Business Valuation Expert Tips and Information

What is Fair Market Value anyhow?

By Rick / Comments Off on What is Fair Market Value anyhow?

When determining the value of a business there are many terms which can be confusing.  The term most often used if Fair Market Value and is defined as: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller […]

Read More

What is missing from EBITDA?

By Rick / Comments Off on 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 […]

Read More

Who Drives Your Business Impacts the Value of Your Business

By Rick / Comments Off on Who Drives Your Business Impacts the Value of Your Business

  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 […]

Read More

Top Value Drivers For Your Business for Business Valuation

By Rick / Comments Off on 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 […]

Read More

How Having Multiple Owners Affects Business Value

By Rick / Comments Off on How Having Multiple Owners Affects Business Value

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 […]

Read More
Shopping Cart