Public Transaction
A purchase or sale of assets in which there will typically be no identifiable party to stand behind the obligations of the transaction after closing. In a public company transaction, the target company is subject to ongoing disclosure requirements by the Securities and Exchange Commission. This means that there is a significant amount of information […]
Purchase Agreement (PA)
A sales and purchase agreement (PA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. An PA serves as a basis for a transaction to take place, providing a framework of how the transaction will proceed, what is included in the transaction, and, if necessary, […]
Purchase Amount
Amount paid for an asset. The final amount sent from the SPV to the company or sponsor in exchange for the asset. The purchase amount should be stated in the purchase agreement.