Working Capital When a business is sold, Working Capital (Cash, Accounts Receivable Inventory, and Accounts Payable) are usually included in the sale for businesses with a value over $1 million and not included for businesses worth less than $1 Million. When it is included, a “normal” amount of Working Capital is included, but the term [...]
A common sentiment among the business owners I meet is “my business drives me”. What I mean by that is who or what is really in charge of your business? Are you in charge of your business or does your business drive you? This is particularly true for a business owner who started the [...]
I came across this great article on Divestopedia about the pros and cons of having your accountant value your business. This is too good to not share. https://www.divestopedia.com/should-my-accountant-do-my-business-valuation/2/8199 There is value to having an independent 3rd party who has sold businesses value your business.
TYPES OF BUYERS As a Seller of a business it is important to know the types of buyers you will encounter in the sales process. Selling a business successfully requires the help of a M&A advisor who “knows the ropes” and has dealt with each type of buyer. Financial – Financial buyers like to base their [...]
What are some top value drivers for a business? Here is a list to consider that will help increase the value of your business. Financial Performance When a financial buyer is contemplating a purchase, the number one metric they use to measure value is financial performance. It is important that the financial information being presented [...]
One important thing for Buyers looking to value a business is for them to recalculate EBITDA and SDE if there are multiple owners of the business. It is easy for a non-seasoned business valuations expert to overlook the true SDE and EBITDA when there are multiple owners of a business. For example, see the Line [...]
Here are 3 ways for you to maximize the value of your business using multiple arbitrage. 1. Make an investment in your books. It is common among business owners to view the cost of financial reporting (keeping the books and accounting) as an expense. It is seen as a “necessary evil”. The cost of the [...]
MyBizValue is pleased to announce the availability of a revolutionary business valuation report. This important report is now available to business owners in the US. MyBizValue, the premier business valuation company, is now offering CPA-prepared business valuations from $499-$999. These valuation reports capitalize on the latest technological advances to prepare custom Business Valuation reports for [...]