Value Your Company

Company Value – Part 1 What determines your company’s value when it comes time to sell it? ANSWER: EBITDA times the Multiple considered appropriate for your business by a willing buyer. Discussion: Part 1 – What is EBITDA? It is Earnings Before Interest, Taxes, Depreciation and Amortization. But calculating EBITDA is not as simple as… Read more »

Due Diligence

What is it and why you should prepare for it According to www.Investopedia.com, Due Diligence (DD) is defined as follows: Due diligence (DD) is an investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale. Generally, due diligence refers to the care a reasonable person… Read more »

ESOPs – Truth or Fables?

Employee Stock Ownership Plans (ESOPs) can make wonderful business exit vehicles in some circumstances.  That said, ESOPs are commonly misunderstood and prematurely dismissed from consideration by business owners when considering a business exit.  Some would even go so far as to compare the claims of ESOP proponents to the works of the ancient Greek writer… Read more »