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 a Company’s Discretionary Earnings?

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 Do Business Brokers 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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The Best and Worst Franchise Investments

Forbes Magazine’s list of the best and worst franchises to buy. Continue reading

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Types of businesses most and least likely to be approved for SBA loan

By William Bruce It’s well known that some types of small to medium size businesses are more likely to receive SBA loans than others. We are indebted to George Heaslip, “The Loan Professor” for the following ranking.  George is an independent … Continue reading

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Selling a Business: Going to Market

Please keep in mind that selling a business is not an overnight project.  It takes time.  My experience has been that six to eight months is about average. Previous articles have discussed the importance of having a good reason for … Continue reading

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How to Sell a Business: Buyer Acquisiton Financing

In addressing how to sell a business, we’ll discuss in this article the issue of buyer acquisition financing.  Previous articles have dealt with being able to give a good reason for selling your business, getting your business ready to sell, … Continue reading

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Thinking of becoming a business broker? Looking for business broker training programs?

How to become a successful business broker with appropriate training. Continue reading

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How to Sell a Business: The Critical Question of Price When Selling a Business

Nothing causes the buyers and sellers of privately held businesses more anxiety than the problem of valuation. The question of selling price haunts both parties. The seller doesn’t want to price his business too cheap and “leave money on the table”. On the other hand, the buyer of the business is afraid he’ll pay too much and not get the best possible deal. Continue reading

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