What is due diligence?
Due diligence is the formal investigation a buyer conducts into a business before completing a transaction, verifying that what was represented during […]
What are Drag-Along and Tag-Along rights?
Drag-along rights allow a majority shareholder to compel minority shareholders to join a sale on the same terms; tag-along rights allow minority […]
What is a Deadlock Clause?
A deadlock clause is a provision in a shareholders agreement that provides a defined mechanism for resolving disputes between equal co-owners when […]
What is Deal Structure?
Deal structure is the combination of price, payment terms, form of consideration, and post-closing obligations that together define what the seller actually […]
What is a Data Room?
A data room is the secure, organized repository of documents and information made available to buyers and their advisors during the due […]
What is De-Risking?
De-risking is the deliberate reduction of the factors that make a business vulnerable, to ownership transition, revenue disruption, key person departure, or […]
What is a Demand Loan?
A demand loan is a loan that the lender can require to be repaid in full at any time, with little or […]
What is the Debt-to-Equity Ratio?
The debt-to-equity ratio compares what a business owes to what it owns net of liabilities, measuring how much of the business is […]
What is the Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio measures whether a business generates enough operating income to cover its debt payments, and it is the […]
What are Debt Covenants?
Debt covenants are the contractual conditions attached to a loan that the borrower must maintain throughout the lending relationship, and breaching them […]
What is a Dividend Refund?
A dividend refund returns a portion of the tax a private corporation paid on investment income when it pays taxable dividends to […]
What is Depreciable Property?
Depreciable property is a business asset whose cost is written off over time through Capital Cost Allowance, because its useful life extends […]