M&A Acronyms

APA = Asset Purchase Agreement
CA = Confidentiality Agreement
CIM = Confidential Information Memorandum
COGS = Cost of Goods Sold
DBA = Doing Business As
DCF = Discounted Cash Flow
DPA = Definitive Purchase Agreement
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization
ESOP = Employee Stock Ownership Plan
FMV = Fair Market Value
GAAP = Generally Accepted Accounting Principles
IP = Intellectual Property
IRR = Internal Rate of Return
LOI = Letter of Intent
MAC = Material Adverse Change
MBI = Management Buy-In
MBO = Management Buyout
NDA = Non-Disclosure Agreement
PE = Private Equity
PEG = Private Equity Group
ROI = Return On Investment
SDE = Seller’s Discretionary Earnings
SPA = Stock Purchase Agreement

Limited Partner (LP)

A partner in a company who is not liable for losses beyond their original investment and who is protected from legal actions. This term often refers to a limited partner or the investors of a private equity fund, such as pension funds and insurance companies.

Tips

The general partner of a company is liable for the actions of the partnership, unlike the limited partner, who is not liable for losses beyond their original investment.

Related M&A Terms

Lehman Formula

A formula used by investment bankers and M&A advisors to calculate the amount of compensation due upon a successful transaction. Tips The formula starts with a higher percentage on the...

Letter of Intent (LOI)

A preliminary agreement that outlines the essential terms of an acquisition and signifies the parties’ commitment to start due diligence and begin working toward a purchase agreement. See Also Due...

Limited Liability Company (LLC)

A form of business that is normally taxed as a partnership and shields its owners from responsibility for business debts. See Also Entity. Tips By default, an LLC does not...

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M&A Glossary

Limited Partner (LP)

See Also

Tips

Related M&A Terms

Lehman Formula

Letter of Intent (LOI)

Limited Liability Company (LLC)

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