Recurring Revenue

Revenue expected to repeat through subscriptions, licences, retainers, memberships, renewals, or contracts.

Purchase Price

The total agreed consideration paid or payable by the buyer for the business, shares, or selected assets.

Purchase Agreement

The binding legal contract that defines what is being sold, the price, payment terms, warranties, liabilities, and closing conditions.

Proof of Funds

Evidence that a buyer has sufficient available capital or committed financing to complete the acquisition.

Private Equity

Investment capital used to acquire or invest in privately held companies, often with the aim of increasing value before a future exit.

Platform Risk

The risk created when a business depends on a third-party platform, marketplace, app store, search engine, payment provider, or social network.

Performance Metric

A measurable financial, customer, operational, or technical indicator used to evaluate business performance or calculate an earn-out.

Online Marketplace

A digital platform that connects two or more participant groups, such as buyers and sellers or customers and service providers.

Non-Compete Agreement

A contractual restriction intended to prevent the seller from competing with the acquired business for a defined period, activity, or territory.

Network Effect

A condition in which a product or platform becomes more useful as more users or participants join.