Glossary · Reading the business
Wage
In short
Payment to employees, typically calculated hourly or by piecework, for work performed. Buyers care because wages are a variable operating expense tied to business activity, impacting profitability.
What it means in a deal
Wages are a key operational cost on the P&L. Unlike salaries, wages often fluctuate with sales volume or project load. Understand the business's historical wage expenses, especially if it relies heavily on hourly workers, to project future profitability. Be alert for under-the-table payments.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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