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CRE & Business Glossary

Key Terms for Buying, Selling & Valuing a Business

Whether you're a first-time seller, a prospective buyer, or a professional advisor, understanding the terminology is essential. This glossary covers the most common terms you'll encounter in business brokerage, M&A, commercial real estate, and business valuation.

A

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Add-Backs (Adjustments)

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Asset Sale

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Asking Price

B

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Broker Opinion of Value (BOV)

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Business Goodwill

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Buyer NDA (Non-Disclosure Agreement)

C

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Cap Rate (Capitalization Rate)

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Cash Flow

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CIM (Confidential Information Memorandum)

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Closing

D

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Due Diligence

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Discretionary Earnings

E

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Earn-Out

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EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization)

F–G

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FF&E (Furniture, Fixtures & Equipment)

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Goodwill

H–L

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Holdback

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Letter of Intent (LOI)

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Listing Agreement

M–N

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Multiple (Valuation Multiple)

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NDA (Non-Disclosure Agreement)

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NOI (Net Operating Income)

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Non-Compete Agreement

O–R

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Offering Memorandum (OM)

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Reps & Warranties (Representations and Warranties)

S

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SBA Loan (Small Business Administration Loan)

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SDE (Seller's Discretionary Earnings)

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Seller Financing (Seller Note / Carry-Back)

T–W

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Transition Period

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Triple Net Lease (NNN)

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Work-to-Own

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Have questions about buying or selling a business? We're here to help.

CRE & Business Glossary

Key Terms for Buying, Selling & Valuing a Business

A

B

C

D

E

F–G

H–L

M–N

O–R

S

T–W

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