{
  "title": "What is enterprise value? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-enterprise-value/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-25",
  "updated": "2026-10-25",
  "section": "Glossary",
  "keyword": "Enterprise value",
  "short_answer": "Enterprise value is the price of the whole business, before you count its debt and cash. It equals equity value plus debt minus cash. In a small-business sale, the headline price is usually the enterprise value, and the seller pays off debt from it.",
  "facts": {
    "EBITDA": [
      "$800,000",
      "$800,000"
    ],
    "Multiple": [
      "4.5x",
      "4.5x"
    ],
    "Enterprise value (headline price)": [
      "$3,600,000",
      "$3,600,000"
    ],
    "Less: bank loan and equipment loans": [
      "$0",
      "($900,000)"
    ],
    "Plus: cash left in the business": [
      "$200,000",
      "$0"
    ],
    "Equity value (seller's proceeds before tax and fees)": [
      "$3,800,000",
      "$2,700,000"
    ]
  },
  "sources": [
    "https://en.wikipedia.org/wiki/Enterprise_value",
    "https://www.wallstreetprep.com/knowledge/enterprise-value/",
    "https://www.wallstreetprep.com/knowledge/cash-free-debt-free-why-its-used-and-impact-on-enterprise-valuation/"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}