The 6 Key Items Influencing a Company’s Value with Two Working Owners

The key issues that influence a company’s value when there are two working owners:

1.    What is the profit level of the business after allowing for the second partner’s salary Sellers Discretionary Earnings (SDE)?

2.    Do a few customers dominate the sales?  I see some great companies where one customer is over 50% of the sales volume. In this case if the biggest single customer left, the company’s value would collapse? Read more

Fast Food Business Ownership: Making a Fast Food Business So That It Virtually Prints Money

  Fully half of all the businesses that are sold are retail food storefronts. This includes franchise, non-franchise, sandwich shops, bagel shops, coffee shops, as well as good old fashioned sit-down restaurants. Half!

How to Evaluate the True Worth of a Business: Adult Day Care Centers

Business Evaluation Case Study – Adult Day Care Centers

Is the claim that there is big profit in Day Care Centers, too good to be true?

Are Adult Day Care Centers making the big money they claim?

Last year I was asked to do a business evaluation and financial review of an Adult Day Care Center in Ventura County and render an opinion as to the profitability and viability for a client wanting to buy this business for the full asking price or for any other price. I was told before I began, that it was clearing $50,000 per month profit, and the asking price was $3 million.

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Business Buyer Mistakes: Are the “Top 10” Businesses to Buy Really Tops?

Recently, I was sent a report of, “Which Business Types Were The Top Sellers,” based on the information provided by one of the top business-for-sale web sites, in the world. Read more