M&A Foundations · glossary
Deal slang for primary and secondary money. In a cash-in, the company issues new shares and the money goes into the business. In a cash-out, a shareholder sells existing shares and keeps the price. Chapter 3
Explained in Chapter 3, Deal Types and Structures, of M&A Foundations.
…Deal slang tracks the same line: a primary subscription is a cash-in (money into the company), a secondary sale is a cash-out (money out to a shareholder). Primary investment is the world of fundraisings and venture capital, documented by a subscription (or investment) agreement plus a shareholders' agreement rather than an SPA. Many real transactions mix the two, though: a fund subscribes for new shares while also buying some founders' shares to give them a partial…Read Chapter 3, Deal Types and Structures →
Every chapter of M&A Foundations is free to read, including the full training share purchase agreement.
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