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[[Definition:Artificial intelligence (AI)]]
**Transaction types and structures**
[[Definition:AcquisitionMachine learning (ML)]]
[[Definition:BancassuranceDeep acquisitionlearning]]
[[Definition:BusinessNatural combinationlanguage processing (NLP)]]
[[Definition:Carve-outComputer vision]]
[[Definition:ConsolidationPredictive analytics]]
[[Definition:CorporatePredictive reorganizationmodelling]]
[[Definition:Cross-borderAlgorithmic mergerunderwriting]]
[[Definition:DemergerAutomated claims processing]]
[[Definition:DivestitureFraud detection]]
[[Definition:EquityOptical purchasecharacter recognition (OCR)]]
[[Definition:HorizontalRobotic mergerprocess automation (RPA)]]
[[Definition:Hostile takeoverChatbot]]
[[Definition:InsuranceLarge businesslanguage transfermodel (IBTLLM)]]
[[Definition:InsuranceGenerative portfolioartificial transferintelligence (IPTGenAI)]]
[[Definition:JointNeural venture (JV)network]]
[[Definition:LeveragedSupervised buyout (LBO)learning]]
[[Definition:LossUnsupervised portfolio transfer (LPT)learning]]
[[Definition:ManagementTraining buyout (MBO)data]]
[[Definition:MergerAlgorithmic bias]]
[[Definition:Minority stake acquisitionExplainability]]
[[Definition:PartBlack VIIbox transfermodel]]
[[Definition:PlatformModel acquisitionvalidation]]
[[Definition:Reverse mergerTelematics]]
[[Definition:ReverseSentiment takeoveranalysis]]
[[Definition:SchemeDecision of arrangementtree]]
[[Definition:ShareData swapmining]]
[[Definition:SpecialStraight-through purpose acquisition companyprocessing (SPACSTP)]]
[[Definition:Spin-offIntelligent document processing (IDP)]]
[[Definition:StrategicDigital partnershiptwin]]
[[Definition:Takeover]]
[[Definition:Takeover bid]]
[[Definition:Tender offer]]
[[Definition:Transfer of engagements]]
[[Definition:Tuck-in acquisition]]
[[Definition:Vertical merger]]
**Deal participants and roles**
[[Definition:Bidder]]
[[Definition:Lead adviser]]
[[Definition:Private equity sponsor]]
[[Definition:Strategic buyer]]
[[Definition:Target company]]
[[Definition:Transaction advisory]]
**Valuation and pricing**
[[Definition:Base purchase price]]
[[Definition:Control premium]]
[[Definition:Deal structure]]
[[Definition:Embedded value (EV)]]
[[Definition:Enterprise value (EV)]]
[[Definition:Equity value]]
[[Definition:Purchase consideration]]
[[Definition:Purchase price allocation (PPA)]]
[[Definition:Valuation date]]
[[Definition:Value creation plan]]
[[Definition:Value of in-force business (VIF)]]
[[Definition:Request for proposal (RFP)]]
**Price adjustment mechanisms**
[[Definition:AdjustmentRequest mechanismfor information (RFI)]]
[[Definition:ClosingRequest adjustmentfor quotation (RFQ)]]
[[Definition:ClosingVendor paymentmanagement]]
[[Definition:CollarThird-party mechanismrisk management (TPRM)]]
[[Definition:CollarService (pricelevel collaragreement (SLA)]]
[[Definition:CompletionKey accountperformance indicator (KPI)]]
[[Definition:Completion account mechanism]]
[[Definition:Completion mechanism]]
[[Definition:Contingent consideration]]
[[Definition:Contractual price adjustment]]
[[Definition:Debt-free cash-free adjustment]]
[[Definition:Debt-like item]]
[[Definition:Deemed completion mechanism]]
[[Definition:Deferred consideration]]
[[Definition:Deferred payment mechanism]]
[[Definition:Dollar-for-dollar adjustment]]
[[Definition:Earn-out]]
[[Definition:Earn-out adjustment]]
[[Definition:Earn-out milestone]]
[[Definition:Earn-out period]]
[[Definition:Effective economic date]]
