The portion of a seller's proceeds reinvested into the buyer's new entity instead of taken in cash, keeping the seller invested alongside the acquirer.
A fee the buyer must pay the target if the buyer walks away from a signed deal — the mirror image of a target's breakup fee.
A transaction in which a company's existing management team acquires the business it runs, usually backed by outside debt and equity financing.
A loan the seller extends to the buyer for part of the purchase price, deferred and repaid over time instead of paid in cash at close.
A window after a deal is signed during which the target may actively solicit competing bids, to test whether a higher offer exists.
A smaller company acquired to expand an existing platform investment, bought at a lower multiple to grow the platform and blend down its cost.