Inventory

Indemnification

A provision in the purchase agreement that allows a buyer to seek recourse against the seller for losses suffered due to breaches of representations and warranties (reps & warranties). See...

Initial Public Offering (IPO)

The first public sale of the stock of a formerly privately held company. Tips Companies are said to “go public” when they cease to be completely privately owned by offering...

Installment Sale

When the purchaser of a business pays the seller over several years, allowing the tax liability on any gain to be spread over the same period of time instead of...

Intellectual Property (IP)

A business’ legally protectable intangible assets, including patents, copyrights, trade names, domain names, trade secrets, and trademarks or service marks. See Also Trademark. Tips Intellectual property (IP) can include both...

Internal Rate of Return (IRR)

The interest rate, which is applied to a stream of cash flows, that causes the sum of the outflows and inflows to equal zero. See Also Hurdle rate, private equity...