Contracts and Vendor Due Diligence

Personal Guarantee

A promise by an individual, often the owner, to personally pay if the business does not. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Related terms

Advisor

A professional who helps with the sale, such as a broker, M&A advisor, CPA, attorney, or investment banker. Why it matters: The right advisor can help prepare materials, explain tradeoffs, manage buyers, reduce surprises, and keep the owner from negotiating complex deal terms alone.

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

More from Contracts and Vendor Due Diligence

Auto-Renewal Customer Contract Exclusivity Agreement Lease Material Contract Most Favored Nation Clause Notice Period Service Level Agreement SLA Termination Clause Vendor Contract

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