Resources: Glossary

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

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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

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Repeat Customer

Definition

Customers who are not contractually committed to a business, but who still frequent it.

Example

Examples of repeat customers include customers for restaurants or other retail establishments.

Tips

Businesses with recurring revenue are in high demand. Examples of recurring revenue include revenue generated from a gym membership, a cell phone contract, insurance contract, and other monthly memberships.

Related Resources

What is the difference between repeat and recurring customers?

Repeat Customer

Definition

See Also

Example

Tips

Related Resources