/Business Valuation Expert Tips and Information

Valuation Considerations for Orthodontics Practices

When valuing an Orthodontics Practice, two important considerations need to be made: Accounts Receivable. Accrual versus Cash Basis Accounting. When valuing an Orthodontics practice, especially if it is a startup and less than 2 years old it is important to consider Accounts Receivable in the valuation equation.  For instance, when valuing an orthodontics practice, they [...]

By | 2018-01-23T16:31:45-07:00 January 23rd, 2018|Business Valuation Expert Tips and Information|0 Comments

Beware: A Self-input Business Valuation is not a good idea

There is a type of business valuation software and service available that allows a business owner to input their own financial information.  Although this may seem like a good idea, it is a very bad practice.  Valuations, like tax returns are complicated and require a seasoned professional to analyze and input the data to get [...]

By | 2018-01-17T22:50:55-07:00 January 17th, 2018|Business Valuation Expert Tips and Information|0 Comments

Adjusted EBITDA or EBITDA? – Part 3 of 3

Now that you can calculate EBITDA correctly it is time to drill down into the difference between Adjusted EBITDA and EBITDA.  Before we review this important distinction, I think it is important to explain the reason for using another benchmark for valuation. If you classify businesses as small, medium or large, breaking them up into [...]

By | 2017-12-18T23:06:07-07:00 December 18th, 2017|Business Valuation Expert Tips and Information|3 Comments

Adjusted EBITDA or EBITDA? – Part 2 of 3

Now that we have a good baseline Earnings number we need to look at Interest, Taxes, Depreciation, and Amortization. Interest Expense. The interest you can add back is all interest from debts and credit cards and consumer debts. It also can include finance charges. What interest does not include is bank fees, charges, or merchant [...]

By | 2017-12-15T15:34:44-07:00 December 15th, 2017|Business Valuation Expert Tips and Information|0 Comments

What is missing from EBITDA?

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 [...]

By | 2017-11-30T19:28:01-07:00 November 30th, 2017|Business Valuation Expert Tips and Information|0 Comments

Top Value Drivers For Your Business for Business Valuation

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 [...]

By | 2017-10-11T17:05:06-06:00 October 11th, 2017|Business Valuation Expert Tips and Information|0 Comments