Business owners don’t always understand how business valuations are performed, and they oftentimes don’t agree with the number.
They first need to understand how their company’s cash flow is computed. It starts with determining the “Add Backs” – expenses that are added to the profits to derive EBITDA (earnings before interest, taxes, depreciation and amortization) or SDE (Sellers Discretionary Earnings – used for smaller businesses).
Find out more: “What Add Backs Are Legitimate in an M&A Deal?”
|Michael Marks, creator of Toons ‘n Tips, is a Certified Business Intermediary (CBI) and has over thirty-six years of business experience and ownership. He is a licensed real estate broker in the state of Colorado and has been selling businesses for over eighteen years. Michael has taken up cartooning as a hobby in recent years and has found that by using those skills, along with his extensive business experience, he has been able to create the Toons ‘n Tips drip marketing service for clients all over the country. Find out more about Michael at www.toonsntips.com.|