[[Definition:Enterprise value to equity value bridge (EV-to-equity bridge)]]
[[Definition:Equity ticker mechanism]]
[[Definition:Excess cash adjustment]]
[[Definition:Leakage]]
[[Definition:Leakage covenant]]
[[Definition:Locked-box account]]
[[Definition:Locked-box date]]
[[Definition:Locked-box interest (ticker)]]
[[Definition:Locked-box mechanism]]
[[Definition:Locked-box permitted leakage]]
[[Definition:Loss reserve true-up]]
[[Definition:Milestone payment]]
[[Definition:Net cash adjustment]]
[[Definition:Net debt adjustment]]
[[Definition:Net working capital target]]
[[Definition:Permitted leakage]]
[[Definition:Post-closing adjustment]]
[[Definition:Post-closing earn-out adjustment]]
[[Definition:Post-closing true-up]]
[[Definition:Pre-closing leakage]]
[[Definition:Pre-closing price adjustment]]
[[Definition:Price adjustment mechanism]]
[[Definition:Price chip]]
[[Definition:Price retention]]
[[Definition:Purchase price reduction]]
[[Definition:Reserve adjustment clause]]
[[Definition:Reserve true-up mechanism]]
[[Definition:Step-up adjustment]]
[[Definition:Ticker mechanism]]
[[Definition:True-up mechanism]]
[[Definition:Unearned premium reserve adjustment]]
[[Definition:Unearned premium reserve transfer]]
[[Definition:Value adjustment]]
[[Definition:Working capital adjustment]]
[[Definition:Working capital collar]]
[[Definition:Working capital peg]]
[[Definition:Working capital shortfall adjustment]]
[[Definition:Working capital surplus adjustment]]
[[Definition:Working capital target]]
[[Definition:Working capital true-up]]
**Warranties, representations, and indemnities**
[[Definition:Bring-down condition]]
[[Definition:Bring-down warranty]]
[[Definition:Catch-all warranty]]
[[Definition:Compliance warranty]]
[[Definition:Double materiality scrape]]
[[Definition:Fundamental warranty]]
[[Definition:General warranty]]
[[Definition:Insurance warranty]]
[[Definition:Knowledge qualifier]]
[[Definition:Knowledge scrape]]
[[Definition:Management warranty]]
[[Definition:Materiality qualifier]]
[[Definition:Materiality scrape]]
[[Definition:No-leakage warranty]]
[[Definition:Regulatory warranty]]
[[Definition:Repetition of warranty]]
[[Definition:Representations and warranties (R&W)]]
[[Definition:Representations and warranties insurance (R&W insurance)]]
[[Definition:Seller warranty]]
[[Definition:Solvency warranty]]
[[Definition:Tax warranty]]
[[Definition:Title and capacity warranty]]
[[Definition:Title warranty]]
[[Definition:Warranty]]
[[Definition:Warranty and indemnity insurance (W&I insurance)]]
[[Definition:Warranty breach]]
[[Definition:Warranty qualifier]]
[[Definition:Warranty repeater clause]]
[[Definition:Warranty survival period]]
**Indemnification and liability**
[[Definition:Basket (deductible basket)]]
[[Definition:Basket threshold]]
[[Definition:Cap on indemnification]]
[[Definition:Claw-back clause]]
[[Definition:De minimis threshold]]
[[Definition:Environmental indemnity clause]]
[[Definition:Escrow account]]
[[Definition:Escrow release condition]]
[[Definition:Holdback]]
[[Definition:Indemnification clause]]
[[Definition:Indemnity cap]]
[[Definition:Indemnity escrow]]
[[Definition:Indemnity holdback]]
[[Definition:Liability cap]]
[[Definition:Mini basket]]
[[Definition:No-claim declaration]]
[[Definition:Retention amount]]
[[Definition:Seller protection clause]]
[[Definition:Specific indemnity]]
[[Definition:Specific tax indemnity]]
[[Definition:Survival clause]]
[[Definition:Survival period]]
[[Definition:Tax covenant]]
