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So far pdakin has created 211 blog entries.

Seller’s Discretionary Earnings (aka cash flow to single owner) Vrs. EBITDA

  Yesterday a valuation client asked if her EBITDA value given by CPA would be the same as what I calculate.  Frankly I just don’t know and really don’t want to know the CPA’s calculation until AFTER mine is completed. While this is yet to be learned about her company, most small companies, let’s say with several million or less in revenue, with single owners operating the business are not usually calculated on [...]

2022-11-18T14:21:23-07:00August 13, 2021|

What About Sellers Sharing Risk

When I first started in the business of brokering businesses, I was told most all sales are seller financed.  Not so today. Often a cash offer is discounted by 10 - 20% because it takes away the Seller's risk. Even with SBA financing being as delightful as it is now, sellers do sometimes share in the risk a buyer has.  These are some examples: In each case a price is determined/negotiated for the [...]

2021-07-09T12:31:54-06:00July 2, 2021|

So You Want to Sell Your Business

Do you want to be ready to sell? These are key pieces for your consideration. Have your personal financial plan in order, including a likely net gain from the sale of the business. Know the value of your business. Know that these positive characteristics can impact the value: Not being dependent on you, the owner – if you go away, do the clients leave with you? Have recurring revenue Be growing, not declining [...]

2021-07-09T12:32:08-06:00June 23, 2021|


APPLY BY  3/31/21 OUR NM ELECTRIC PROVIDER IS OFFERING RELIEF How does the PNM Small Business COVID Relief Program Work?   ·    $500 assistance for PNM customers in arrears (recently increased from $200) ·    A total of $500,000 can be awarded to small business customers ·    Deadline to apply is March 31, 2021   ·    Fill out an application online here   What are the Requirements for a Small Business to Qualify? ·    [...]

2021-02-17T10:16:49-07:00February 16, 2021|

COVID Relief – 2021

Just some new tidbits on PPP for the new opportunity - Reminder - you need to show quarter over quarter decline 2019 to 2020 and owned the business 2/15/20. Forgiveness categories are now (and maybe retroactively to 2020 PPP): Up to 40% Covered supplier costs - not building inventory but supplies used in operations Covered operations expenditures - this is cloud based computing, systems to work in time of COVID Worker protection expenditures [...]

2021-01-15T10:38:50-07:00January 15, 2021|

Comparing Signed Relief Bills – March/December 2020

This is a brief summary of the new and former relief bills. The $900 billion stimulus bill is seen as a short-term relief package until early 2021, where President-elect Joe Biden and his administration are expected to introduce yet another stimulus package to address some of what the $900 billion bill leaves out.   New stimulus bill (Dec. 2020) CARES Act (March 2020) Total cost of stimulus package $900 billion $2.2 trillion Stimulus [...]

2021-02-17T10:17:37-07:00January 4, 2021|

December 2020 New Relief Bill – Includes PPP Funds & More

Finally, yesterday, 12/30/20 it was decided, the Senate has elected to not approve  additional funds for individuals.  So, the bill agreed earlier in the month by congress and signed by the president stands. Key features include: Direct payments of up to $600 per adult, Enhanced jobless benefits of $300 per week, Roughly $284 billion in Paycheck Protection Program loans, $25 billion in rental assistance, an extension of the eviction moratorium and $82 billion [...]

2021-02-17T10:18:27-07:00December 31, 2020|

NM Relief Package Passes

Business owners in NM and their staff will receive some relief. In just one day, New Mexico lawmakers yesterday passed a $330 million package of COVID-19 relief aid that will benefit unemployed workers, businesses and others impacted by the pandemic and concomitant economic downturn. House Bill 1 specifically will provide $1,200 one-time payments to people who are unemployed; grants of up to $50,000 to small businesses; and up to $750 to some low-income households. [...]

2021-07-09T12:32:17-06:00November 25, 2020|

New Mexico Business Relief – New Cares Act $$

"Gov. Michelle Lujan Grisham yesterday announced she will call a special legislative session on Nov. 24 to allocate $300 million in CARES Act funding for New Mexicans and businesses in the midst of surging COVID-19 cases and a restrictive public health law. "We want to get this relief out to New Mexicans," the governor said. "They need unemployment, they need housing assistance and businesses need grants. That gives us a day…so the Monday [...]

2020-11-20T07:57:50-07:00November 20, 2020|

NM November COVID Status for Business

As of today a number of new 2-week regulations have been put in place by the NM Governor's office.  Each business owner should read and seek legal counsel on how to proceed based on their unique needs. Find the detail here. In the spring, I prepared a video speaking to the various situations a business could be in based on their unique situation.  We are now in month 8 of, for some a [...]

2020-11-16T17:25:55-07:00November 16, 2020|
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