We present a theory of the elementary spin excitations in transition metal ferromagnet nanoparticles which achieves a unified and consistent quantum description of both collective and quasiparticle physics. The theory starts by recognizing the essential role played by spin-orbit interactions in determining the energies of ferromagnetic resonances in the collective excitation spectrum and the strength of their coupling to low-energy particle-hole excitations. We argue that a crossover between Landau-damped ferromagnetic resonance and pure-state collective magnetic excitations occurs as the number of atoms in typical transition metal ferromagnet nanoparticles drops below approximately $10^4$, approximately where the single-particle level spacing, $\delta$, becomes larger than, $\sqrt{\alpha} E_{\rm res}$, where $E_{\rm res}$ is the ferromagnetic resonance frequency and $\alpha$ is the Gilbert damping parameter. We illustrate our ideas by studying the properties of semi-realistic model Hamiltonians, which we solve numerically for nanoparticles containing several hundred atoms. For small nanoparticles, we find one isolated ferromagnetic resonance collective mode below the lowest particle-hole excitation energy, at $E_{\rm res} \approx 0.1$ meV. The spectral weight of this pure excitation nearly exhausts the transverse dynamical susceptibility spectral weight. As $\delta$ approaches $\sqrt{\alpha} E_{\rm res}$, the ferromagnetic collective excitation is more likely to couple strongly with discrete particle-hole excitations. In this regime the distinction between the two types of excitations blurs. We discuss the significance of this picture for the interpretation of recent single-electron tunneling experiments.