T
Turnaround
Restructuring of a financially distressed company with the goal of restoring profitability and stability. Involves cost reduction, portfolio cleanup, liquidity management and strategic realignment – often under time pressure.
See also:Private Equity (PE)LeverageFree Cashflow
Transformation Office
Central steering unit for company-wide change and optimization programs. Coordinates workstreams, tracks progress, escalates risks and ensures implementation quality.
See also:Performance ManagementOperating ModelValue Creation Plan
U
USP (Unique Selling Proposition)
The unique differentiating feature of a product or company. Answers the question: why should a customer choose exactly this offer? The foundation of every positioning and marketing strategy.
See also:Go-to-Market (GTM)Pricing
V
Venture Capital (VC)
Risk capital invested by specialized funds in young, high-growth start-ups – in exchange for equity stakes. VCs actively accompany companies across multiple rounds (Seed to Series C+) through to exit.
See also:Private Equity (PE)Seed FundingSeries A/B/CExit
Venture Funding
Umbrella term for all forms of external capital raising by start-ups and growth companies – from angel rounds through Seed and Series A/B/C to Growth Equity. Typically finances market entry, scaling or internationalization.
See also:Venture Capital (VC)Angel InvestorSeed FundingSeries A/B/C
Variance Analysis
Examination of deviations between planned and actual metrics (e.g. revenue, costs, EBITDA). Enables precise understanding of the drivers and forms the basis for corrective actions.
See also:EBITDA BridgeKPI ManagementForecasting
Value Creation Plan
Structured plan defining specific measures to increase the value of a company – following a PE acquisition or during a restructuring. Includes operational, strategic and financial levers.
See also:EBITDA ImprovementPortfolio PerformancePrivate Equity (PE)
W
Working Capital & Cash Conversion
Working Capital = current assets minus current liabilities. Cash Conversion measures how quickly a company turns this into free liquidity. High cash conversion = healthy, capital-light business model.
See also:Free CashflowEBITDACash Conversion Cycle (CCC)