Glossary of Terms
Add Backs
An adjustment to financial statements for expenses paid by the business that are either of a personal
nature or an extraordinary one off expense. Owners salaries are commonly found in the add back schedule.
Business Profile
Package designed to introduce the business to potential buyers. Will generally incorporate financial
information along with details on the operational side of the business.
Confidentiality Agreement
To be completed by potential buyers before detailed information on businesses for sale is provided.
Due Diligence
Process usually carried out by the buyers Accountant whereby a more detailed investigation into the
business financials, productions, sales etc is carried out.
EBIT
Earnings Before Interest & Tax
F & F
Fixtures & Fittings
P & E
Plant & Equipment
PAMD 21a
Required by the QLD Government, used to appoint commercial real estate agents for the sale or purchase
of non-residential property.
ROI
Return on Investment
SAV
Stock at Value
T/O
Turnover
TOL
Take Over Lease
W/C
Working Capital
WIWO
Walk In Walk Out (stock on hand is included in the selling price)