Since most smaller acquisitions are Assets Sales (not Stock Purchases) Enterprise Value is better / simpler / less complex and more generally accepted. Typically based on a industry multiple of SDE or EBITDA.

As a high level explanation from a finance perspective, if you're deriving a purchase price based on a multiple that applies to stakeholders across the capital structure (revenue, EBITDA), then you're talking about enterprise value (EV). If calculating based on a metric that only applies to equity holders (levered FCF), then you're talking equity value (EqV). Folks focus on EV, and at this end of the market, are generally structuring offers based on buying the business on a cash free, debt free basis (i.e. the seller is responsible for paying down any debt on the business and takes all cash with them). If the business has transferrable debt at favorable terms that you'd like to assume post-close, then you can structure your LOI to note this.