Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Capital Expenditures

Definition

An investment a company makes in the fixed or capital assets of the company that have a useful life longer than one year or that are not intended for resale.

See Also

Depreciation.

Tips

Examples of fixed and capital expenditures include software, office equipment, buildings, land, factory, and equipment. Capital expenditures are sometimes subtracted from EBITDA by buyers when calculating the available cash flow of a business. Inventory is not a capital asset. Capital assets are usually depreciated as opposed to being expensed.

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