The M&A glossary
key terms and definitions

The company that initiates and completes the purchase of another company.

The purchase of one company by another, or the purchase of the controlling interest in another company.

A defined plan that outlines how an organization will identify, evaluate, and execute acquisitions in pursuit of its growth objectives.

The process of identifying, evaluating, and acquiring a target company, typically led by the acquiring firm or its advisors.

A purpose-built system for tracking M&A target relationships, deal stages, and interactions — distinct from sales CRM tools.

The comprehensive appraisal of a business undertaken by a prospective buyer.

The process of combining two companies after a merger or acquisition. Also see: PMI (Post-Merger Integration).

A non-binding document that outlines the key terms under which a buyer intends to acquire a target, typically preceding the purchase agreement.

All activities required after a deal closes to combine two organizations, realize synergies, and stabilize the merged entity.

The process of preparing a company or asset for sale, running a structured sale process, and negotiating with prospective buyers.

The potential financial benefit achieved through the combining of companies — typically categorized as revenue synergies, cost synergies, or financial synergies.

A summary document outlining the key terms and structure of a proposed transaction, typically non-binding in nature.

The process of estimating a company's worth using methodologies such as DCF analysis, comparable company analysis, or precedent transactions.

A secure digital space used to store and share confidential documents during M&A deals.