Glossary

Key terms and definitions for selling your business.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization. A common measure of a company’s operating profitability.

Due Diligence

The comprehensive appraisal of a business undertaken by a prospective buyer to establish its assets and liabilities and evaluate its commercial potential.

LOI (Letter of Intent)

A document declaring the preliminary commitment of one party to do business with another.

SPA (Share Purchase Agreement)

The main legal document in an M&A transaction that sets out the terms and conditions of the sale of shares.

Valuation

The process of determining the current worth of an asset or a company.