NewCo

Definition

The new company a buyer forms to sign for and own the business.

Why It Matters

Buying through a fresh entity is how a seller's history stays out of what you own, and it is also where the ownership split, the voting rules, and any investor rights get written down. It has to exist, have its own bank account, and be ready to sign well before the closing date, so forming it belongs on the early list rather than the closing-week one.