Selling Your Startup

Glossary

Industry lingo and terms are always changing. It's important to stay up-to-date on M&A terminology, even for the entrepreneur who has completed successful fundraising rounds and scaled a company.

Use this quick glossary to refresh and update your knowledge of the common terms you'll encounter during the M&A phase of the journey. It will prepare you to efficiently navigate meetings and offers; deepen conversations with buyers, bankers, and lawyers; and can go a long way toward securing a better outcome.

acquirer:

An organization or company buying or making an offer to buy a business.

acquisition:

The act of purchasing a controlling interest in another company or its assets.

angel investor:

An individual investor who invests his or her own capital into early-stage startups.

asset sale:

A type of acquisition in which the acquirer buys all or most of the target company's assets.

assets retained:

Any assets that the owner is able to keep after the closing of the transaction.

balance sheet:

A financial statement listing the liabilities, assets, and capital of a business.

book value:

The value of a company, calculated by subtracting intangible assets and any liabilities from the company's total assets.

breakup:

When the buyer and seller do not complete the deal and one party withdraws from the transaction.

bridge financing:

Shorter-term financing used to bridge cash flow gaps or carry a venture until preferable long-term financing can be secured.

burn rate:

How much money ...