business value

Friday Mailbag: Business Value in a Crisis & Earn-Out v. Fixed-Price Sale

Last week, we responded to questions about the various provisions of the CARES Act, which were critical for businesses as they navigated the Paycheck Protection loan applications. This week, for our second installment of our Friday Mailbag series, we had two more great questions from clients who are still trying to figure out how their […]

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EBITDAC

How Will the Coronavirus Pandemic Affect the Value of My Business?

Guest Author, Matthew FitzGibbon, CBI, ASA Matthew FitzGibbon has a diverse background in business operations, transactions, and commercial real estate. He has a Certified Business Intermediary (CBI) designation from the IBBA and is an Accredited Senior Appraiser (ASA) in the American Society of Appraisers. He is also the President of FitzGibbon Alexander, Inc., a Central

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cost of litigation vs partnership agreement

Can You Afford to NOT Get a Partnership Agreement?

The role of a business lawyer and the cost of legal services during the formation process and early stages of a new multi-owner business are perennial concerns for business partners. The owners often don’t see the benefits of paying a couple thousand dollars to draft a partnership agreement that doesn’t appear to bring them any

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down payment on business purchase

Why Down Payment and Debt Service Are Key to Your Business Purchase

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

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financial recasts and business value

How Financial Recasts, SDE, and Multipliers Affect Business Value

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

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business financial planning strategy

Over the Hill and to the Moon: Financial Planning for Your Business Future

Most business owners run the day-to-day operation of the business in its early stages. But in order to grow a business successfully, those same owners have to make a transition from working in their businesses to working on their businesses, from employee to owner. This transition can be difficult, but it’s vital to avoiding a

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employer mistakes

Three Costly Employment Mistakes

Employees are absolutely necessary to build and grow a profitable business. Often, in fact, they are considered a business’ most valuable asset. But—whether at the hiring, management, or firing stage—poor employment practices can have disastrous financial or legal repercussions. Proper hiring and training practices are essential to ensure that you bring on qualified employees who

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improve business salability

7 Easy Steps to Improve the Salability of Your Business

In business there is one timeless rule: you will leave your business at some point. Business owners should always prepare for their business exits well in advance. In my experience, an unplanned exit will usually be an unprofitable one. Great care should be taken when you’re considering selling your business to a third party buyer.

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