Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is an Exclusivity Clause?

An exclusivity clause is a provision in a letter of intent that prevents the seller from soliciting or entertaining offers....

What is Equity Rollover?

An equity rollover is an arrangement where the selling owner reinvests a portion of the sale proceeds into the acquiring....

What is an Earnout?

An earnout is a deal structure where a portion of the purchase price is contingent on the business achieving defined....

What is Enterprise Value?

Enterprise value is the total value of a business as a going concern, what a buyer pays for the entire....

What is an EBITDA Multiple?

An EBITDA multiple is the number by which a buyer multiplies normalized EBITDA to arrive at enterprise value, the single....

What is an Exit Timeline?

An exit timeline is the planned schedule for completing an ownership transition, the horizon that determines how much time is....

What is an Exit Strategy?

An exit strategy is the specific plan for how, when, to whom, and under what terms ownership of a business....

What is Exit Readiness?

Exit readiness is an assessment of how prepared a business is to successfully complete an ownership transition, across the business,....

What is Exit Planning?

Exit planning is the process of deliberately preparing a business, its finances, and its owner for an ownership transition, so....

What are Exit Options?

Exit options are the range of paths available to a business owner to transition ownership, each with different financial outcomes,....

What is an Employee Share Ownership Plan (ESOP)?

An ESOP is a structured program that transfers ownership of a business to its employees, providing the owner with an....

What is Equipment Financing?

Equipment financing is a loan or lease structure specifically designed to fund the acquisition of business equipment, with the equipment....