Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Owner’s Salary

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Category: Business Valuation

Definition:

Owner salary in the context of business valuation refers to the compensation that the business owner receives for their work and services within the company. This salary is considered an operating expense and is an important factor in determining the financial performance and profitability of the business. Understanding and accurately assessing the owner’s salary is crucial for determining the fair market value of the business. It is one of the factors that valuation experts consider when making adjustments to financial statements and applying valuation methodologies to arrive at a comprehensive and accurate business valuation.