Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Social capital is one of the four intangible capitals in the Value Acceleration framework, measuring the strength of a business’s....
Scalability is the ability of a business to grow revenue without a proportional increase in costs or owner involvement, the....
Revenue diversification is the distribution of a business’s income across multiple customers, products, services, and channels, reducing dependence on any....
Recurring revenue is income that renews predictably, through subscriptions, retainers, maintenance agreements, or contracts, without requiring the business to re-earn....
A readiness score is a structured, quantified assessment of how prepared a business is for an ownership transition, across the....
The range of value is the spread between the floor and ceiling of what a business is realistically worth, reflecting....
The profit gap is the difference between what a business currently earns and what it would need to earn to....
The owner’s real number is the specific after-tax amount needed from a business exit to achieve financial independence, the personal....
Owner dependence is the degree to which a business’s performance, relationships, and operations rely on the owner personally, the single....
Management depth is the strength and capability of the leadership layer below the owner, the team that can run the....
Key person risk is the degree to which a business’s performance depends on one or two individuals, and the discount....
Intangible capital is the collective term for the four non-financial value drivers, human, structural, social, and customer capital, that determine....