Who is your buyer & what are they valuing?
1
Business Sales Who is your buyer & what are they valuing? Selecng the correct earnings figure of SDE or Adjusted EBITDA is crical to defining company value to the buyer and determining an accurate sale price. View our Value Advisor Library for industry- specific valuaon reference guides. Ready to value your company? Contact us for more informaon or a free business valuaon. Free Business Valuation VR Business Sales | Mergers & Acquisions 941 Grand Avenue New Haven, CT 06511 (203) 772-3773 VRNUTMEG.COM 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 SDE Adjusted EBITDA 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) $
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Transcript of Who is your buyer & what are they valuing?
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.
Ready to value your company? Contact us for
more information or a free business valuation.
Free Business Valuation
VR Business Sales | Mergers & Acquisitions 941 Grand Avenue
New Haven, CT 06511(203) 772-3773
VRNUTMEG.COM
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)
$
