Tag Archives: Business Value

Business Value: Do Your Numbers Add Up?

Most small business owners don’t understand how to value their companies. For some, misunderstanding the way that buyers look at the value of your business can be very costly in the long run. The fourth of our Rights and Obligations … Continue reading

Posted in Entrepreneurship, Exit Planning | Tagged , , , , , , , | 3 Comments

3 Responses to Business Value: Do Your Numbers Add Up?

  1. Jeff Thomas says:

    Jon,
    Where can i find more on SDE evaluation?

    Jeff

    • John F. Dini says:

      Jeff,
      Pratt’s Stats, among others, will show historical and conparative valuations using SDE measures. To calculate your own SDE, I am sending a worksheet I created directly to you.

  2. Larry Amon says:

    John,
    I agree that most business owners take advantage of personal perks while running the business and I think most buyers realize that. When it comes to selling the business I have business owners recast their financials to deduct their perks and add back in a salary for the new owner. It reflects the true value of the company and the buyer can make their decision based on the recast numbers without the tax burden for the owner for the previous three years.
    Larry Amon

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