Business Finance Terms, Explained Simply.

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What is the Difference Between a Strategic Buyer and a Financial Buyer?

A strategic buyer acquires a business for what it adds to their existing operation; a financial buyer acquires it as....

What is Sell-Side Readiness?

Sell-side readiness is the state of being genuinely prepared to run a sale process, with the financial, legal, operational, and....

What is Systems and Process Documentation?

Systems and process documentation is the written, organized record of how a business operates, the step-by-step processes, decision frameworks, and....

What is Structural Capital?

Structural capital is one of the four intangible capitals in the Value Acceleration framework, measuring the systems, processes, and institutional....

What is Social Capital?

Social capital is one of the four intangible capitals in the Value Acceleration framework, measuring the strength of a business’s....

What is Scalability?

Scalability is the ability of a business to grow revenue without a proportional increase in costs or owner involvement, the....

What are Succession Options?

Succession options are the specific paths available for transferring ownership of a business, to family, management, employees, or a third-party....

What is a Shareholders Agreement?

A shareholders agreement is a binding contract between the owners of a private corporation that governs their rights, obligations, and....

What is Sensitivity Analysis?

Sensitivity analysis tests how financial outcomes change when a single assumption is varied, isolating the variables that have the most....

What is Scenario Planning?

Scenario planning models how a business performs under different sets of assumptions, giving a financial view of multiple possible futures....

What is Subordinated Debt?

Subordinated debt sits behind senior debt in the repayment hierarchy, meaning in a default or insolvency, senior lenders are repaid....

What is Solvency?

Solvency is the ability of a business to meet its financial obligations as they fall due, the threshold between a....