Memorandum of Understanding

This is a non-binding agreement between two or more parties outlining the terms and details of an understanding, including each parties’ requirements and responsibilities.

MBO, MBI, LBO

These are types of buyouts: Management Buyout (MBO) is when a company’s management team purchases the assets and operations of the business; Management Buy-In (MBI) is when an outside management team buys in; Leveraged Buyout (LBO) is when a company is purchased with a significant amount of borrowed money.

Long Stop Date

This is a deadline by which all conditions of a transaction must be fulfilled, otherwise the transaction may be terminated.

Information Request List

This is a list of information that a buyer requests from a seller during the due diligence process of an M&A transaction.

Information Memorandum

This is a document provided by the seller of a business to potential buyers, containing detailed information about the business and the terms of sale.

Deadlock

This is a situation in which decision-making has come to a standstill due to the inability of the parties to agree.