Business Valuation Glossary

Transaction Costs

Definition

The sum total of all costs associated with a business purchase transaction.

What It Means

The typical costs incurred in buying a small business include:

  • Closing costs.
  • Professional fees such as those charged by the CPA and attorney.
  • Lender fees.
  • Business appraisal fees.
  • Business license fees.
  • Due diligence costs.

See Also