What are Representations and Warranties?
Representations and warranties are the seller’s formal statements in a purchase and sale agreement about the accuracy and completeness of everything material […]
What is the Difference Between the Real Number and the Tax Number?
The real number is what a business actually earns under normal operating conditions; the tax number is the lower figure reported to […]
What is Revenue Diversification?
Revenue diversification is the distribution of a business’s income across multiple customers, products, services, and channels, reducing dependence on any single source […]
What is Recurring Revenue?
Recurring revenue is income that renews predictably, through subscriptions, retainers, maintenance agreements, or contracts, without requiring the business to re-earn it from […]
What is a Readiness Score?
A readiness score is a structured, quantified assessment of how prepared a business is for an ownership transition, across the business, financial, […]
What is the Range of Value?
The range of value is the spread between the floor and ceiling of what a business is realistically worth, reflecting the fact […]
What is Risk Tolerance?
Risk tolerance in an exit planning context is the degree to which a business owner is willing to accept uncertainty, in deal […]
What is Retirement Planning for Business Owners?
Retirement planning for business owners is the process of building the personal financial resources needed to sustain the owner’s lifestyle after they […]
What is Runway?
Runway is how long a business can continue operating at its current burn rate before its cash is exhausted, measured in months […]
What is a Rolling 13-Week Cash Flow Forecast?
A rolling 13-week cash flow forecast projects cash receipts and payments week by week over the next quarter, updated continuously so management […]
What is Refinancing?
Refinancing is replacing an existing loan with a new one, typically to access better terms, extend the repayment period, consolidate debt, or […]
What is Revenue Recognition?
Revenue recognition is the accounting principle that determines when a sale is officially recorded, not when the invoice is sent or the […]