What is Purchase Price Allocation?
Purchase price allocation is the process of assigning the total transaction price across the specific assets and liabilities acquired, a requirement in […]
What is a Purchase and Sale Agreement (PSA)?
A purchase and sale agreement is the definitive legal contract that governs a business transaction, setting out every binding term, condition, representation, […]
What is Pre-Sale Due Diligence?
Pre-sale due diligence is the process of reviewing a business before a buyer does, to identify and resolve the issues that would […]
What is the Profit Gap?
The profit gap is the difference between what a business currently earns and what it would need to earn to achieve the […]
What is Post-Exit Planning?
Post-exit planning is the preparation for life after the business, covering personal financial management, wealth deployment, identity, purpose, and legacy in the […]
What is Phantom Equity?
Phantom equity is a compensation arrangement that gives key employees the economic benefit of ownership, a share of business value growth or […]
What is a Personal Financial Plan?
A personal financial plan is the comprehensive blueprint for how wealth, including business exit proceeds, will be invested, managed, and distributed to […]
What is Profitability Improvement?
Profitability improvement is the deliberate process of increasing the percentage of revenue that converts to profit, through pricing discipline, cost management, revenue […]
What is the Personal Property Security Act (PPSA)?
The PPSA is provincial legislation that governs how security interests in personal property, equipment, receivables, and inventory are created, registered, and enforced […]
What is a Personal Guarantee?
A personal guarantee is a commitment by a business owner to repay a corporate debt personally if the business cannot, making the […]
What is a Prescribed Rate Loan?
A prescribed rate loan is a loan from a higher-income spouse or family member to a lower-income one at the CRA’s published […]
What is a Personal Services Business?
A personal services business is a corporation the CRA treats as a disguised employment relationship, typically an incorporated contractor providing services to […]