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MA-Selling

Sell-side Mergers and Acquisitions.

Adjusted Cash Flow Necessary to Reflect True Economic Performance

Normalizing adjustments or addbacks are important for valuing a business because they reflect the true economic performance of the business and allow for a fair comparison with other businesses in the same industry. By removing the effects of non-recurring or discretionary transactions, the normalized EBITDA (Earnings Before Interest, Taxes, Depreciation,… Read More »Adjusted Cash Flow Necessary to Reflect True Economic Performance

Decoding the Average EBITDA Multiplier: Understanding Its Variability and Industry Differences 

The average EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiplier is a ratio that indicates how much a buyer is willing to pay for a business based on its EBITDA. It is calculated by dividing the enterprise value or purchase price of a business by its EBITDA. The average… Read More »Decoding the Average EBITDA Multiplier: Understanding Its Variability and Industry Differences 

Removing Emotion from Business Valuation: Educating Yourself on Key Value Factors for an Objective Perspective 

One way to take some of the emotion out of the valuation process is to educate yourself on the factors that influence the value of your business. By understanding the why and looking at your business as if you were going to acquire it, you can have a more objective… Read More »Removing Emotion from Business Valuation: Educating Yourself on Key Value Factors for an Objective Perspective 

Understanding the Disconnect in Business Valuation: Overestimation of Value and Misjudgment of Market Realities 

One possible reason for the disconnect is that business owners tend to overestimate the value of their intangible assets, such as customer loyalty, brand recognition, reputation, and goodwill. While these factors are important and can enhance the value of a business, they are not easily quantified and verified by potential… Read More »Understanding the Disconnect in Business Valuation: Overestimation of Value and Misjudgment of Market Realities