The Freedom of Information Act gives you the right to ask any public sector organisation for all the recorded information they have on any subject.
Anyone can make a request for information – there are no restrictions on your age, nationality or where you live.
If you ask for information about yourself, then your request will be handled under the Data Protection Act.
For more information on how to make a Freedom of Information request (FOI) visit The Gov.Uk website.
Gluttony (Latin: gula), derived from the Latin gluttire meaning to gulp down or swallow, means over-indulgence and over-consumption of food, drink, or wealth items to the point of extravagance or waste.
We couldn’t resist putting this one in our glossary as that’s what we coined the term ‘deal fever‘ on. It happens during the sell process, people get greedy. It’s human nature. Just be aware of it as it happens and control it!
The memorandum of information (IM) which is also known as an MOI, is a selling document and should be no more than 20 pages. It showcases your business in detail and will be written by your Corporate financial advisor (as part of their engagement and fee) after they have spent hours interviewing you and anyone else in your business who is ‘in’ on the sale and before going out to market. This document needs to be reviewed by your success team members for accuracy.
A company’s inventory is the stock of raw materials, finished products for sale, and products currently being produced for sale. Inventory categories can be individually valued in various ways:
Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
KPI = Key Performance Indicator
KPIs are methods by which an organisation measures and assesses its business outcomes in terms of defined goals and objectives. The particular goals are periodically assessed and reviewed to determine if they are being met and what actions to take further. Key performance indicators can be used in all areas of business.
Liabilities are an entity’s legal responsibilities to settle a debt, pay taxes, damages or fulfil other obligations. The fewer liabilities a company has the more it is likely to attract higher valuation and purchase price.
A loan note is a contract document issued by a lender (could be a private individual, such as yourself representing an individual loaning to the business) to a borrower (which make be the company) regarding money borrowed by the borrower.
The loan note will specify details of the loan and the terms and conditions; the principal, interest rate, the payment schedule, the rights and obligations of both the lender and the borrower.
The memorandum of information (MOI) which is also known as an IM, is a selling document and should be no more than 20 pages. It showcases your business in detail and will be written by your Corporate financial advisor (as part of their engagement and fee) after they have spent hours interviewing you and anyone else in your business who is ‘in’ on the sale and before going out to market. This document needs to be reviewed by your success team members for accuracy.
This is extremely important for a seller as its how your business is valued by a potential buyer!
Traditionally a company’s earnings is multiplied a number of times to determine its value. It’s represented as 3x, 4x, 8x, 12x.
When using adjusted net profit as the multiplier method, it is:
Adjusted Net Profit x Multiple (of industry) = Valuation
The multiples of earnings approach is usually the preferred method of valuation of a lot of SMEs. However, it could be based on number of end users and a cost of acquisition for each. eg. 2 million customers x £20 = £40m !
When valuing such businesses, multiples could be applied to adjusted net profit, earnings before interest and taxes (EBIT / EBITDA) to determine sale price. However, in lieu of adjusted net profit, a multiple can be applied to cash flow or even gross margin.
It all depends on how the buyer values your business.
