Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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A data room is the secure, organized repository of documents and information made available to buyers and their advisors during....
A confidentiality agreement, also called a non-disclosure agreement or NDA, is a binding contract that prevents a prospective buyer from....
Closing adjustments finalize the purchase price at completion based on the actual financial position delivered; post-closing adjustments settle any remaining....
Closing is the moment a transaction legally completes, when funds are transferred, documents are executed, and ownership of the business....
Clean financials are financial statements that are accurate, consistently prepared, free of personal or non-business expenses, and presented in a....
In an asset sale, the buyer purchases specific assets and liabilities of the business; in a share sale, they purchase....
The Value Acceleration Methodology is the Exit Planning Institute’s structured framework for building business value deliberately over time, aligning the....
Transferable value is the portion of enterprise value that would survive if the owner stepped away, the share of what....
Transferability is the degree to which a business can operate, perform, and retain its value after ownership changes, independently of....
The Three Legs of the Stool is the Exit Planning Institute’s framework for a successful exit, representing business readiness, financial....
Systems and process documentation is the written, organized record of how a business operates, the step-by-step processes, decision frameworks, and....
Structural capital is one of the four intangible capitals in the Value Acceleration framework, measuring the systems, processes, and institutional....