When we began this series, we started with one of the most common questions business owners ask: What is my business worth? It is an important question, but after exploring the factors that influence value, many owners come to realize there may be an even more important question to ask:…

In the previous article, we discussed the difference between Seller’s Discretionary Earnings (SDE) and EBITDA, and why the same business may be evaluated differently depending on the type of Buyer involved. Once the earnings base is determined, the next step in the valuation process is applying a multiple to those…

In the previous article, we discussed the importance of reviewing and recasting financials to determine the true earning power of a business. Once those adjustments are made and the earnings base becomes clearer, the next question is how those earnings should actually be viewed. This is one of the most…