RISR Glossary of Insights

Definitions and explanations of key business planning concepts in the RISR platform

Business Valuation

Aligning business goals with financial plans

The business performance needed to reach goal valuation

Business Valuation

Average historic EBITDA

A weighted average of historic EBITDA used to estimate business value

Business Valuation

Business Risk

Reflects the likelihood of a disruption to business operations or earnings in the future

Business Valuation

Current business valuation

An estimate of what all the equity in a client's business is worth

Business Valuation

Goal Valuation & Liquidity

The valuation a business needs to achieve to fund the owner's life goals.

Business Valuation

Income Approach to Valuation

Estimating business valuation based on future earning potential.

Business Valuation

Industry Selection & Valuation Multiples

Used to identify multiples when estimating valuation

Business Valuation

Interest-bearing Debt

Borrowed money that a company must repay with interest

Business Valuation

Market Approach to Valuation

Estimating business valuation based on comparable business benchmarks.

Business Valuation

Net working capital

A measure of how much short-term liquidity is available to run the business day-to-day

Business Valuation

Normalized EBITDA

EBITDA adjusted to remove unusual, non-recurring, or discretionary expenses to better estimate a business's value

Risk Management

Risk to equity owned

Risk to a client's equity value in the event of death, disability, or dispute

Succession & Exit

Succession & Exit Planning Guide

An overview of succession & exit planning for financial advisors

Business Valuation

Value of equity owned

An estimate of what the client's share of ownership in their business is worth