Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Haircut

Definition

An informal term referring to a reduction in purchase price taken by the seller to facilitate a transaction.

Example

“The seller had to take a haircut on the purchase price because the revenue of the company slipped.”

Related Resources

A Guide to M&A Negotiating Tactics

M&A Negotiating Tactic #1 – Honesty