Where you go to buy or sell a business…..

Far too often business buyers and brokers rationalize the purchase price of a cash negative business by the value of the fixed assets available for sale.  The argument goes that if the value of the tangible assets is X, the business must be worth at least X because, even on the rainiest day, one could [...]

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One of the most common ways to enter the world of entrepreneurship is to start your own business.  A less common approach is to purchase an existing business.   The phrases “mergers & acquisitions”, “buying a business” and “business acquisition” are all terms that have become synonymous with big business.  Why? Because those are the [...]

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River’s Edge Alliance will be serving as an expert author for the GlobalBX.com – Business For Sale Blog regarding business brokerage and mergers & acquisitions.    Our first post on August 1, 2008 discussed The Advantages of Buying a Business vs. Starting a Business.  We compared and contrasted each scenario based on:   Revenue Streams [...]

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Now that we understand the difference between Net Income, EBIT, EBITDA and SDCF, let’s take a look at how these metrics can be used to determine the value of a company. You may already have some familiarity with ways in which residential real estate is valued.  For example, your neighbor’s house might be 2,000 sq. [...]

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When analyzing a company for potential acquisition you may run into terms that are not familiar to you such as:  Net Income, EBIT, EBITDA and SDCF.  Having a thorough understanding of these terms and the relationship between them may be the difference between a good financial decision and a bad one. Net Income – Net [...]

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