[[Definition:Tax indemnity]]
[[Definition:Third-party claim procedure]]
[[Definition:Threshold amount (de minimis)]]
[[Definition:Time limitation clause]]
[[Definition:Tipping basket]]
[[Definition:Tipping basket mechanism]]
[[Definition:Transaction liability insurance]]
**Key clauses and covenants**
[[Definition:Acceleration clause]]
[[Definition:Anti-embarrassment clause]]
[[Definition:Anti-sandbagging clause]]
[[Definition:Anti-tilting provision]]
[[Definition:Anti-trust approval]]
[[Definition:Break fee]]
[[Definition:Breakup fee]]
[[Definition:Change of control clause]]
[[Definition:Change of control notification]]
[[Definition:Condition precedent (CP)]]
[[Definition:Condition precedent to completion (CPC)]]
[[Definition:Condition subsequent]]
[[Definition:Closing condition]]
[[Definition:Covenant not to compete]]
[[Definition:Drag-along right]]
[[Definition:Exclusivity agreement]]
[[Definition:Exclusivity period]]
[[Definition:Good leaver clause]]
[[Definition:Hell-or-high-water clause]]
[[Definition:Interim breach clause]]
[[Definition:Interim operating covenant]]
[[Definition:Interim period]]
[[Definition:Key person clause]]
[[Definition:Long-stop date]]
[[Definition:Material adverse change clause (MAC clause)]]
[[Definition:Material adverse effect (MAE)]]
[[Definition:Merger clause (entire agreement clause)]]
[[Definition:No-shop clause]]
[[Definition:Non-compete agreement]]
[[Definition:Non-solicitation clause]]
[[Definition:Ordinary course covenant]]
[[Definition:Outward reinsurance clause]]
[[Definition:Post-completion covenant]]
[[Definition:Pre-closing covenant]]
[[Definition:Pro-sandbagging clause]]
[[Definition:Regulatory change of control approval]]
[[Definition:Reverse breakup fee]]
[[Definition:Sandbagging clause]]
[[Definition:Tag-along right]]
[[Definition:Vesting acceleration]]
**Due diligence**
[[Definition:Actuarial due diligence]]
[[Definition:Buy-side due diligence]]
[[Definition:Data room]]
[[Definition:Due diligence]]
[[Definition:Financial due diligenceOutsourcing]]
[[Definition:Insourcing]]
[[Definition:Incurred but not reported reserve review (IBNR reserve review)]]
[[Definition:IndependentPreferred actuarial opinionsupplier]]
[[Definition:LegalSupplier due diligenceevaluation]]
[[Definition:MergerTotal controlcost filingof ownership (TCO)]]
[[Definition:OperationalProcurement due diligencelifecycle]]
[[Definition:RegulatoryContract due diligencemanagement]]
[[Definition:Sell-sideMaster dueservice diligenceagreement (MSA)]]
[[Definition:TaxStatement dueof diligencework (SOW)]]
[[Definition:UnderwritingSpend due diligenceanalysis]]
[[Definition:Category management]]
[[Definition:Strategic sourcing]]
**Integration and separation**
[[Definition:AcquisitionCompetitive integration plantendering]]
[[Definition:Day-oneVendor readinesslock-in]]
[[Definition:Expense synergySubcontracting]]
[[Definition:Integration planning]]
[[Definition:Integration risk]]
[[Definition:Post-merger integration (PMI)]]
[[Definition:Pre-completion reorganization]]
[[Definition:Separation agreement]]
[[Definition:Stranded cost]]
[[Definition:Synergy]]
[[Definition:Transitional service agreement (TSA)]]
[[Definition:Transitional trademark license]]
**Insurance-specific M&A terms**
[[Definition:Carve-out financial statement]]
[[Definition:Economic loss approach]]
[[Definition:Insurance license transfer]]
[[Definition:License novation]]
[[Definition:Standalone financial statement]]
**Transaction process and closing**
[[Definition:Closing date]]
