Chapter
How to Accurately Value Your Business for Sale
13:28 - 17:59 (04:31)
Inaccurate valuation of businesses, when done with the aim of selling or buying, can lead to financial loss and emotional stress during due diligence. It's important to properly calculate seller's discretionary earnings - net income plus ad backs- to get an accurate representation of a company's profits and value.
Clips
Business owners often do not know the true value of their most valuable asset, which is their business.
13:28 - 14:46 (01:18)
Summary
Business owners often do not know the true value of their most valuable asset, which is their business. Calculating the seller's discretionary earnings is crucial for a successful exit strategy and making the business more valuable.
ChapterHow to Accurately Value Your Business for Sale
Episode#21 - How To Value, Sell and Buy Online Businesses
PodcastMy First Million
Learn about the process of determining the value of a business through calculating the seller's discretionary earnings (SDE), which is the net income plus owner benefits or "ad backs."
14:46 - 15:30 (00:44)
Summary
Learn about the process of determining the value of a business through calculating the seller's discretionary earnings (SDE), which is the net income plus owner benefits or "ad backs." The hardest part is often getting entrepreneurs to use good accounting software and keep their finances organized.
ChapterHow to Accurately Value Your Business for Sale
Episode#21 - How To Value, Sell and Buy Online Businesses
PodcastMy First Million
It's crucial for business owners to have accurate financial records to avoid overpricing their business and prevent it from falling apart during the due diligence process when selling.
15:30 - 17:59 (02:28)
Summary
It's crucial for business owners to have accurate financial records to avoid overpricing their business and prevent it from falling apart during the due diligence process when selling. Failing to do so can lead to adverse consequences for the seller's financial future.