Glossary Terms

Method that addresses pricing based on what a buyer can afford to pay for the cash flow of the business.

See Discretionary Earnings.

See Discretionary Earnings.

Guarantor/backer of loans offered by banks or credit unions. Note: In Canada called Small Business Loan SBL also provides other services for small businesses.

Acquirers who believe they can enjoy post-acquisition economies of scale, synergies or strategic advantages by combining the acquired business interest with their own. Also known as Strategic Buyers.

The identification of the type of value being used in a specific engagement (e.g., fair market value, fair value, Investment Value).

STRATEGIC BUYERThe strategic buyer is a company looking to grow by acquiring another business that has synergies with its own. For a synergistic buyer, 1+1=3. Strategic buyers may be looking to grow market share in the same industry, find new products or services to sell to their existing customer base,… Read More »Strategic Buyer

Physical assets (such as cash, accounts receivable, inventory, property, plant and equipment, etc.).

An document circulated to potential buyers of a specific business is for sale without disclosing the identity of the business. The documents, often prepared by an advisor, details information that is designed to entice potential buyers.

Telemarketing means contacting people – usually by phone – in order to sell a product or service, gather information, or persuade people to do something.