Selling a business is a significant undertaking, often requiring sellers to present their financials in the best possible light. One crucial aspect of this process is the identification and verification of addbacks and taxable losses. However, in the complex world of business sales, my mantra “If in doubt, leave it out” becomes a guiding principle.  Here is my advice when preparing financial statements and the wisdom of erring on the side of caution.

by | Mar 7, 2024 | Business Appraisals

Understanding Add Backs and Taxable Losses: 1. Addbacks: Addbacks are adjustments made to a business’s financial statements to reflect the true earning potential of the company. These adjustments typically involve discretionary expenses, one-time costs, or owner...

Business Valuation 101

by | Feb 13, 2024 | Business Appraisals

If someone is going to buy your business – how will you determine a sale price and justify the sale price to the buyer? When it comes to determining the value of a business, appraisers employ various methods, each designed to provide a different perspective on a...
Assets and Business Value

Assets and Business Value

by | Oct 3, 2023 | Business Appraisals

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....
Zero or Negative Cash Flow

Zero or Negative Cash Flow

by | Aug 22, 2023 | Business Appraisals

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...