Knowledge Base

What is SDCF (Seller’s Discretionary Cash Flow)?

Definition The pre-tax earnings of the business before non-cash expenses, one owner’s compensation, interest expense or income, as well as one-time and non-business related income and expense items. If there are additional owners working in the business, their compensation needs to be adjusted to market rates. What It Means Seller’s...
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Stock or Asset Sale – Whats the Difference?

One of the key questions Buyers and sellers face in every business sale is the related tax implications. Tax implications are based on how the transaction is structured. Without proper consideration, there can be unintended consequences and unexpected costs.  Corporations can be sold as either stock or asset transactions. This...
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Private Company Valuation Trends

Over the last several years, the M&A markets in the U.S. have been fueled by an increased access to capital and improving economic conditions. In general deal multiples for small and mid-market companies have increased since the collapse of the financial markets in 2008. The wild swings seen in public...
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Buyer Feasibility Test

It is very common for a business owner to overestimate the value of his or her business. This is quite natural since we all want our businesses to be worth as much as possible—especially when it comes time to sell. Because of a Buyer’s need to capitalize the acquisition, typically...
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Customer Loyalty Trumps Satisfaction

In this environment, it’s all about satisfying the customer. Do what you say you’ll do, meet client expectations, and your business will thrive, right? Not quite. According to Eric Gregg, managing partner of Inavero, a Portland, Ore.–based research firm specializing in satisfaction surveys for professional services firms, many companies get...
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