Financial statements in which each line is expressed as a percentage of the total. On the balance sheet, each line item is shown as a percentage of total assets, and on the income statement, each item is expressed as a percentage of sales. It is used to make comparisons with… Read More »Common Size Statements
A CBR is drafted by a brokerage firm or business broker to market a businesss 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. See Confidential Information Memorandum (CIM).
Sometimes call “the book” or pitchbook is drafted by an M&A advisory firm or investment banker for a sell-side engagement to market a business to prospective buyers. It Contains financial information, including analysis of historical results and future projections. See Confidential Business Review (CBR).
A requirement that must be met or removed before a closing can take place.
The power to direct the management and policies of a business enterprise. Usually defined by the party(ies) that own majority interest in the enterprise which may be overruled by the company’s operating or shareholder agreement.
Business brokers who share their knowledge, expertise and skills for the benefit of the business brokerage profession, clients, customers and the public good. See also Co-Brokerage and Co-Business Broker.
A general way of determining a value indication of an individual asset by quantifying the amount of money required to replace the future service capability of that asset.
The expected rate of return that the market requires in order to attract funds to a particular investment.
A grouping of those expenses applicable to the materials and labor associated directly with the goods or services delivered.
An entity to a transaction who receives services and benefits, but has no fiduciary relationship with the Business Broker.