PEBIT

Proprietors Earnings before Interest and Tax.  PEBIT is considered a reasonable representation of the Adjusted Earnings of a business available to one full time working owner after all Cost of Goods, Operating Expenses.   

PEBITDA

Proprietors Earnings before Interest, Tax, Depreciation and Amortisation. PEBITDA refers to PEBIT after all Depreciation and Amortisation are added back.  These are non-cash expenses or allowances for the reduction in the value of assets held.

EBIT

Earnings before Interest and Tax.  EBIT is considered a reasonable representation of the Adjusted Earnings of a business available to a business owner after all costs and operation expenses as well as reasonable commercial wages for the owners contribution to the business.

EBITDA

Earnings before Interest, Tax, Depreciation and Amortisation.  EBITDA refers to EBIT after all Depreciation and Amortisation are added back.  These are non-cash expenses or allowances for the reduction in the value of assets held.

Adjusted Earnings

Refers to the Reported Earnings of the business adjusted for any Add Backs and Deductions that are required to reflect the true earnings of the business.  These Adjustments can refer to a range of items.  Please refer to our article on Calculating Adjusted Earnings for more info.

Gross Profit

Calculated earnings figure once all cost of goods expenses are deducted from Sales Income. This is also often referred to as a Gross Profit Percentage which is calculated as Gross Profit divided by Sales income.

SAV

Stock at Value.  The Asking Price for many businesses is advertised as $price plus SAV which means the buyer is required to buy the stock held by the business at settlement based on its value.

WIWO

Walk In Walk Out.  Condition of sale which relates to a handover of business with no funds related to the transfer of stock. 

TOL

Take Over Leases. Refers to a contract condition that requires the Buyer of the business to take over existing Leases held by the Seller.