Legal Due Diligence
Review of contracts, ownership, employment, disputes and other legal matters.

Letter of Intent (LOI)
A preliminary document recording the parties’ intention to transact.

Leverage
The extent to which a business or group is funded with debt.

Liability Cap
The maximum amount recoverable for specified claims.

Limitation of Liability
Contractual restrictions on the amount, timing or circumstances of a claim.

Liquid Assets Requirement
A requirement to maintain sufficient eligible liquid assets.

Locked Box Accounts
A set of accounts dated before Completion by reference to which the equity value is fixed and economic risk passes under the agreed locked-box mechanism. Acquisitions are transacted using either the Locked Box approach or the Completion Accounts approach.

Longstop Date
A future date by which the transaction or specified contractual event must occur, failing which a party may have a right to terminate.