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Glossary of Terms

Set out below is a Glossary of standard transactional terminology for private equity and corporate finance transactions. Use the filter menu if you are looking for a specific term, or to navigate the Glossary alphabetically.

Trade saleThe sale of a business to another company involved in the same area. The company could be a competitor, supplier or another business with complementary technology.

Asset saleThe sale of the company's assets rather than a purchase of shares.

Company saleA sale of the company's shares therefore the ownership of the entire company changes.

DivestmentA sale or disposal of company or business segment.

VendorThe individual or company that is selling shares in a company, or the trade and assets of a company.

Warranties and indemnitiesLegal confirmation by the seller that certain matters including those regarding tax and contingent liabilities, to assure the buyer that any undisclosed liabilities which come to light after the sale will be settled by the seller.