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.

Why Do Business Buy-Sell Agreements Fall Apart?

There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided. Understanding is the key word. Both the buyer and the seller must develop an awareness of what the sale involves–and such an awareness should include facing potential problems before they swell into floodwaters and “sink” the sale. Continue reading

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What is a Franchise REALLY Worth? How to Value any Franchise.

What are franchised businesses really worth? This listing gives quick valuation estimates for over a hundred franchises. Continue reading

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What is a Business Owner’s Discretionery Cash Flow or Seller’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 Is a Master or Regional Franchise?

Sometimes called regional franchises, a master franchise is a special type of franchise agreement that gives an entrepreneur the exclusive rights to sell or open a given number of franchises in a large geographical area. Stated another way, it is the owning of the rights to develop a franchise system within a territory. The territory can be a metropolitan area, an entire state, several states or a whole country. Continue reading

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What is Business Goodwill? How is it valued?

As a business broker and president of the American Business Brokers Association, I’m often asked about business goodwill. Goodwill is an intangible asset of an ongoing business. It is intangible as opposed to the tangible assets of a business which may include furniture, fixtures, equipment, inventory and real estate. What creates goodwill? Many factors may contribute to the goodwill value of a business. Such considerations are … Continue reading

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Latest Survey of American Attitudes Toward Restaurants

A new Rasmussen Reports national telephone survey finds that 47 percent of American adults say they are going out to eat less often than they were six months ago. While that finding shows little change from January, it’s down 10 points from November 2008. 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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