Big Picture Deal Terms

Private Equity Firm

An investment company that buys businesses using investor money, often with debt, and tries to grow or improve them. Why it matters: Private equity buyers often use debt, expect reporting discipline, and may want the seller or management team to stay involved after closing.

Related terms

Management Team

The leaders who run the business day to day. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Closing

The moment when the sale officially happens and ownership transfers. Why it matters: This term affects what must happen at closing, how money moves, and how final obligations are documented.

Seller

The current business owner who wants to sell the business. Why it matters: The seller is not just handing over ownership; they are also proving the business, answering diligence requests, negotiating risk allocation, and often helping with transition.

More from Big Picture Deal Terms

Acquisition Advisor Business Broker Buyer Exit Family Office Financial Buyer Independent Sponsor Investment Banker M&A M&A Advisor Search Fund

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