Previously we discussed how to use the P&L Statements and other financial documents to recast the financials and determine the SDE and value multipliers of the business you want to buy. With these numbers in hand, you can now set about double checking the seller’s sale price.
In the third part of “Paying the Right Price,” we’re going to see how to calculate business value using the SDE and value multipliers together. Using both values ensures you will pay a fair price.
[Don’t forget to watch Part 4: Down Payments and Debt Service Ratios]
Your Path to Personal and Financial Freedom
Buying a business can be tricky. We’ve simplified the process into 7 steps. This book is your go-to resource to learn why buying a business is your path to success and financial freedom.
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Here at Alexander Abramson, we focus exclusively on business-related legal matters. Our attorneys have advised business owners and entrepreneurs on business purchase and sale transactions for decades.
Ed Alexander is also a Florida licensed business broker and co-owner of FitzGibbon Alexander, Inc., a Central Florida consulting, business valuation, and business brokerage firm.
We would love to speak with you directly about how we can help you in the business buying process. Call us at 407-649-7777 or email a team member to get started.
