Definitions

DEFINITIONS

SIC

Small Business Industry Classification Number

NAISC

North American Industry Standard Code

BUS TYPE

Best Description of Subject Business

ASK PRICE

Asking Price (000’s) (Does not include inventory)

ANN GROSS

Annual Gross Sales (Normally Net of State Sales Tax)

SDE

Seller’s Discretionary Earnings (Net Profit Before
Taxes AND ANY COMPENSATION TO OWNER plus
Amortization, Depreciation, Interest, Other Non-cash
Expense and Non-Business Related Expense).
(SDE Assumes One Working Owner)

SDE/GROSS SALES

Seller’s Discretionary Earnings Divided by Gross Sales

SALE DATE

Actual Date of Sale

SALE PRICE

Actual Sale Price (in 000’s)
(Inverntory has been deducted if it was in Sale Price)

% DOWN

Down Payment as a Percent of Sale Price

TERMS

Terms of New or Assumed Encumbrance

SALE/SALES

Sale Price Divided by Gross Sales

SALE/SDE

Sale Price Divided by Seller’s Discretionary Earnings

INV

Inventory At The Time of Sale. (in 000’s)
(Inventory is not included in Sale Price)

RENT/SALES

Rent as a Percent of Sales

DAYS ON MKT

Actual Number of Days Business Was on Market

FRANCHISE ROYALTY

Actual Royalty Less Advertising Percentage

FF&E

Estimate of Value of Furniture, Fixtures & Equipment

AREA

Region of Geographical Location of Business