Small and large businesses alike benefit from business insights, strategic thinking, financial analysis and structured problem solving when buying or selling a business. Our business advisors understand how to logically think through business issues, piece together and analyze relevant facts and develop solutions which help our clients improve business processes, reduce expenses, lower risks and increase income regardless or whether they are buying or selling a business.
Whether or not they are thinking about selling, all business owners should know what their companies are worth. They should also be thinking about an exit strategy. We can help business owners with the mechanics and strategies of buying, selling and valuing their businesses.
Many owners have no idea. Selling a business is both art and science, and in no other area is this more evident than the valuation. While every seller wants to achieve maximum value, setting an asking price that is too high signals to buyers that you may not be serious about selling. On the othr hand, setting a price to low will scare away the sellers.
While there are a number of methods used to value a business, the most common formula for smaller transactions is a multiple of seller’s discretionary earnings (S.D.E.). This type of market-based valuation involves recasting profit-and-loss statements — adding back owner’s salary, perks and nonrecurring expenses — to find the S.D.E. of the business and then using comparable data for similar businesses to arrive at an appropriate multiple.
Structuring the purchase or sale of a business properly is a critical step in the process of buying or selling a business. Understanding the different ways to buy or sell a company can cost or save you a significant amount of money – in sale/purchase price or taxes. We have the experience to guide you through the acquisition/disposition process by addressing issues such as cash flow analysis and tax considerations.
If you have any questions related to the services below or would like to discuss additional services, please feel free to contact us at (203) 685-0346 or email us at CervitudeNetwork@gmail.com.
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