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 Seller’s Discretionary Earnings of a Business?

Posted on March 23, 2020 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged Business valuation appraisal, cash flow, discretionary cash flow, how to compute discretionary cash flow, recast, recasting, SDE, seller's discretionary earnings, Small business, William Bruce Business Broker | 32 Comments

What Is a Business Broker and What Do They Do? Here’s a Business Broker Definition.

Posted on March 5, 2020 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged ABBA, Accredited Business Intermediary, American Business Brokers Association, business broker, business broker definition, Business broker duties, Business broker obligations, business broker school, business broker training, Business intermediary, Business sales and acquisitions, Business transfer agents, Certified Business Intermediary, definition of business broker, how to become a business broker, How to become business broker, How to Sell a Business, IBBA, International Business Brokers Association, sell my business, William Bruce Business Broker, William Bruce Business Sales & Acquisitions | 13 Comments

The Two Dramatically Different Definitions of “Amortization.”

Posted on February 13, 2018 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged amortization, amortization as expense, amortization table, depreciation, intellectual property, write-down of intangibles | 2 Comments

The 3 Financial Benchmarks All Small Business Owners Should Monitor.

Posted on September 11, 2015 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged current asset vs current liability ratio, financial ratios for small business, gross profit margin, inventory turn, small business ratios for management, William Bruce Business | Leave a comment

The Best and Worst Franchise Investments as Listed by Forbes

Posted on June 26, 2015 by William Bruce

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

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged Best and worst franchises, William Bruce Business | 2 Comments

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

Posted on April 20, 2015 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged bank loan to buy business, business acquisition loan, business loan, Loan application, loan to buy a business, SBA 7a, SBA loan, William Bruce Business | Leave a comment

Selling a Business: Going to Market

Posted on October 8, 2014 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged How to Sell a Business, How to sell my business, selling a business, William Bruce Business | 1 Comment

How to Sell a Business: Buyer Acquisiton Financing

Posted on August 25, 2014 by William Bruce

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 →

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged business acquisition loans, How to Sell a Business, SBA 7a, selling my business, William Bruce Business | 1 Comment

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

Posted on August 22, 2014 by William Bruce

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

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged American Business Brokers Association, Business broker career, business broker training, how to become a business broker | Leave a comment

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

Posted on July 1, 2014 by William Bruce

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 →