M&A GLOSSARY
EV
Enterprise Value
The value of a business's operations, commonly incorporating equity value and net debt.
What does EV mean?
The value of a business's operations, commonly incorporating equity value and net debt. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
EV in context
A buyer considers the target's equity value plus debt less cash to estimate EV.
Why it matters in financing
EV can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related m&a terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.