Enterprise Value (EV)
The total value of a business including equity and debt, minus cash. Used as the starting point for most business acquisitions because it reflects what a buyer actually pays to take control of the operating business, regardless of how it's financed.
Where This Matters
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Exit Planning
→Everything business owners need to know about selling, exiting, or transitioning out of their company — from valuation to tax strategy to deal structure.
Partner Disputes
When co-owners disagree — from buyout negotiation to mediation to dissolution. Practical guidance for resolving business conflicts without destroying the company.
Related Terms
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Seller's Discretionary Earnings (SDE)EBITDA MultipleQuality of Earnings (QoE)Add-BacksDue DiligenceLetter of Intent (LOI)Holdback (Escrow)Earn-OutAsset SaleStock Sale (Equity Sale)GoodwillPersonal GoodwillCommunity PropertySeparate PropertyPereira MethodVan Camp MethodTransmutationBuy-Sell AgreementShotgun Clause (Russian Roulette Clause)Right of First Refusal (ROFR)View all →