Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Fair Market Value (FMV)

Definition

The amount at which property would change hands between a willing seller and a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts.

See Also

Book value, fair value, market value.

Tips

Businesses do not always sell at fair market value. They may sometimes sell for much more or much less, depending on market conditions and the appeal of the business.

Related Resources

Business Valuation Standards of Value & Fair Market Value