Every term you’ll hear — explained like a person, not a textbook.

When you grow or sell a business, people throw a lot of jargon at you — and some of them count on you not knowing it. Here’s what it all means, and why it matters to you.

Money & value

How a business gets priced — and where owners quietly leave money on the table.

EBITDA

Earnings before interest, taxes, depreciation, and amortization — the cash your business throws off before financing and accounting adjustments.

Why it matters to youYour business is usually worth a multiple of this number. Grow it, and everything else moves with it.

Add-backs

One-time or personal costs added back to your earnings to show what the business really makes.

Why it matters to youDone right and documented, legitimate add-backs raise your EBITDA — and your price.

Multiple

The number your EBITDA is multiplied by to set the price. $2M at 5× is about $10M.

Why it matters to youSmall changes in the multiple are big dollars. Much of my job is moving it up.

Quality of EarningsQoE

A deep, independent audit of your real, repeatable earnings a serious buyer orders before closing.

Why it matters to youSurprises here kill deals or cut your price. Getting ahead of it protects both.

Working capital peg

The “normal” level of working capital you’re expected to leave in the business at closing.

Why it matters to youNegotiated carelessly, this quietly hands the buyer money that should be yours.

Ways to structure a deal

You have more options than “sell all of it.”

Recapitalizationrecap

Selling part of your business for cash today while keeping a piece of it.

Why it matters to youThis is “chips off the table” — get liquid without giving up the future upside.

Rollover equity

The stake you keep — “roll” — into the newly owned business instead of cashing out.

Why it matters to youIt’s how you set up a second payday on the same company.

Second bite of the apple

Selling that rolled-over stake later, after the business has grown and is worth more.

Why it matters to youThe second bite is often bigger than the first check.

Earnout

Part of your price paid later, tied to the business hitting agreed targets.

Why it matters to youIt can bridge a price gap — but the terms decide whether you see the money.

Personal guarantee

When you’ve personally signed to back the company’s debt or leases.

Why it matters to youGetting released is a real weight off your shoulders — and something I work to do.

Who’s who

The people who might buy or advise on your business — and what they’re really after.

Independent sponsor

An operator — like me — who finds and leads a deal personally, raising capital one deal at a time.

Why it matters to youMore hands-on and aligned than a fund. I’m in your specific deal, not managing a hundred others.

Private equityPE

A fund that buys companies to grow and resell, usually on a three-to-five-year clock.

Business broker

Lists and markets your business for sale, usually smaller deals; paid at close.

Why it matters to youThey get paid the day you close, then they’re gone. The opposite of how I work.

Strategic buyer

A competitor or larger company already in your industry.

Why it matters to youOften pays the most — but may cut your team and fold in your name.

Let’s talk

Not sure where you fit in all this?

That’s what a first call is for. Tell me your situation and I’ll walk you through your real options — no jargon, no pressure.

Book a 30-minute call Read the answers first

— William