Glossary Terms

Investment assets that can be quickly converted into cash, typically within 3 months.

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).

A financial statement that displays the sources and uses of cash over a period of time. The Cash Flow Statement groups together funds in all activities whether they are in “Operations,” “Financing,” or “Investments.”

An entity with whom a Business Broker has a fiduciary relationship.

The final steps in the sale of the business. The closing entails execution of all necessary legal documents and funding to consummate the transaction.

An attorney who assembles all of the closing documents and coordinates/facilitates the closing process. Also known as Closing Agent.

An agreement between two or more business brokers or brokerage firms for sharing the responsibilities for and the fees from the completion of a transaction.

A business broker who shares services, responsibility and compensation on behalf of a client.

Lists and sells physical property (the real estate that a business occupies).

Equity investment funds readily available to an investor to make investments according to a predefined investment strategy. Related uses or terms: capital under management, capital available for investment.