Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Rate of Return
« Back to Glossary IndexCategory: Accounting and Finance
In the realm of mergers and acquisitions, the rate of return (RoR) signifies the profitability or yield gained from an investment. This financial metric assesses the performance of an acquisition by measuring the percentage increase or decrease in value over a specified period. Calculated by considering the initial investment and subsequent cash flows or gains, RoR is a pivotal indicator for investors and acquirers, guiding strategic decisions. A positive RoR indicates a profitable venture, while a negative RoR signals a potential loss. This metric is fundamental in evaluating the success and viability of mergers and acquisitions in achieving financial objectives.
« Back to Glossary IndexAcronym:
RoR
French Translation: