BUSINESS VALUE / THE COMPLETE PICTURE
Get beyond
the headline number.
A useful value conversation starts with the earnings, the assets being transferred, and the terms that determine your proceeds.
THREE DIFFERENT NUMBERS
Earnings.
Value.
Proceeds.
They are related, but they answer different questions. Work through them in sequence.
Establish the earnings basis
SDE and adjusted EBITDA reflect different ownership models. Reconcile proposed adjustments before applying a multiple.
Build an earnings scenario →Explore value with visible assumptions
Choose an earnings metric and a multiple range. Clarify the assets and working capital included before comparing prices.
Explore value scenarios →Follow the money through closing
Debt, fees, deferred consideration, holdbacks, and taxes can make proceeds different from headline value.
Plan proceeds →THE CONTEXT BEHIND A MULTIPLE
Details change
the interpretation.
The tools do not automatically assign premiums. Bring these questions into a business-specific review.
How dependent is the business on you?
Document operating roles, customer relationships, and the compensation needed to replace your work.
Review preparation ↗How reliable are the earnings?
Identify concentration, seasonality, documented adjustments, and recurring costs.
Read earnings guides ↗What exactly is being transferred?
Separate the business, property, equipment, inventory, cash, debt, and working-capital expectations.
Review working capital ↗What to bring to a valuation conversation
Start with recent financial statements and tax returns, a list of potential earnings adjustments, your owner responsibilities, occupancy terms, and the assets you expect to include. Agree on a secure way to share documents.
A calculator is an exploration tool. It cannot replace comparable transaction evidence, a financial review, or an appraisal when one is required for a specific purpose.
- BDC: general business valuation approaches ↗ — methodology background, not a U.S. market multiple quote.
FOR BUSINESS OWNERS
Make your next decision with better information.
Start with reviewed guides on value, preparation, confidentiality and offer terms.
Explore the owner decision guides ↗YOUR BUSINESS. YOUR NEXT CHAPTER.
Let’s make the
next move a clear one.
Talk through your goals, timing, and the questions you want answered before making a decision.