The glossary every M&A expert should know. Over 200 terms and definitions to speak with confidence and to gain a better understanding of the inherent complexity of mergers and acquisitions.
Our goal is to make Matactic your go-to tool for learning or recalling specialized M&A vocabulary. Explore our entries—we’ll be continuously adding new words and concepts.
Governance enhancements refer to the improvements made to the processes, policies, and structures that guide and control how organizations operate.… Read More »Governance Enhancements definition + case study
Deferred consideration is a financial arrangement where a portion of the purchase price for an asset or business is postponed… Read More »Deferred Consideration definition + case study
Tag-along rights are contractual agreements that allow minority shareholders to sell their shares alongside majority shareholders when a sale occurs.… Read More »Tag-along rights definition + case study
The Foreign Investment Review Board (FIRB) approval is a requirement in Australia for foreign investors looking to invest in Australian… Read More »Foreign Investment Review Board approval definition + case study
When we use the term “minority interest discount,” we want to express the reduction in value that investors might apply… Read More »Minority Interest Discount definition + case study
A most favored nation (MFN) clause is a provision in a contract or agreement between parties that ensures one party… Read More »Most Favored Nation Clause definition + case study
A joint bidding agreement is a strategic collaboration between two or more parties to collaborate on a tender or bidding… Read More »Joint Bidding Agreement definition + case study
A post-closing adjustment refers to modifications made to the purchase price of an acquired company after the transaction has been… Read More »Post-Closing Adjustment definition + case study
Credit enhancement refers to a set of strategies or financial instruments used to improve the creditworthiness of a borrower or… Read More »Credit Enhancement definition + case study
A pitch book is a comprehensive document that investment bankers and financial advisors create to showcase their firm’s capabilities to… Read More »Pitch Book definition + case study
The share exchange ratio is the fixed number used to determine how many shares of the acquiring company’s stock will… Read More »Share Exchange Ratio definition + case study
When we use the term “industry advisor,” we want to express the role of a professional who provides specialized guidance… Read More »Industry Advisor definition + case study
Confidentiality provisions refer to clauses in legal agreements that protect sensitive information from being disclosed to unauthorized parties. These provisions… Read More »Confidentiality Provisions definition + case study
A credit bid is a tactic we often use in the realm of mergers and acquisitions where a creditor takes… Read More »Credit Bid definition + case study
Market sounding is the process by which companies gauge market interest and appetite for potential mergers, acquisitions, or other strategic… Read More »Market Sounding definition + case study
Proxy solicitation refers to the process of gathering votes from shareholders to elect directors or approve significant corporate actions, such… Read More »Proxy Solicitation definition + case study
An indicative offer is a preliminary proposal made by a buyer to a seller during negotiations in mergers and acquisitions.… Read More »Indicative Offer definition + case study
The closing date in a merger and acquisition context refers to the final date on which the transaction is officially… Read More »Closing Date definition + case study
Mergers and acquisitions (M&A) refer to the strategic process where two companies combine (mergers) or one company purchases another (acquisitions).… Read More »Mergers and Acquisitions definition
A non-solicitation clause is a contractual provision that prevents one party from soliciting or enticing the clients, customers, or employees… Read More »Non-solicitation clause definition + case study
A working capital adjustment refers to the changes made to the working capital of a company during the negotiation of… Read More »Working Capital Adjustment definition + case study
An officer’s certificate is a formal document issued by a company’s top executives—usually the president, CEO, or secretary—that certifies key… Read More »Officer’s Certificate definition + case study
A closing memorandum is a formal document used to summarize the key terms and conditions of a completed merger or… Read More »Closing Memorandum definition + case study
Pre-packaged bankruptcy is a form of bankruptcy in which a company negotiates a reorganization plan with its creditors before filing… Read More »Pre-packaged bankruptcy definition + case study
When we use the term “sell-side diligence,” we want to express the comprehensive examination and analysis conducted by advisers representing… Read More »Sell-side diligence definition + case study
A joint venture is a business arrangement where two or more parties agree to collaborate on a specific project or… Read More »Joint Venture definition + case study
Commercial diligence refers to the process of thoroughly examining the commercial viability of a business during mergers and acquisitions. This… Read More »Commercial Diligence definition + example
Reinvestment rights refer to the contractual provision that allows investors to reinvest their profits back into a company or project.… Read More »Reinvestment Right definition + case study
Liquidation preference is a financial term used to describe the order in which investors get paid back their investment during… Read More »Liquidation Preference meaning + case study
A lock-out agreement is a contractual arrangement that prevents a seller from negotiating with or selling their business to other… Read More »Definition of Lock-out Agreement & Example case