1.5 min read. As a business owner, it’s crucial to understand the valuation process and the terminology used in it. Knowing these terms can help you prepare for a business sale, merger, or acquisition, or when creating a buy-sell agreement or doing estate planning. In this blog post, we’ll cover five essential valuation terms that every business owner should know. 1. Fair market value: This term refers to the price at which a hypothetical willing and able buyer and seller would agree to exchange property in an open and unrestricted market. Fair market value applies not only to physical assets […]
valuation terms
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