[[Definition:Co-investment]]
[[Definition:Finder's fee]]
[[Definition:Investment banking fee]]
[[Definition:Initial public offering (IPO)]]
[[Definition:Sell-side process]]
[[Definition:Signing date]]
**Agreements and principal documents**
[[Definition:Asset purchase agreement (APA)]]
[[Definition:Break fee agreement]]
[[Definition:Business transfer agreement (BTA)]]
[[Definition:Confidentiality agreement (CA)]]
[[Definition:Definitive agreement]]
[[Definition:Employee transfer agreement]]
[[Definition:Equity commitment letter]]
[[Definition:Escrow agreement]]
[[Definition:Exclusivity letter]]
[[Definition:Expert determination agreement]]
[[Definition:Heads of agreement]]
[[Definition:Heads of terms (HoT)]]
[[Definition:Holdback agreement]]
[[Definition:Letter of intent (LOI)]]
[[Definition:Memorandum of understanding (MOU)]]
[[Definition:Non-disclosure agreement (NDA)]]
[[Definition:RetentionPurchase agreementorder (PO)]]
[[Definition:Share purchase agreementProcure-to-pay (SPAP2P)]]
[[Definition:ShareholderSupplier agreementonboarding]]
[[Definition:Side letterBenchmarking]]
[[Definition:TermTail sheetspend]]
[[Definition:TransferBusiness agreementcontinuity planning (BCP)]]
[[Definition:Sole sourcing]]
[[Definition:Single sourcing]]
**Deeds**
[[Definition:Deed of adherenceMulti-sourcing]]
[[Definition:Deed of covenantNearshoring]]
[[Definition:Deed of indemnityOffshoring]]
[[Definition:Deed of novationOnshoring]]
[[Definition:DeedManaged ofservice releaseprovider (MSP)]]
[[Definition:DeedBusiness ofprocess terminationoutsourcing (BPO)]]
[[Definition:DeedInformation oftechnology transferoutsourcing (ITO)]]
[[Definition:DeedVendor of undertakingconsolidation]]
[[Definition:ManagementSupplier warranty deeddiversity]]
[[Definition:Framework agreement]]
[[Definition:Blanket purchase agreement (BPA)]]
[[Definition:Rate card]]
[[Definition:Cost-benefit analysis (CBA)]]
[[Definition:Return on investment (ROI)]]
[[Definition:Value for money (VFM)]]
[[Definition:Negotiation strategy]]
[[Definition:Best and final offer (BAFO)]]
[[Definition:Invitation to tender (ITT)]]
[[Definition:Evaluation criteria]]
[[Definition:Weighted scoring model]]
[[Definition:Proof of concept (POC)]]
[[Definition:Pilot programme]]
[[Definition:Vendor risk assessment]]
[[Definition:Supplier scorecard]]
[[Definition:Contract renewal]]
[[Definition:Auto-renewal clause]]
[[Definition:Termination for convenience]]
[[Definition:Exit strategy]]
[[Definition:Transition plan]]
[[Definition:Change control]]
[[Definition:Scope creep]]
[[Definition:Escalation procedure]]
[[Definition:Governance framework]]
[[Definition:Steering committee]]
[[Definition:Stakeholder management]]
[[Definition:Demand management]]
[[Definition:Specification]]
[[Definition:Compliance requirement]]
[[Definition:Regulatory outsourcing obligation]]
[[Definition:Material outsourcing]]
[[Definition:Critical service provider]]
[[Definition:Concentration risk]]
[[Definition:Fourth-party risk]]
[[Definition:Supply chain risk]]
[[Definition:Right to audit clause]]
[[Definition:Data processing agreement (DPA)]]
[[Definition:Intellectual property rights (IPR)]]
[[Definition:Indemnification clause]]
[[Definition:Limitation of liability]]
[[Definition:Force majeure]]
[[Definition:Liquidated damages]]
[[Definition:Penalty clause]]
[[Definition:Earnback mechanism]]
[[Definition:Gain-sharing arrangement]]
[[Definition:Fixed-price contract]]
[[Definition:Time-and-materials contract (T&M)]]
[[Definition:Cost-plus contract]]
[[Definition:Outcome-based contract]]
