Tag Archives: discretionary cash flow

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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How to Analyze a Business You’re Considering Buying

Let’s say you’re serious about going into business for yourself and have identified an attractive business that is for sale. You’re interested in investigating the opportunity. What’s next? How do you check it out? Continue reading

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Using Rule-of-Thumb Guidelines to Estimate Business Value

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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