[Crawl-Date: 2026-04-04] [Source: DataJelly Visibility Layer] [URL: https://travisbusinessadvisors.com/glossary] --- title: Business Sale Glossary | Travis Business Advisors description: Plain-English definitions for every term you'll encounter when buying or selling a business. SDE, EBITDA, add-backs, SBA loans, earnouts, and 250 more. url: https://travisbusinessadvisors.com/glossary canonical: https://travisbusinessadvisors.com/glossary og_title: Business Sale Glossary | Travis Business Advisors og_description: Plain-English definitions for every term you'll encounter when buying or selling a business. SDE, EBITDA, add-backs, SBA loans, earnouts, and 250 more. og_image: https://travisbusinessadvisors.com/og-image.jpg twitter_card: summary_large_image twitter_image: https://pub-bb2e103a32db4e198524a2e9ed8f35b4.r2.dev/b678bd1a-231d-41a5-b907-574f779977fe/id-preview-ec5fc006--8fbc5bd6-325b-47b4-904a-9631a9a9c5ae.lovable.app-1774845153828.png --- # Business Sale Glossary | Travis Business Advisors > Plain-English definitions for every term you'll encounter when buying or selling a business. SDE, EBITDA, add-backs, SBA loans, earnouts, and 250 more. --- ## Business Sale & Acquisition Glossary 272 terms defined in plain English. The reference guide for business owners navigating a sale or acquisition. 272 Terms ABCDEFGHIJKLMNOPQRSTUVWXYZ AccountingBrokerageBuyerDeal StructureDue DiligenceExit PlanningIndustryLegalLendingM&AMarketMarketingOperationsPost-ClosingReal EstateTaxTechnologyTexasValuation A19 terms Accounts Payable Accounts Receivable Accredited Business Intermediary Accrual Basis Accounting Acquisition Acquisition Criteria Add-Back Adjusted EBITDA Advisory Fee All-Cash Deal Allocation of Purchase Price American Business Brokers Association Amortization Appraisal Asset Purchase Agreement Asset Sale Assisted Living Facility Assumed Liabilities Austin-Round Rock-San Marcos MSA B23 terms Baby Boomer Balloon Payment Best and Final Offer Bill of Sale Blind Auction Blind Profile Bolt-On Acquisition Book of Business Book Value Break-Even Analysis Bridge Loan Broker Opinion of Value Broker-of-Record Build-Out Cost Bulk Sale Business Broker Business Continuity Plan Business Valuation Buyer Pool Buyer Representation Agreement Buyer's Agent Buyer's Agent Fee Buzzsprout C31 terms Cap Rate Capital Expenditure Capital Gains Capital Gains Tax Capitalization of Earnings Cash Basis Accounting Cash Flow Cash Sweep Cash-on-Cash Return Certificate of Occupancy Change of Control Provision Child Care Licensing CIM Clawback Climate-Controlled Storage Closing Closing Conditions Closing Costs Co-Brokerage Commercial Mortgage-Backed Securities Common Area Maintenance Comparable Transactions Confidential Information Memorandum Confidentiality Agreement Consolidator Consulting Agreement Contingency Convenience Store Covenant Not to Compete Customer Attrition Customer Concentration D20 terms Data Room Days on Market Days Sales Outstanding Deal Fatigue Deal Flow Deal Structure Debt Service Coverage Ratio Debt-to-Equity Ratio Deed of Trust Definitive Agreement Dental Service Organization Depreciation Depreciation Recapture Disclosure Schedule Discounted Cash Flow Discretionary Earnings Down Payment DSO (Dental) Dual Agency Due Diligence E18 terms Earnest Money Deposit Earnout Easement EBITDA Emotional Attachment Premium Employment Agreement Engagement Letter Enterprise Value Entity Structure Environmental Assessment Equity Injection Equity Roll Escrow Escrow Holdback Exclusivity Period Exit Planning Exit Strategy Express Tunnel Car Wash F10 terms Fair Market Value Family Succession Fiduciary Duty Financial Buyer Fixtures Franchise Agreement Franchise Tax Free Cash Flow Full-Time Equivalent Funeral Home G7 terms Generally Accepted Accounting Principles Going Concern Value Good Faith Deposit Goodwill Grandfathered Gross Margin Gross Revenue H4 terms Hill Country Holdback Horizontal Integration HVAC I12 terms IBBA Indemnification Indemnification Basket Indemnification Cap Independent Contractor Installment Sale Insurance Assignment Intellectual Property Intellectual Property Assignment Interest Rate Inventory Investment Value K2 terms Key Employee Key-Person Risk L14 terms Laundromat Lease Assignment Lease Review Lehman Formula Letter of Credit Letter of Intent Leverage Lien Lien Search Lifestyle Business Liquidation Value Listing Agreement Loan-to-Value Ratio LOI M15 terms M&A Attorney Main Street Business Management Buyout Management Service Agreement Marina Market Approach Material Adverse Change Material Contract Mergers & Acquisitions Mezzanine Financing Middle Market Mobile Home Park MRR Multiple Multiple Arbitrage N10 terms Net Income Net Operating Income Net-in-Pocket No State Income Tax NOI Non-Compete Agreement Non-Disclosure Agreement Non-Solicitation Agreement Normalization Normalized Financial Statements O5 terms Off-Market Deal Operating Agreement Opportunity Zone Owner Benefit Owner Dependency P14 terms Peg Personal Guarantee Phantom Income Phase I Environmental Platform Acquisition Post-Closing Adjustment Pre-Closing Covenants Private Equity Pro Forma Profit and Loss Statement Promissory Note Property Tax Reassessment Purchase Agreement Purchase Price Allocation Q2 terms Qualified Buyer Quality of Earnings R10 terms Real Estate Intensive Business Recasting Recurring Revenue Representations and Warranties Retention Bonus Return on Investment Right of First Refusal Right of Offset ROBS Roll-Up S27 terms Sale-Leaseback SBA 504 Loan SBA 7(a) Loan SDE Search Fund Section 1031 Exchange Section 197 Intangibles Section 338(h)(10) Section 338(h)(10) Election Seller Financing Seller Note Seller's Discretionary Earnings Seller's Market Semi-Absentee Sensitivity Analysis Shadow Equity Silver Tsunami Standby Seller Note Strategic Buyer Strategic Premium Subordination Success Fee Successor Liability Survival Period Synergy T16 terms TABB Tax Basis Tax-Free Reorganization Teaser Term Sheet Texas Comptroller Texas Real Estate Commission Title Insurance Trailing Twelve Months Training Period Transition Period Transition Risk Travis County Triple-Net Lease True-Up Turnaround Acquisition U2 terms Underground Storage Tank Uniform Commercial Code V5 terms Valuation Multiple Vendor Financing Vertical Integration Veterinary Consolidator Virtual Data Room W5 terms Weighted Average Cost of Capital Wire Fraud Working Capital Working Capital Adjustment Working Capital Peg Z1 terms Zoning ## Want the Complete Glossary as a PDF? Download all 272 terms in a printable reference guide. 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