A non-disclosure agreement (NDA) is a signed formal agreement between two parties. It states that one party, the Seller (that’s you if you’re selling your business), agrees to give a second party, the potential Buyer, confidential information about its business or products and the second party agrees not to share this information with anyone else for a specified period of time.
When selling businesses this is crucial to have before you commence serious discussions with any party and normally a NDA is signed after the potential buyer had read the sales teaser letter and expressed further interest.
We’ve got an example of a NDA on our Free Document Samples page.
Net profit represents the number of sales dollars/sterling/yen/euros etc.. remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.
Revenue is the total amount of money a company earns or makes through its operations and other sources. It is different from profit (which is arrived after subtracting expenses) and cash flow (which is cash generated and used by the business).
Search engine optimisation (SEO) is the process of affecting the visibility of a website or a web page in a search engine’s “natural” or un-paid (“organic”) search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine’s users. SEO may target different kinds of search, including image search,local search, video search, academic search, news search and industry-specific vertical search engines.
A service-level agreement (SLA) is a contract between a supplier and a customer that specifies, usually in measurable terms, what services the supplier will provide and what the escalation procedures are should issues/defects not be resolved in their stated response times and fixes.
The sale and purchase agreement (SPA) is the official legal document which is prepared by your solicitors in order to complete the sale. The agreement will easily run to over 100 pages and be full of legalese.
Transaction is just another word used to represent the deal. Popularised by the bean counters.
TUPE is an acronym for the Transfer of Undertakings (Protection of Employment) Regulations.
This is part of UK law.
The purpose of TUPE is to protect employees if the business in which they are employed changes hands. Its effect is to move employees and any liabilities associated with them from the old employer to the new employer by operation of law.
Working capital is a company’s available funds for its day-to-day operations which at a minimum must be one month.
Working capital = current assets – current liabilities
A company’s working capital is affected and assessed by its cash position, inventory, sales, accounts receivable, accounts payable, short-term debt due, inventory management, debt management, revenue collection, and payments to suppliers.
A write-off has no value anymore.
Here’s the technical definition for a write-off:
A write-off is a reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business or have been incurred in the operation of the business and detract from retained revenues.