[[Definition:Maverick spend]]
[[Definition:Spend under management]]
[[Definition:Savings target]]
[[Definition:Budget holder]]
[[Definition:Approval workflow]]
[[Definition:Delegated authority]]
[[Definition:Procurement policy]]
[[Definition:Ethical sourcing]]
[[Definition:Environmental, social, and governance criteria (ESG)]]
[[Definition:Sustainable procurement]]
[[Definition:Vendor performance review]]
[[Definition:Continuous improvement]]
[[Definition:Market analysis]]
[[Definition:Make-or-buy decision]]
[[Definition:Incumbent supplier]]
[[Definition:Gross written premiums (GWP)]]
**Process documents**
[[Definition:BidCombined letterratio (CR)]]
[[Definition:BindingUnderlying offer (BO)earnings]]
[[Definition:BoardUnderlying approvalearnings resolutionper share (UEPS)]]
[[Definition:BoardUnderlying informationreturn memorandumon equity (URoE)]]
[[Definition:Buyer'sNet closing certificateincome]]
[[Definition:CapitalizationSolvency tableII (cap table)ratio]]
[[Definition:ClosingEligible agendaown funds (EOF)]]
[[Definition:ClosingContractual bibleservice margin (CSM)]]
[[Definition:ClosingNew checklistbusiness value (NBV)]]
[[Definition:ClosingNew memorandumbusiness value margin]]
[[Definition:ComfortPresent lettervalue of expected premiums (PVEP)]]
[[Definition:CommitmentNew letterbusiness contractual service margin (NB CSM)]]
[[Definition:CompanyCSM disclosure letterrelease]]
[[Definition:CompletionTechnical board minutemargin]]
[[Definition:CompletionTechnical statementexperience]]
[[Definition:ConfidentialNet information memorandum (CIM)flows]]
[[Definition:Conflict clearance letterUnit-linked]]
[[Definition:ConsentGeneral solicitationaccount document(GA)]]
[[Definition:CorporateProperty authorityand documentcasualty insurance (P&C)]]
[[Definition:CorporateLife structureand charthealth insurance (L&H)]]
[[Definition:DataCommercial room indexlines]]
[[Definition:DataPersonal room rules letterlines]]
[[Definition:Disclosure bundleReinsurance]]
[[Definition:DisclosureManaging lettergeneral agent (MGA)]]
[[Definition:DisclosureNatural schedulecatastrophe charges (Nat Cat)]]
[[Definition:DraftPrior shareyears' purchasereserve agreement (draft SPA)development]]
[[Definition:DueClaims diligence checklistreserve]]
[[Definition:DueUnwind diligenceof questionnaire (DDQ)discount]]
[[Definition:DueLoss diligence reportratio]]
[[Definition:EmbeddedExpense value report (EV report)ratio]]
[[Definition:EstimatedCurrent completionyear statementloss]]
[[Definition:ExpressionShort-tail of interest (EOI)lines]]
[[Definition:FairnessLong-tail opinionlines]]
[[Definition:FeeCasualty arrangement letterinsurance]]
[[Definition:FinalFinancial bid letterlines]]
[[Definition:Final offer letterProtection]]
[[Definition:FinancialSavings due diligence reportinsurance]]
[[Definition:FinancialEndowment modelproduct]]
[[Definition:FundsSingle flow statementpremium]]
[[Definition:GapWhole-life analysisproduct]]
[[Definition:General disclosureBancassurance]]
[[Definition:IncurredDirect but not reported analysis (IBNR analysis)insurance]]
[[Definition:IndependentMotor actuarial reviewinsurance]]
[[Definition:IndependentFire expert reportinsurance]]
[[Definition:IndicativeWorkers' offer lettercompensation]]
[[Definition:InformationGroup memorandumlife (IM)insurance]]
[[Definition:InformationHealth request list (IRL)insurance]]
[[Definition:InsuranceComplementary licensehealth scheduleinsurance]]
[[Definition:InsuranceRetail portfolio summarymotor]]
