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Glossary of terms used on this site

There are 73 entries in this glossary.
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Term Definition
Valuation Formula

IBT is income before tax. AV is agreed value. NBT is net business debt, the cash owning at a point in time after any insurance proceeds are accounted for. 'Multiple' is a number from one to five that when used to multiply income before tax will give a business value. The multiple is derived after factors of business size, tenure, contractual status, history and management stability is applied.

E.g. [IBT * Multiple] - Nett Business Debt (NBD) = BSA agreed value (AV)

Variable costs

The costs additional to fixed costs of running a business that can vary depending on the level of demand and business activity.

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Julie Says

We are in a syndicate raised by us to purchase a commercial winery. Our accountant was concerned about potential withdrawal of capital and the effect this would have on our bank and remaining backers. Jim was asked to come in, sort it out and get written agreement from all parties as to the movement of capital. He delivered everything we needed and more. Every syndicate member was relaxed and so were our bankers. The legal side was set up by a solicitor of Jims suggestion and it was the simplest set of actions for us all to achieve security of investment.