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What does “financial terms” mean?

Above all else, buyers will want to know a company’s high level financial performance prior to moving forward with a potential acquisition. Here is a list of financial metrics you can add to your listing. 

  • Revenue: Your company’s revenue is the total amount of income it has generated from the sale of its goods and services before deducting any expenses. 
  • Gross Profit: Gross Profit is the amount remaining after deducting the cost of goods sold. In other words, it is your profit minus the cost of making the products that you have sold. 
  • Expenses: Expenses refer to the cost the company incurs to continue running its operations and generate revenue. This can include employee salaries, depreciation expenses, lease payments, marketing campaigns, etc. 
  • Net Income: Also referred to as net earnings, a company’s net income is calculated as the following: Net income = Revenue - expenses - interest - taxes. 
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