Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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A strategic buyer acquires a business for what it adds to their existing operation; a financial buyer acquires it as....
Sell-side readiness is the state of being genuinely prepared to run a sale process, with the financial, legal, operational, and....
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....
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....
Succession options are the specific paths available for transferring ownership of a business, to family, management, employees, or a third-party....
A shareholders agreement is a binding contract between the owners of a private corporation that governs their rights, obligations, and....
Sensitivity analysis tests how financial outcomes change when a single assumption is varied, isolating the variables that have the most....
Scenario planning models how a business performs under different sets of assumptions, giving a financial view of multiple possible futures....
Subordinated debt sits behind senior debt in the repayment hierarchy, meaning in a default or insolvency, senior lenders are repaid....
Solvency is the ability of a business to meet its financial obligations as they fall due, the threshold between a....