Tag Archives: Business valuation appraisal

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 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

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , | 3 Comments