Expenses are the cost or costs required for something or the money spent on something. In a mergers and acquisitions transaction, a company may be asked to itemize “Transaction Expenses” that are paid at closing from the cash received by […]

Effective Date

The Effective Date means the date on which a document and its contents will go into legal effect. The Effective Date may be different in certain circumstances than the date the document is signed.

Finder’s Fee

A Finder’s Fee is a commission paid to a third-party for facilitating successful transactions, whether acquisitions or M&A, between a startup, investors, or potential partners.


A Finder is an individual who facilitates transactions, whether acquisitions or M&A, between companies and other parties.

Expenses Section (M&A)

An Expenses Provision is a section in a letter of intent or memorandum of understanding that sets out the liability of each party with respect to the expenses associated with due diligence and negotiating the transaction documents in the event […]

Exit Event

An Exit Event is an event where founders and early investors can sell their interest in a company for cash. An exit can be an initial public offering (IPO) or an acquisition by another company.

Exercising Stock Options

Exercising Stock Options means the option holder purchases the underlying stock, at the exercise price, in accordance with the option agreement.

Exercise Price

The Exercise Price is the price per share at which an option is exercised, i.e. the price at which the option holder can buy or sell the underlying security.

Exclusivity Provision

An Exclusivity Provision is a binding provision in a letter of intent or memorandum of understanding that one party (typically the seller) will not negotiate with or entertain offers to sell the assets or stock of the seller company from […]


Escrow describes documents, funds, and/or other assets being held by a third party until the parties of the transaction have satisfied certain obligations.