I
Index
A
Accredited Senior Appraiser (ASA)
Asset deal
Asset purchase agreement (APA)
B
Business sale
APA
asset deal
asset purchase agreement
best time and optimal price
business reasons
CIM
closing of deal
confidentiality agreement
discovery period
due diligence process
ESOP
events
feast-or-famine fee
financial buyers
housing industry
LOI
lucrative fee
M&A transaction
reasonable expectation
retirement forces
risks
sales transaction, tax impact
asset sale
corporation and individual tax
M&A transactions
stock transaction
screening process
stock deal
strategy
success fee
synergistic buyers
teaser
terms of deal
convenant not to compete
deal price
earn-out
payment
seller’s note
transaction team selection
business brokers
intermediary hire
investment bankers
valuation professionals
C
Compound annual growth rate (CAGR)
Confidential information memorandum (CIM)
Confidentiality agreement
Country club lifestyle
compensation
engagement
IRS
nephew
services and valuation report
true value
D
Drew’s Sensational Snacks
business operations
business risk reduction
areas
rate of return
risk factors
enterprise value
facts
growth plan
CAGR
net income
newfound freedom
organic growth/acquisition
sustainable growth
hygiene
income statement
risk concerns
sustainable cash flows
approaches
gross margin percentage
operating expenses
E, F, G, H
Employee stock ownership plan (ESOP)
Enterprise value vs. equity value
Exit strategy and succession plan
I, J, K
Income approaches
discounted cash flow method
normalization process
financial statements
historical earnings
LIFO and FIFO
owner’s compensation issue
single-stream capitalization method
sustainable cash flow level
adjustments
capitalization rate
convertion
discount rate
EBITDA points
risk premium
WACC
Internal Revenue Service (IRS)
Investment mindset
business assets
Wall Street Journal
increasing value
value protection
action option
partial list and description
L, M, N, O
Letter of Intent (LOI)
P, Q, R
Plan to retire
inclusions in plan
items to success
S
Stock deal
T, U
Time for Action. See Plan to retire
V
Valuation approaches See also Income approaches
asset approaches
divorce cases and shareholder disputes
equity value
assumptions
financial analysis
formula
summary
value per share
hand-to-hand combat
market approaches
appraisers
Guideline Public Company method
Guideline Transaction method
Valuation fundamentals
asset approach
business owners
business process
business sale
cash flow
EBITDA
asset and stock sale
date
enterprise value vs. equity value
factors
letter
net proceeds
purpose
standards
economic outlook
historical financial trends
in-depth understanding
industry outlook
IRS Revenue Ruling
management forecast
income approach
market approach
plain English-examples
definitions
scenario
professionals
business valuation
common sense
credible business valuation
review
valuator
fair market value
investment value
use of
have to valuation
should valuation
Value growing
business professionals
accounting and legal service
employee manuals and job descriptions
intangible assets
business value
benefits
goals and plans
key areas
strategies
definition
Drew’s newfound freedom
W, X, Y, Z
Weighted average cost of capital (WACC)
18.191.135.224