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