Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is Management Continuity?

Management continuity is the assurance a buyer seeks that the key people running the business will remain in their roles....

What is Management Depth?

Management depth is the strength and capability of the leadership layer below the owner, the team that can run the....

What is a Management Buyout (MBO)?

A management buyout is a transaction in which the existing management team purchases the business from its current owner, typically....

What is Multi-Entity Accounting?

Multi-entity accounting is the management of financial records across multiple related corporations, ensuring each entity’s books are accurate, intercompany transactions....

What is a Margin Profile?

A margin profile is the full picture of profitability across different dimensions of a business, by product, service line, customer,....

What is Margin Expansion?

Margin expansion is the improvement in profitability as a percentage of revenue over time, achieved through pricing power, operational efficiency,....

What are Management Accounts?

Management accounts are regular internal financial reports prepared for the business owner and leadership team, designed to support decisions rather....

What is Mezzanine Financing?

Mezzanine financing sits between senior debt and equity in a company’s capital structure, offering more capital than a bank will....

What is Month-End Close?

Month-end close is the process of finalizing all financial records after each period ends: posting transactions, reconciling accounts, recording accruals,....

What is the difference between Markup and Margin?

Markup is the percentage added to cost to set a price; margin is the percentage of that price that is....