Mid period refers to the halfway point in a cash flow forecast period, which is used as a proxy for when the cash flows will be received on average.  When valuing cash flows using the discounted cash flow method, we often use the mid period to reflect that cash flows occur throughout the period, and not just at the end.

Due diligence helps in deciding whether to proceed with the acquisition or not. It involves an assessment or investigation of all aspects of a target’s business, including financial information, tax issues, technology, intellectual property, legal documents, customers, management, employees, litigation, environmental and regulatory issues.

Capital refers to the money raised by a company either through debt, equity or a mix of both, in order to fund its business operations and finance future growth. The aim of capital is to generate earnings and maintain growth. The capital that is required to run the day-to-day operations of a business is known as working capital. It comprises of cash or any liquid assets, such as accounts receivable.