It is difficult to sell your business if YOU are the business. As you begin to consider an exit, it is imperative to train key employees to take over the duties with which you or the other owners may have been responsible. Since a buyer is willing to pay only for the future anticipated cash [...]
Tags: Selling a Business
When evaluating a company’s ability to repay debt, a bank typically evaluates the company’s debt-coverage ratio. This ratio divides the company’s net cash flow from operations by the total debt payments (principle plus interest) to determine the number of times operating cash flow can service or repay the debt. In equation form: (Earnings before Interest, [...]
Tags: Buying a Business