Business Finance Terms, Explained Simply.

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What is the Value Acceleration Methodology?

The Value Acceleration Methodology is the Exit Planning Institute’s structured framework for building business value deliberately over time, aligning the....

What is Transferable Value?

Transferable value is the portion of enterprise value that would survive if the owner stepped away, the share of what....

What is Transferability?

Transferability is the degree to which a business can operate, perform, and retain its value after ownership changes, independently of....

What is the Three Legs of the Stool?

The Three Legs of the Stool is the Exit Planning Institute’s framework for a successful exit, representing business readiness, financial....

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 is Revenue Diversification?

Revenue diversification is the distribution of a business’s income across multiple customers, products, services, and channels, reducing dependence on any....

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....

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....

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....