• Indemnity – What seller has to provide to stand behind statements represented and warranted in a sale contract
• MAC Provision – part of purchase contract that deals with material adverse events before closing
• “CHOW” – In healthcare industry, there is typically a licensure or change of ownership application process.
• Pro Forma – Financial Model of Projected Revenues and Expenses, incorporating buyer’s operating assumptions and plans often testing multiple scenarios.
• TLM – Trailing Twelve Months of Financial and Statistical Data
• Re-Trade –Buyer’s Renegotiating Purchase Price Reduction After Agreeing to Purchase at a Higher Price Buyer Signs Deal That They Don’t Intend to Honor. Bait and Switch
• Earn-Out - An arrangement in which sellers receives additional future payment, usually based on future earnings.
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