DETECTURE Select One Claims by creditors against a company's assets. Select One Product liability lawsuit A business valuation method that involves estimating a Discounted future earnings approach company's net income for several years into the future and Capitalized earnings approach then discounts these future earnings back to their present Excess earnings method Non-disclosure agreement (NDA) value, which provides an estimate of the company's worth. Due diligence A lawsuit which claims that a company is liable for damages Covenant not to compete (or restrictive covenant) Goodwill and injuries caused by the products or services it sells. Due-on-sale clause Llens The difference between an established, successful business and one that has yet to prove itself that is based on the company's reputation and its ability to attract and retain customers. A business valuation method that involves dividing a company's estimated net earnings (after subtracting a reasonable salary for the owner) by the rate of return that reflects the risk level of investing in the business, A clause that requires the buyer to pay the full amount of the Select One remaining loan balance or to finance the balance at prevailing interest rates, thus preventing the buyer from assuming the seller's loan at a lower interest rate. An agreement tied to the sale of a business in which the seller Select One agrees not to open a competing business within a specific time period and geographic area of the existing one. A legal contract that requires a prospective buyer to maintain Select One the confidentiality of the business, its owner, and any information, financial and otherwise, that the buyer sees as part of the due diligence process o