Blog Header
Valuation

Why Knowing the Value of your Business is Important

Do you know what your business is worth?

Best Practice

Best Practice
blog image

Financial Statement Adjustments

Let’s look at some of the most frequent financial statement adjustments that should be considered during a business valuation.

Best Practice
blog image

Arm’s Length vs. Non-Arm’s Length Transactions: How Does This Affect the Value of Your Company?

In real estate, arm's length transactions refer to a business deal where parties involved have no previous relationship prior to negotiating an agreement. In this type of transaction, the buyer and seller act independently without one party influencing the other. 

Best Practice
blog image

Calculating Cash Flow (Appraiser vs. Lender)

Seller’s Discretionary Earnings (SDE) is an integral cash flow stream for small businesses.  SDE encompasses all cash flows paid to a single owner-operator, including an adjustment for owner’s salary, discretionary expenses and nonrecurring income/expenses.

How To

How To
blog image

How to Mitigate Risk of Customer Concentration

To first understand how to mitigate the risk of customer concentration, you first must understand what customer concentration means. 

How To
blog image

Identifying and Adjusting Other Income

Companies may report secondary sources of income that are not derived from its main business on their income statements. To determine whether this income should be included in the value of a business, you must first know what the income is related to. 

How To
blog image

The Rent Adjustment: A Top 5 EBITDA Adjustment in Business Valuations

Whether a business owns or leases the faciltiy which it operates from can have a large impact on business value.  

Valuation

Valuation
blog image

Calculating Cash Flow for a Business

In general, a small to mid-sized business is defined as a business that is privately owned and usually has up to 500 employees, depending on its industry. Calculating the cash flow of these small to mid-sized businesses can be tricky because one will need to account for a number of different factors.

Valuation
blog image

How Owner Involvement Affects the Value of a Business

When determining the fair market value, lots of different factors are considered, such as annual revenue, risk, assets, and liabilities.

Valuation
blog image

How Recurring Revenue Affects Business Value

Recurring revenue is the portion of a company’s revenue that will continue into the future. It is important to note that these are not the revenues that are just expected to continue, but the revenues that can be counted on to occur in the future.