Acronyms

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

• AMA: American Bar Association
• APA: Asset purchase agreement
• CA: Confidentiality agreement
• CDC: Centers for Disease Control and Prevention
• CIM: Confidential information memorandum
• COGS: Cost of goods sold
• CPA: Certified public accountant
• DBA: Doing business as
• DCF: Discounted cash flow
• DCR: Debt coverage ratio
• EBITDA: Earnings before interest, taxes, depreciation, and amortization
• ERISA: Employee Retirement Income Security Act
• ESOP: Employee stock ownership plan
• FBNS: Fictitious business name statement
• FMV: Fair market value
• FOMO: Fear of missing out
• GAAP: Generally accepted accounting principles
• GP: General program
• IP: Intellectual property
• IRR: Internal rate of return
• LLC: Limited liability company
• LOI: Letter of intent
• M&A: Mergers and acquisitions
• MAC: Material adverse change
• MVP: Minimum viable products
• NDA: Non-disclosure agreement
• P&L: Profit and loss statement
• PE: Private equity
• PEG: Private equity group
• PLP: Preferred lending program
• R&D: Research and development
• R&W: Representations and warranties
• RVD: Return on value drivers
• SBA: Small Business Administration
• SDE: Seller’s discretionary earnings
• SPA: Stock purchase agreement
• TTM: Trailing twelve months
• UCC: Uniform Commercial Code
• YTD: Year-to-date

For full definitions, check out the Glossary in the Resources section.