Acronyms

Here are the acronyms you will encounter as you read this book:

• ABA: American Bar Association
• APA: Asset purchase agreement
• B2B: Business-to-business
• B2C: Business-to-consumer
• CA: Confidentiality agreement
• CapEx: Capital expenditure
• CIM: Confidential information memorandum
• CPA: Certified public accountant
• CRM: Customer relationship management database system
• DBA: Doing business as
• DCF: Discounted cash flow
• DPA: Definitive purchase agreement
• EBITDA: Earnings before interest, taxes, depreciation, and amortization
• EEOC: Equal Employment Opportunity Commission
• ERISA: Employee Retirement Income Security Act
• ESOP: Employee stock ownership plan
• FIFO: First in, first out
• FBNS: Fictitious business name statement
• FMV: Fair market value
• FOMO: Fear of missing out
• GAAP: Generally accepted accounting principles
• IOI: Indications of interest
• IP: Intellectual property
• IRR: Internal rate of return
• LIFO: Last in, first out
• LOI: Letter of intent
• LTM: Last twelve months
• LTV: Lifetime value
• MAC: Material adverse change
• MAE: Material adverse effect
• MBO: Management buyout
• MIRR: Modified internal rate of return
• MOIC: Multiple of invested capital
• NDA: Non-disclosure agreement
• NWC: Net working capital
• P&L: Profit and loss statement
• PE: Private equity
• PEG: Private equity group
• ROI: Return on investment
• ROIC: Return on invested capital
• SPA: Stock purchase agreement
• TTM: Trailing twelve months
• UCC: Uniform Commercial Code
• VC: Venture capitalist
• WIP: Work in progress
• YTD: Year-to-date

For a full definition, check out the Glossary in the Resources section.