The portion of the purchase price paid to the seller when the transaction legally completes.
Due Diligence
The buyer’s structured review of the business’s financial, legal, commercial, operational, technical, and tax information.
Letter of Intent
A preliminary document outlining the main proposed acquisition terms before the final purchase agreement, commonly abbreviated as LOI.
Representations and Warranties
Statements made by the seller about the business, assets, ownership, financial records, contracts, compliance, and liabilities.
Transition Period
The agreed period after closing during which the seller supports the buyer with training, introductions, and operational knowledge transfer.
Cash Flow
The movement of money into and out of a business over a defined period.
Earn-Out
A future payment that depends on the acquired business achieving agreed performance targets after closing.
Liquidity
In a marketplace, the ability of participants to find suitable counterparties and complete transactions efficiently.
Revenue
The total income generated by a business before operating expenses and other deductions.
Valuation
The process of estimating the economic value of a business, company, ownership stake, or group of assets.
