Seller Education Center

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What Is Your Small Business Worth?

By 4guys | Jan 25, 2017 | Comments Off on What Is Your Small Business Worth?

What Is Your Small Business Worth? For small businesses under $20m in sales, there are two ways that businesses are generally valued. The first and more common method is the Multiple Method. The second and less commonly used method is through a rule of thumb. The third more academic way to value a business is […]

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Why Funds Can’t Buy Small Businesses?

By 4guys | Jan 20, 2017 | Comments Off on Why Funds Can’t Buy Small Businesses?

Why Funds Can’t Buy Small Businesses? Before answering this question, we need to first ask: “What is a small business?” Most investment banks, banks, and most retail investors consider a small business to have somewhere in the ballpark of $50m to $2bn in sales. Now, these numbers change some depending on exactly who you are […]

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Who Buys Small Businesses?

By 4guys | Jan 19, 2017 | Comments Off on Who Buys Small Businesses?

Who Buys Small Businesses? When we talk about small businesses, we mean firms with $20m in sales or less. Keep in mind this definition is not the standard definition of small business used by most M&A professionals (See this blog for more information). There are fewer types of buyers for small than large business. There […]

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Calculating Adjusted EBITDA

By 4guys | Jan 18, 2017 | Comments Off on Calculating Adjusted EBITDA

How to Calculate Adjusted EBITDA EBITDA EBITDA stands for Earnings before interest, tax, depreciation, and amortization. In terms of determining business value most buyers of small business use a multiple of EBITDA to determine a small business’s value. Buyers use EBITDA because it is a measure of the financial performance of the business that is […]

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