Business Sales

Who is your buyer & what are they valuing?

Selecting the correct earnings figure of SDE or Adjusted EBITDA is critical to defining company value to the buyer and determining an accurate sale price. View our Value Advisor Library for industry-specific valuation reference guides.

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VR Business Sales | Mergers & Acquisitions 941 Grand Avenue

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What are your

company earnings?

Less than or equal to

$1,000,000

Business is usually valued as a multiple of

Definition & 4 Simple Steps to Calculate Adjusted EBITDA

Business usually valued as a multiple of

Definition & 3 Simple Steps to Calculate SDE

How does this buyer assess the

value of a business?

What is

valued?

Buyer is usually a

Company, Private Investor or Private Equity Group

Buyer is usually an

Individual

1-3x 3-6x

SDEAdjustedEBITDA

Greater than

$1,000,000

Most Probable Selling Price

(MPSP)

Tangible and Intangible Assets of the business

Not including accounts receivable, cash and paid

off liabilities

Market Value of Invested Capital

(MVIC)

Tangible and Intangible Assets of the business

Plus normalized Net Working Capital (NWC)

$