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Assets and Business Value
I want to discuss the essential aspect of this approach, where assets—whether tangible or intangible—are considered as integral parts of the business and not evaluated separately. The capitalization of earnings method is a widely used approach for valuing businesses....
Mastering the Art of Add-Backs
Mastering Add-Backs: Unlocking Business Acquisition Loans Are you looking to secure a loan for a business acquisition? One essential aspect of the loan application process is properly presenting add-backs. Add-backs are adjustments made to a business's financial...
Top 14 Concerns Before Selling Your Business
When a business owner is considering working with a business broker, they have several initial hesitations and concerns. We have compiled a list of the common hesitations followed by how Bockus Consulting-Business Brokerage solves each objection. Cost: Business owners...
Understanding the Relationship Between Risk and Earnings Multiples
What is the relationship between risk and earnings multiples? When assessing the value of a business, one of the key factor's investors consider is the earnings multiple. This multiple is a measure of how much investors are willing to pay for each dollar of a...
The Motivation Behind Business Selling
It's easy to assume that business owners selling their ventures are simply looking to cash out, the reality is often quite different. The distinction between wanting to sell and needing to sell. Wanting to Sell: Many entrepreneurs dream of building successful...
In the Selling Process, the Shorter the Timeline – THE BETTER
In the selling of any business, especially in times of a volatile or uncertain economy, speed is of the essence. Faster is always better and can radically improve the likelihood of success.The total process of selling a business can take anywhere from two months to...
Zero or Negative Cash Flow
Valuation 101: when a business has a zero or negative cash flow – what is the value? The value of a negative cash flow business reverts to the hard assets: Property Buildings Equipment Trucks Machinery Furniture Fixtures What you don't know can be costly – we help...
Step by Step Process of How to Use the Discounted Future Earnings Method.
To calculate the value of company ABC using the discounted future earnings method, we need to follow these steps: Step 1: Calculate the average annual growth rate. The short-term growth rate is 7%, and the long-term growth rate is 3%. We need to calculate the average...
What do I do if I sell my business and I owe money?
The type of sale and structure of the sales agreement will determine the answer. If you enter into a stock sale – the buyer is purchasing the business entity and all that comes with it – including liabilities. The corporation operates under the same...
11 Characteristics of the “Perfect Business”
What everyone wants to know.