[[Definition:InvestmentSocial committee memorandum (IC memo)inflation]]
[[Definition:InvestorMarket presentationsoftening]]
[[Definition:ITPricing due diligence reportcycle]]
[[Definition:KeyCapital-light person term sheetproduct]]
[[Definition:Legal due diligence reportSurrender]]
[[Definition:List of material contractsPersistency]]
[[Definition:Litigation scheduleUnderwriting]]
[[Definition:Locked-box completion statementPruning]]
[[Definition:Loss reserve analysisEarn-through]]
[[Definition:ManagementDebt due diligence reportgearing]]
[[Definition:ManagementRestricted equityTier plan1 capital (RT1)]]
[[Definition:ManagementTier presentation2 capital]]
[[Definition:ManagementLoss representationabsorption lettermechanism]]
[[Definition:Markup (contract markup)Write-down]]
[[Definition:MaterialCredit contract summaryspread]]
[[Definition:MergerInvestment filing documentgrade]]
[[Definition:MergerHigh notification formyield]]
[[Definition:Non-bindingCorporate offer (NBO)spread]]
[[Definition:Non-bindingSolvency offercapital letterrequirement (SCR)]]
[[Definition:Non-relianceOrganic lettercash upstream]]
[[Definition:NotificationDividend letterpayout to policyholdersratio]]
[[Definition:NotificationTotal letterpayout to regulatorsratio]]
[[Definition:OfferShare letterbuy-back]]
[[Definition:OperationalNormalized dueown diligencefunds reportgeneration]]
[[Definition:OutstandingOperating claims schedulereturn]]
[[Definition:PensionForeseeable due diligence reportdividend]]
[[Definition:PermittedComparable leakage schedulebasis]]
[[Definition:PolicyConstant registerexchange extractrate basis]]
[[Definition:Post-closingScope adjustment statementeffect]]
[[Definition:Pre-completionIntercompany reorganization planelimination]]
[[Definition:Process letter]]
[[Definition:Proof of funds letter]]
[[Definition:Purchase price allocation report (PPA report)]]
[[Definition:Q&A log (questions and answers log)]]
[[Definition:Red flag report]]
[[Definition:Register of members]]
[[Definition:Regulatory approval application]]
[[Definition:Regulatory due diligence report]]
[[Definition:Reinsurance contract schedule]]
[[Definition:Reinsurance program summary]]
[[Definition:Reinsurance recoverables schedule]]
[[Definition:Reliance letter]]
[[Definition:Representations and warranties insurance application (R&W insurance application)]]
[[Definition:Reserve adequacy report]]
[[Definition:Run-off cost estimate]]
[[Definition:Run-off plan]]
[[Definition:Schedule of exceptions]]
[[Definition:Scheme document]]
[[Definition:Scheme of arrangement document]]
[[Definition:Seller's closing certificate]]
[[Definition:Seller's disclosure schedule]]
[[Definition:Sensitivity analysis]]
[[Definition:Share transfer form]]
[[Definition:Shareholder resolution]]
[[Definition:Signing protocol]]
[[Definition:Stock transfer form]]
[[Definition:Supplementary disclosure letter]]
[[Definition:Tax clearance application]]
[[Definition:Tax due diligence report]]
[[Definition:Tax structuring memorandum]]
[[Definition:Teaser (blind teaser)]]
[[Definition:Third-party consent letter]]
[[Definition:Transaction structure memorandum]]
[[Definition:Valuation report]]
[[Definition:Vendor assist report]]
[[Definition:Vendor due diligence (VDD)]]
[[Definition:Vendor due diligence report (VDD report)]]
[[Definition:Vendor financial model]]
[[Definition:Warranty and indemnity insurance policy (W&I insurance policy)]]
[[Definition:Working capital analysis]]
[[Definition:Working capital statement]]
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