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

There are 3 basic approaches to value your business:  the Asset Approach, the Income Approach and the Market Approach. The Asset Approach is based on the principle of substitution.  Meaning, it assumes that no prudent buyer / investor would pay more for a particular business than the cost to reproduce it right across the street.  [...]

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I was asked the other day if aggressively paying down debt prior to an ownership transfer would positively or negatively affect the valuation of a small closely-held company.  What a great question!  The answer: It will have no net effect on the seller.  Here’s why:    If an asset deal is being contemplated, then by definition, [...]

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