Just Elementary, Inc. » Entries tagged with "SDE"
Business Valuation Multiples & Multipliers, Why Your Business is not just Two Times the Profit
There are a lot of commonly used profit multipliers to determine the value of a business. You may have heard of ‘2 times the profit’, or any other version of it such as three times the profit as an ad hoc Business Valuation. The crux of the matter is: Which multiplier applies to your business and how does it fit in to a Business Valuation? The rest of the post is below the video. The short answer … Read entire article »
Filed under: Business Valuation
What is Your Business Worth? Different Factors Affecting Business Valuations
There are a lot of commonly used profit multipliers to determine the value of a business. You may have heard of 2 times the profit, or three times the profit, but do they apply to your business? The short answer is no, a Business Valuation is affected by non discrete factors, including the following. The reason for this is that there are too many variables in the phrase ‘2 times multiplier of the profit.’ Effect of Industry Type … Read entire article »
Filed under: Business Valuation
Navigating Write Offs and Addbacks in the Process of Buying and Selling a Business
What impact on the bottom line profit and overall value of the business do write off have? One of the commonly cited perks of owning a business is the ability to write off expenses and reduce the tax bill. Write offs are fairly common for business owners, but they have an adverse affect on the bottom line profit of a business, which affects the overall Business Valuation for the business. How does this happen? Well, if a … Read entire article »
Filed under: Business Valuation
Definition of EBITDA
EBITDA is a common accounting term that is used with sophisticated small businesses, it stands for Earnings Before Interest, Taxes, Depreciation and Amortization. EBITDA is basically the actual cash flow profit of the business based on the actual expenses of the business. There are two categories of items in EBITDA, one category is Taxes, which covers three of the items, amortization, depreciation and taxes themselves. Debt service expense is the other category, which covers the interest on … Read entire article »
Filed under: Business Tips
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