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.

Return on Investment (ROI)

Definition

The return on an investment calculated as a percentage of the original investment.

See Also

Cash-on-cash return, internal rate of return.

Example

If the investment is $1 million and the return is $200,000, then the ROI is 20%.
Tips: ROI differs from cash-on-cash return and internal rate of return (IRR).

Related Resources

Business Valuation & Return on Investment (ROI)