Category Archives: Business Valuation & Appraisal

A discussion of the issues involved in valuation / appraisal of a business by William Bruce, president of the American Business Brokers Association.

What Are the Differences Between EBITDA and Seller’s Discretionary Earnings (SDE)?

The differences between EBITDA and Seller’s Discretionary Earnings (SDE) cause confusion.  Sometimes the two terms are incorrectly viewed as interchangeable, but there are important differences. First, some definitions.  Both are business performance benchmarks that are widely used in valuing a … Continue reading

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Considering Buying a Business? Here’s a List of the 6 Most Frequently Asked Questions.

The most frequently asked question by individuals who are considering buying a business and answers by William Bruce, President, American Business Brokers Association. Continue reading

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Best and Worst Franchises Listed by SBA Loan Defaults

This is an article by William Bruce containing a list of the best and worst franchises as ranked by SBA loan default rates. Continue reading

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Buying or Selling a Business? Use These 7 Negotiating Tips.

Once an initial and contingent written offer to buy or sell a business has been made, the transaction usually enters the negotiation phase. The negotiation phase is really not complicated. Most likely you’ve already bought a car and/or a home. The negotiations over the price of a business are similar. Here are seven suggestions to help.
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Buying a Business? Here’s How to Write a CONTINGENT Offer.

Let’s say you have looked at several businesses for sale and narrowed it down to the one that you want to pursue. You think you might want to make an offer on this business, but you’re not quite sure. You have a little anxiety about the unknowns. You wish you had more in-depth details on the business. This blog post shows you how to handle the situation like a pro. Continue reading

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Using Rules-of-Thumb to Quickly Estimate Business Value

Estimating the value of a business based on appraisal rules of thumb and guidelines using a multiple of cash flow or a percentage of revenue. Continue reading

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Become a Business Broker with ABBA Business Broker Training

Do you want to become a professional business broker?  If so, there is no better option than the business broker training program offered by the American Business Brokers Association. For individuals considering becoming business brokers, the business broker training seminar … Continue reading

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Here’s How to Value a Restaurant or Bar Business

Certain situations require a formal, fully documented business appraisal. However, what we’re talking about here is not a formal appraisal but rather the informal methods of quickly approximating the value of the restaurant or bar. All of the guidelines we’ll quote are averages derived from hundreds of completed transactions reported to regional and national databases. There are two methods of quickly approximating the value of a business …
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The Top 3 Critical Issues in Buying or Selling a Business

More and more individuals are now viewing small business ownership as a viable alternative to the vagaries of corporate America. As the founder of Sunbelt Business Brokers said recently, “There is no more job security. The only job security you’ve got nowadays is the person looking at you in the mirror.” These are the top 3 issues involved in buying or selling a business. Continue reading

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Here’s How to Value a Retail Business

What is a retail business worth? Here are some rule of thumb guidelines to quickly estimate value. Continue reading

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