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Business Valuation Glossary

179 essential terms every small business owner should know — organized across 13 categories.

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Core concepts behind how businesses are valued and what determines worth.

Business Valuation Fundamentals

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Key income metrics used to assess what a business actually generates.

Earnings & Profitability

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Expenses added back to earnings to reflect true owner benefit.

Add-Backs & Adjustments

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How expenses are categorized and what they reveal about the business.

Cost Structure

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The approaches used to calculate what a business is worth.

Valuation Methods

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The mechanics of how business deals are structured and closed.

Deal Structure & Transactions

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Loan types and financing terms relevant to business transactions.

Financing & SBA

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Factors that increase or decrease what a buyer will pay.

Risk & Value Drivers

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How market conditions and industry data shape valuation.

Industry & Market

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Concepts around transferring, structuring, or exiting a business.

Exit Planning & Ownership

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The documents and accounting methods behind business financials.

Financial Statements & Reporting

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Legal entity types and ownership structures that affect valuation.

Business Structure & Legal

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The professionals involved in valuation, transactions, and business sales.

Brokers & Advisors

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