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.

Software purpose-built to manage the mergers and acquisitions process—encompassing deal sourcing, pipeline management, due diligence, PMI, and value tracking within a single platform.

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

A centralized project management tool for tracking the four critical dimensions of deal risk: Risks, Assumptions, Issues, and Dependencies.

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.

The process of monitoring whether expected value from an acquisition is being realized post-close, against predefined targets and timelines.

The early-stage process of surfacing potential acquisition candidates that align with a defined strategic and financial thesis.

The structured evaluation of identified targets against defined investment criteria to determine which warrant further diligence and engagement.

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 roadmap that defines how and when the strategic and financial rationale of an acquisition will be realized post-close.

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