Knowledgebase
What Is Owner Dependence in a Business?
Owner dependence describes how much a business relies on its current owner to operate, generate revenue, and maintain customer relationships.
What Is Business Transferability and Why Does It Matter?
Business transferability refers to how easily a business can continue operating successfully under a new owner. A highly transferable business can be handed off to a buyer with minimal disruption to customers, employees, and revenue.
What Is a Valuation Multiple and How Is It Calculated?
A valuation multiple is a simple way to estimate what a business may be worth based on its earnings or other financial metrics such as revenue.
What Is Seller’s Discretionary Earnings (SDE)?
Seller’s Discretionary Earnings (SDE) is a measure of total financial benefit to a single owner operator, typically calculated by taking net income and adding back owner compensation, interest, taxes, depreciation, amortization, and discretionary or non recurring expenses.
How are Businesses Valued?
There are three main ways to value a business. In practice, they are often used together. They include the market approach, the income approach, and the asset approach.
What is a Business Valuation?
Understanding Business Valuations
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