Those elements of a business that cause customers to return in sufficient volume to generate profit in excess of a reasonable return on tangible assets. That intangible asset that arises as a result of name, reputation, customer patronage, location, products and similar factors that have not been separately identified and/or… Read More »Goodwill
The value of a business attributable to goodwill.
That portion of net sales that remains after the subtraction of the COGS. See Cost of Goods Sold.
An investment made in an operating company by an outside investor to support existing or anticipated expansion of the business. May or may not include a change of equity Control but frequently involves the exchange of equity ownership. Also called expansion capital or growth equity.
See Earnings
A general way of determining a value indication of a business, business ownership interest, security or intangible asset using one or more methods that convert anticipated economic benefits into a present single amount.
A financial statement that is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows. The income statement primarily focuses on the company’s revenues and… Read More »Income Statement
a) A 1st time buyer typically is leaving corporate America and wishes to control ones own destiny. These may be passive (seeking a good opportunity while others may have very specific industries, geographical areas and/or timelines. More motivated individual buyers are, the more they’ll pay. However, since they have never… Read More »Individual Buyer
Weighted Average Method. Valuation method that uses statistics from comparable businesses.
Represents how the market perceives the risk of a specific industry compared to the market as a whole.