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.

Here’s How to Write an Offer to Purchase a Business.

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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What Are the Rules of Thumb for Business Valuation?

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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Business Broker Training From the American Business Brokers Association

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 3 Most 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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What Are the Seller’s Discretionary Earnings of a Business?

What is discretionary cash flow? It is NOT the profit or loss that you show Uncle Sam on your tax return. It’s important because it provides an accurate picture of the true cash producing ability of the business. In effect, it uncamoflages the bookkeeping praqctices of most business owners. This article exlpains how to compute the important number. Continue reading

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What Is a Business Broker? What Does a Business Broker Do?

What do business brokers do? Very few people know, as the profession usually operates under the radar. Business brokers are intermediaries who facilitate …. Continue reading

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The Two Dramatically Different Definitions of “Amortization.”

The term amortization has two distinctly different meanings. It’s confusing to have such distinctly different meanings attributed to the same word, with both being used in the financial world.  We hope this article helps a bit to clear up the misunderstanding we frequently encounter. Continue reading

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The 3 Financial Benchmarks All Small Business Owners Should Monitor.

These three financial ratios don’t take long to calculate and should be checked frequently to monitor the health and viability of your small business. Continue reading

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