Untitled Document

Our Affiliations • Internet Resources • Glossary of Terms

[A] [B] [C] [D] [E] [F] [G-H] [I-K] [L] [M]
[N-O] [P] [Q-R] [S] [T] [U-V] [W-Z]

-P-

Partnership
A form of ownership in which two or more partners are involved. Like the sole proprietorship, a partnership arrangement carries unlimited liability for the owners. However, there is only single taxation for the partners, an advantage over the corporate form of ownership.

Payback
A value that indicates the time period required to recoup an initial investment. The payback does not include the time-value-of-money concept.

Pledging Receivables
Using accounts receivable as collateral for a loan. The firm usually may borrow 60 to 80 percent of the value of acceptable collateral.

Pooling of Interests
A method of financial recording for mergers, in which the financial statements of the firms are combined, subject to minor adjustments, and goodwill is not created.

Post-Closing
Conditions or events that are activated after a transaction is finalized.

Price/Book Ratio (P/B Ratio)
A stock analysis statistic in which the price of a stock is divided by the reported book value (as of the date specified) of the issuing firm.

Price Cash Flow Ratio (PIC Ratio)
A financial ratio that compares stock price with cash flow from operations per outstanding shares.

Price/Earnings Ratio (P/E Ratio)
A stock analysis statistic in which the current price of a stock (today's last sale price) is divided by the reported actual (or sometimes projected, which would be forecast) earnings per share of the issuing firm; it is also called the "multiple".

Price/Sales Ratio (PIS Ratio)
A financial ratio that compares stock price with sales per share (or market value with total revenue).

Pricing Assessments
A financial review that focuses on the pricing of a privately held business in anticipation of a transaction .

Prime Rate
The rate that a bank charges its most creditworthy customers.

Principal Orders
Refers to activity by a broker/dealer when buying or selling for its own account and risk.

Private Equity Group (PEG)
Invests funds collected from various private sources as equity in privately held companies with the objective of exceeding by 3 times the prime rate.

Privately-Held
Businesses whose ownership is held by up to 35 private individuals or shareholders. The stock of the company has not been offered for public sale under the rules and guidelines of the S.E.C.

Professional Intermediary
Experienced equity transfer professional who knows how to value, market, and close sale of a privately held business.

Profitability Ratios
A group of ratios that indicates the return on sales, total assets, and invested capital. Specifically, we compute the profit margin (net income to sales), return on assets, and return on equity.

Pro Forma Balance Sheet
A projection of future asset, liability, and stockholders' equity levels. Notes payable or cash is used as a plug or balancing figure for the statement.

Pro Forma Financial Statements
A series of projected financial statements. Of major importance are the pro forma income statement, the pro forma balance sheet, and the cash budget.

Pro Forma Income Statement
A projection of anticipated sales, expenses, and income.

Proprietary
Belonging to ownership; belonging or pertaining to a proprietor; relating to a certain owner or proprietor. Made or marked by a person or persons having the exclusive right to manufacture and sell such.

Proprietary Overrides
Defining business conditions that buyers want or do not want in their business or acquisition candidates, i.e. no unions, no government contracts, no raw materials management, etc.

Public Limited Company (PLC)
British designation or equivalent to a U.S. public company.

Public Warehousing
An inventory financing arrangement in which inventory, used as collateral, is stored with and controlled by an independent warehousing company.

Publicly Traded
Company went public to offer ownership shares for trade on the public exchanges - NYSE, AMEX, NASDAQ.

Purchase of Assets
A method of financial recording for mergers, in which the difference between the purchase price and the adjusted book value is recognized as goodwill and amortized over a maximum time period of 40 years.

Pure Play
An acquired company that is in only one business.

Top of Page

[A] [B] [C] [D] [E] [F] [G-H] [I-K] [L] [M]
[N-O] [P] [Q-R] [S] [T] [U-V] [W-Z]

Our Affiliations • Internet Resources • Glossary of Terms