Glossary of Financial Terms

(Sellers and brokers are instructed to arrive at their financial figures using the definitions below.)

Important!

Be aware that all financial figures and other information provided are not verified by Sunbelt Business Sales & Acquisitions Always discuss with the seller/broker how they arrived at their financial figures. (Note: The financials presented in the ads are annual figures, not monthly, unless otherwise indicated.)

Asking Price - The seller's asking price for the business.

Annual Receipts - Gross sales in dollars for last full fiscal year.

Cash Flow - Dollars available to business owner from operations of company (business earnings before interest, taxes, depreciation and owners compentsation assuming it's an owner operated business).

Downpayment - The amount of cash a qualified buyer needs to qualify for seller financing.

FF&E - The seller's asking price for the business's Furniture Fixtures & Equipment.

Rent - Monthly current payment to landlord or seller for facility lease.

Monthly Payroll - Salaries and wages to employees.

Inventory - Goods or products required in the day-to-day operation of the business that are available for re-sale.