Glossary Terms

A technology for managing all your company’s relationships and interactions with customers and potential customers.

Existing in law, or having formal, legitimate, moral, or rightful effect, force, or possession.

Depreciation is a method of spreading the cost of an asset over a specified period of time, typically the asset’s useful life. The purpose of depreciation is to match the expense of obtaining an asset to the income it helps a company receives. Depreciation is used for tangible assets, which… Read More »Depreciation

A reduction in value or the act of reducing value.

An amount or percentage deducted from the value of an ownership interest to reflect the relative absence of marketability. Discounts for lack of marketability (DLOM) attempt to capture the disadvantages of owning a relatively illiquid investment without a ready market on which to trade it.

A rate of return used to convert a future monetary sum into present value.

A method within the income approach whereby the present value of future expected net cash flows is calculated using a discount rate.

A method within the income approach whereby the present value of future expected economic benefits is calculated using a discount rate.

The earnings of a business enterprise prior to the following items: income taxes, non-operating income, and expenses, nonrecurring income and expenses, depreciation and Amortization, interest expense or income, one owner’s entire compensation, including benefits and any non-business or personal expenses paid by the business. Seller’s Discretionary Earnings (SDE) and Seller’s… Read More »Discretionary Earnings (DE)

Selling of, or otherwise disposal of, a firm’s assets to achieve a desired objective, such as greater liquidity, reduced debt burden or elimination of non-core operations.