Capital Structure – The composition of the invested capital of a business enterprise and the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. It may also include information about stock, options, warrants and who owns or contributed them.
On Thursday, April 1st, 2021, Matt Cassedy, Principal of Analytic Business Appraisers, LLC joined the Delta Business Bite. In this snippet, we discuss the types of information needed to perform an Appraisal. Learn more about Analytic Business Appraisers, LLC here: https://analyticbusinessappraisers.com/ 7272 E Indian School Rd #540 Scottsdale, AZ 85251 Phone:… Read More »2021-04-01-03 What Information is Most Important?
Working Capital – The excess of the value of the current assets over the value of the current liabilities. This value will be negative if current liabilities exceed current assets. Understanding your needs Getting a true understanding of your working capital needs may involve plotting month-by-month inflows and outflows for… Read More »Delta Tuesday Term – Working Capital
A disclosure document that provides information about an investment offering to the public and that is required to be filed with the Securities and Exchange Commission (SEC) or local regulator. A business prospectus contains information about the company, its management team, recent financial performance, risks and other related information that… Read More »Delta Tuesday Term – Business Prospectus
A CBR is drafted by a brokerage firm or business broker to market a business to prospective buyers. It contains information about the business, including its products, markets, competition, and financial performance. The CBR is provided only to qualified buyers who have signed non-disclosure agreements (NDA’s). This can also be… Read More »Delta Tuesday Term – Confidential Business Review (CBR)
Amortization – This is an accounting technique, used for tax planning purposes, to periodically lower the book value of a loan or an intangible asset over a set period of years. This is accomplished by monthly lowering the intangible asset value on the balance sheet by a specific amount and… Read More »Delta Tuesday Term – Amortization
Asset Sale – This term has two definitions. The proper definition depends on its usage: A. The means by which a business owner transfers ownership of tangible and intangible assets, and possibly some liabilities, to another owner without transferring the ownership entity. B. The sale of a business enterprise that… Read More »Delta Tuesday Term – Asset Sale
One company taking over controlling interest in another company. More about Acquisitions from https://www.investopedia.com/terms/a/acquisition.asp: Why Make an Acquisition? Companies acquire other companies for various reasons. They may seek economies of scale, diversification, greater market share, increased synergy, cost reductions, or new niche offerings. Other reasons for acquisitions include those listed below.… Read More »Delta Tuesday Term – Acquisition
A business’ net income plus non-cash charges (depreciation, amortization, depletion). Can be defined (if so qualified) as before or after such items as taxes, debt service (interest only or principal & interest), or extraordinary items. (Should not be confused with net cash flow, a.k.a. free cash flow).
Balance Sheet – A financial statement that is one of the three important financial statements used for reporting a company’s financial performance, with the other two key statements being the income statement and the statement of cash flows. The balance sheet is a statement of the financial status of the… Read More »Delta Tuesday Term – Balance Sheet