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Why the Working Capital Calculation is Crucial When Buying or Selling a Business
Why the Working Capital Calculation is Crucial When Buying or Selling a Business

When valuing a business for sale or purchase, owners often believe that the value will be based on a cash-free debt-free multiple of earnings. While this is technically correct from a valuation point of view, the commercial reality of working capital requirements is often overlooked and is the cause of disputes. Working capital is a […]

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Enterprise or Equity Valuation? Why Getting the Terminology Right Saves Time and Costly Misunderstandings
Enterprise or Equity Valuation? Why Getting the Terminology Right Saves Time and Costly Misunderstandings

Whether it be a family law property settlement or a business purchase, it is important that the negotiating parties are aware of what is and is not to be included in the transaction. Before negotiating value of the assets, the parties should have a clear understanding of what assets are on the table in the […]

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Business Valuations for Succession Planning
Business Valuations for Succession Planning

Business valuations play a very important part in succession planning for any business. If you overestimate the value of your business then you could reduce the chances of a successful sale, and no one wants to underestimate the value of what is often their most valuable asset. A business valuation also provides valuable insights into […]

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