Comprehensive planning ahead of a transaction with input from an investment banker and a wealth advisor can make the difference between “hitting your number” and “leaving money on the table.”
Rolling Equity in a transaction diversifies a business owner’s risk profile by taking chips off the table while still holding meaningful equity with significant upside.
Selling a business is complex, and since there are no “do-overs”, it is worth the extra effort, time, and money to be properly prepared.
A key metric that is relied on with the market approach is normalized earnings before interest, taxes, depreciation, and amortization (EBITDA).
A QofE provides a professional, third-party analysis that validates the financial information an owner has shared about the business.
Business owners contemplating the sale of their business should have an idea of what their adjusted EBITDA is and how certain inputs affect this value.