Business Broker - assist buyers and sellers of privately held small business in the buying and selling process. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation and generally assist with the business sale.
Cash Flow - profit after principal and interest are deducted from net operating income (NOI). Cash Flow is not the same thing as profit or net.
Confidentiality Agreement - a pact that forbids buyers, sellers and their agents in a given business deal from disclosing information about the transaction to others.
Contingencies - in a buy-sell agreement are conditions which must be met if the contract is to be performed.
Dual Agency - occurs when the same brokerage represents both the seller and the buyer under written agreements.
Due Diligence - in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition.
M & A (mergers and acquisitions) - business brokers do participate in mergers and acquisitions activities when it involves a transaction between two or more smaller companies. Business brokers and M&A firms do overlap activities in the extremes of their market.
NDA (non-disclosure agreement) - also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement, is a contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another.
NNN - triple net lease. Is a lease agreement where the tenant is responsible for paying all real estate taxes, building insurance and maintenance.
Representation Agreement (A listing contract) - is a contract between a real estate broker (or their agent representatives, acting in the broker's name) and a seller or sellers of real property to give the broker the right to offer the property or business for sale.
SBA - Small Business Administration.
SBA bank ratings;
GP - (General Program) This is the lowest rating and is given to a lender who knows little about the SBA process.
CLP - (Certified Lender Program) This process is for the more experienced lender who have graduated beyond the GP status.
PLP - (Preferred Lender Program) This is the top designation and enables the respective lenders to approve their own loans with no additional underwriting by the SBA.
Stock Sale - the buyer purchases stock in a company that may have unknown or uncertain liabilities.