Balance Sheet – A financial statement that shows the assets and liabilities for a company at a given point in time.
Basket – A dollar amount set forth by the seller in the indemnification provision for any losses suffered by the buyer.
Blue Sky – Any intangible portion of a price above the maximum goodwill that can be reasonably supported through the application of established valuation methodology.
Board Certified Business Valuation – A document that shows financial market value for a business entity. It will be prepared by a third party firm certified to perform valuations and will show substantiation for the value stated.
Book Value – Although primarily an accounting term, book value is the difference between the total assets and total liabilities. It is hoped that this is positive number.
Bottom Fishing – When a buyer looking to “steal” a business and will only pay a very low price for a business.
Bridge Loans – A temporary loan to cover the financing shortfall of the acquisition until permanent funding is available.
Business Appraisal – The act or process of estimating the value of a business using the IRS rules under section RR59-60.
Business Broker – A person who assists buyers and sellers in the business transfer process. Other common names are business transfer specialist, business intermediary, Merger & Acquisition agent and business consultant.
Business Potential – What a business owner wants to base his business sale price off of. In actuality, it is one of the main reasons a buyer chooses a particular business.
Business Valuation – The act or process of estimated value; a determination of monetary value, for some specific date, of the value of a business.