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 [...]

By |2021-08-13T12:04:35-06:00August 13, 2021|

Business for sale? What is my responsibility?

The prospective buyer and seller has a responsibility for understanding the business for sale.  Or do they? The listing agreement said... The offer said... The various amendments said... The buyer or seller says:  "but does it say this?"  The wise broker will say at the very most:  "My interpretation of the language is this....but you should check legal and accounting counsel." In a recent transaction the seller said, "I learned in my last [...]

By |2010-06-03T21:32:45-06:00June 3, 2010|
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