Academy/Glossary

Advisor Standard Academy

Glossary

Definitions for the terms you will encounter when buying, selling, or valuing a Canadian business.

2

A

Add-Back Adjusted Cost Base (ACB)Asset Sale Attribution Rules

B

Blind Listing and Teaser Broker Opinion of Value (BOV)Business Broker Business Valuation

C

CABB (Canadian Association of Business Brokers)Capital Cost Allowance (CCA)Capital Dividend Account (CDA)Capital Gains CBI (Certified Business Intermediary)CBV (Chartered Business Valuator)CBV Institute CCPC (Canadian-Controlled Private Corporation)Change of Control CIM (Confidential Information Memorandum)Closing Comparable Transaction Conditions Precedent Customer Concentration

D

Data Room Deemed Disposition Discounted Cash Flow (DCF)Due Diligence

E

Earn-Out EBITDA EBITDA Multiple Engagement Letter Enterprise Value Environmental Site Assessment (ESA)Equity Value Escrow Estate Freeze Exclusivity

F

Fair Market Value (FMV)Family Trust Financial Buyer Financial Statement Standards (NTR, Review, Audit)

G

Goodwill GST/HST Clearance Certificate

H

I

IBBA (International Business Brokers Association)Inclusion Rate Indemnification

K

Key Person Risk

L

LCGE (Lifetime Capital Gains Exemption)Lehman Formula Letter of Intent (LOI)Leverage

M

M&A Advisor M&AMI (Mergers and Acquisitions Master Intermediary)MAC Clause (Material Adverse Change)Management Buyout (MBO)

N

NDA (Non-Disclosure Agreement)Non-Compete Agreement Non-Solicitation Normalization Notice of Objection

P

Private Equity Promissory Note Purchase Agreement Purification

Q

QSBC (Qualified Small Business Corporation)Quality of Earnings (QoE)

R

Recurring Revenue Representations and Warranties Retainer

S

SaaS (Software as a Service)SDE (Seller's Discretionary Earnings)Section 85 Rollover Seller Financing Share Sale Strategic Buyer Success Fee Successor Employer

T

T2 Corporate Tax Return Tail Provision TOSI (Tax on Split Income)Transition Period

V

Vendor Take-Back (VTB)

W

Working Capital

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