Business Valuation

Determine the purpose of the valuation Gather at least 3 years of financial statements Normalize earnings by adjusting owner salary, one-time expenses, and non-business items Calculate revenue,...

Use a revenue multiple Use an EBITDA multiple Use a gross profit multiple Use a discounted cash flow estimate Compare to similar businesses sold recently Apply an asset-based valuation Adjust...

Determine seller’s discretionary earnings (SDE) or EBITDA Choose the appropriate valuation multiple for the industry Multiply SDE or EBITDA by the selected multiple Add excess cash and...

Determine annual revenue Determine annual profit or EBITDA Choose a valuation method Apply a revenue multiple Apply an EBITDA multiple Apply a profit multiple Estimate discounted cash flow Assess asset value Assess...

Identify the purpose of the valuation Gather financial statements and tax returns Normalize earnings for one-time or non-recurring items Calculate revenue, EBITDA, and net income Review assets and...

Review financial statements Calculate EBITDA Analyze revenue and profit trends Assess assets and liabilities Evaluate cash flow Determine market comparables Apply valuation multiples Estimate discounted cash flow Consider customer concentration Assess management quality Review...

Determine the business’s annual revenue Calculate normalized EBITDA or seller’s discretionary earnings Review net profit and cash flow Analyze industry-specific valuation multiples Compare similar businesses recently sold Assess tangible...

Determine seller’s discretionary earnings (SDE) or EBITDA Normalize financial statements by removing owner-specific and one-time expenses Review revenue trends by service, replacement, maintenance, and commercial work Analyze...

Determine the purpose of the valuation Gather financial statements and tax returns Normalize earnings and remove one-time items Review revenue, profit, cash flow, and growth trends Assess assets,...