Business Finance Terms, Explained Simply.

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What is Human Capital?

Human capital is one of the four intangible capitals in the Value Acceleration framework, measuring the quality, depth, and independence....

What is Growth Potential?

Growth potential is a buyer’s assessment of how credibly and sustainably a business can grow beyond its current performance, and....

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 Customer Retention?

Customer retention is the rate at which a business keeps its existing customers over time, one of the clearest indicators....

What is Customer Concentration Risk?

Customer concentration risk is when too much revenue depends on too few customers, a structural vulnerability that reduces enterprise value....

What is Customer Capital?

Customer capital is one of the four intangible capitals in the Value Acceleration framework, measuring the strength, diversity, and loyalty....

What is Competitive Differentiation?

Competitive differentiation is what makes a business the only logical choice for a specific type of customer, the combination of....

What is Business Valuation?

Business valuation is the process of determining what a business is worth, and for most incorporated Canadian owners, the answer....

What is Business Attractiveness?

Business attractiveness is how compelling a business looks to a buyer before they have examined the details, the combination of....

What is Wealth Preservation?

Wealth preservation is the discipline of protecting assets accumulated through a business exit from erosion by tax, poor investment decisions,....

What is the Wealth Gap?

The wealth gap is the difference between what a business and personal assets are worth today and the amount needed....