Category: Valuing A Business

When you reach the point of having to value a business for sale, buyers often handcuff themselves and do not even realize they are doing it. Although putting a price tag on a business is more of an art than…

When I first entered the business brokerage world a number of years ago, a colleague at the firm told me that “every business is overpriced the day it is listed for sale”. Often, it can be a seller who thinks…

There is usually a very healthy debate between buyers and sellers regarding each side’s calculation of the total Owner Benefits (OB) figure. First, let’s clarify what exactly is Owner Benefits, which can be referred to as Owner’s Cash Flow, Seller’s…

I get absolutely crazy whenever a buyer tells me they are looking to buy a “cash” business and I get equally nuts when a seller tells me there is more revenue than what they show. I know, some of you…

  In this audio Richard Parker talks about how to value a business.

Although I am a huge believer in the value of utilizing effective data when making any decision, one area where prospective business buyers and sellers often get side tracked is when attempting to use industry specific information regarding a business…

One of the most common issues that prevents a business for sale from getting to the closing table is the actual valuation process and the inability for the parties to get past it successfully. There are fundamental challenges that face…

When investigating a business for sale that involves inventory, there is often confusion regarding how it should be treated in the overall valuation. In some industries, it is common for the inventory to be carved out so that the asking…

I am often asked by various publications to comment on the business for sale market given the economy at any particular time or when there may be an election looming.I am neither an economist nor psychic, so while I always…

A common issue that comes up when attempting to value a small business are the add-backs. The entire concept behind doing add-backs is to normalize a company’s earnings and to present the business as an owner operated entity. For example,…