Financial documentation is one of the most critical elements in business valuation. Buyers and their advisors will scrutinize your financials to assess risk, verify earnings, and project future performance. Incomplete, inconsistent, or unclear records can delay the deal or lower your valuation. Ideally, you should have at least three years of clean Profit & Loss […]
Seller’s Discretionary Earnings (SDE) is a key metric used in small business valuation. It represents the total financial benefit a full-time owner-operator derives from the business. SDE is calculated by starting with net income and adding back items like owner salary, non-recurring expenses, interest, taxes, depreciation, and personal perks. Understanding and maximizing your SDE is […]
When preparing to sell your business, increasing its value can significantly impact your final sale price. You can either take the initiative to improve the business yourself or enlist the expertise of a business improvement consultant to optimize operations, and a business valuation consultant to help you understand and strategically increase your company’s market value. […]
Introduction to Our Business Value Blog Series If you’ve ever typed “what is my business worth” or “how to sell a business” into Google, you’re not alone. Whether you’re planning to sell your business in the near future or simply want to build long-term value, understanding how to position your company for maximum return is […]