In the third part of “Paying the Right Price,” we looked closely at how to use the SDE and value multipliers together to calculate business value. This was an important step for a business buyer to ensure an accurate purchase price. The final part of this four-part video is going to cover two related topics […]
Why Down Payment and Debt Service Are Key to Your Business Purchase Read More »
We introduced in the first part of the “Paying the Right Price” some key terms and phrases used in business valuation. We also covered a couple of the important drivers of business value. Part 2 is going to get a little more technical. The seller will have used various financial documents to determine the sale
How Financial Recasts, SDE, and Multipliers Affect Business Value Read More »
The valuation process can be quite complex, and valuation experts have a number of methods that they use to calculate the value of a business. Our goal here isn’t to make you a valuation expert—I promise I won’t even make you do math! What we want to do is make you conversant in the topics
Key Terms and Drivers of Business Value Read More »
Getting the initial offer to buy a business right is vital to ensure a smooth purchase transaction. Your best option is to have a business lawyer draft your letter of intent (LOI) to ensure it accomplishes the five goals of an LOI. Those goals are dependent on having certain provisions and sections in the letter.
5 Critical Sections for Your Letter of Intent Read More »
Many first-time business buyers are shocked at how little information they receive about a business in the early stages of the buying process. And yes, it’s true that the financial information isn’t going to be all-inclusive. But financial information isn’t all there is to know about a business. You can and should use all (legal)
How the In-person Visit Fits into the Business Buying Process Read More »
There are two primary ways that a business can be bought or sold: a stock (or equity) sale or an asset sale The most common method, by far, is the asset sale, but that doesn’t mean an asset sale is the best option for you. Many factors influence what deal structure will maximize your benefits
How to Choose Between a Stock and Asset Sale Read More »
