Subscribe via RSS Feed Network with Will on LinkedIn

Archive for August, 2009

Long Term Supply Agreement

Agreement whereby your firm commits to a predictable volume of unit purchases over the long term, in return for advantageous pricing.

LOI

See Letter of Intent.

Licensing Agreement

Agreement whereby a company simply “rents” the technology, brand name, or other assets that are the target of its interests.

Leveraged Restructuring

Form of transaction whereby a company utilizes debt to redesign its capital structure (weighting of debt and equity).

Leveraged Buyout

Form of financial restructuring whereby a company takes on debt to acquire its outstanding common shares from investors.

Letter of Intent

Nonbinding document through which both the acquirer and the target publicly express their intent to complete the merger or acquisition transaction.

Leaseback

Transaction by which a company sells an asset to a third party to then lease it back or pay a fixed fee for use.

LBO

See Leveraged Buyout.

Joint Venture

Separate entity formed by the partnership of two companies. This entity is generally used to develop a new technology or process, which would help both companies.

Joint Purchasing Agreement

Agreement between two companies to combine purchases of raw materials or other resources to achieve economies of in purchasing.