Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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The Value Acceleration Methodology is the Exit Planning Institute’s structured framework for building business value deliberately over time, aligning the....
Transferable value is the portion of enterprise value that would survive if the owner stepped away, the share of what....
Transferability is the degree to which a business can operate, perform, and retain its value after ownership changes, independently of....
The Three Legs of the Stool is the Exit Planning Institute’s framework for a successful exit, representing business readiness, financial....
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....
Revenue diversification is the distribution of a business’s income across multiple customers, products, services, and channels, reducing dependence on any....
Recurring revenue is income that renews predictably, through subscriptions, retainers, maintenance agreements, or contracts, without requiring the business to re-earn....
A readiness score is a structured, quantified assessment of how prepared a business is for an ownership transition, across the....
The range of value is the spread between the floor and ceiling of what a business is realistically worth, reflecting....