BizValuation Approach – Maximize your Business Value!
The BizValuation process provides you with a real world valuation for your business and identifies opportunities to increase that value. Based upon your situation we will consider whether traditional business valuation methods such as an asset or market approach. Different business valuations can produce a range of suggestions.
However, most private companies will yield the truest value of their business when we utilize the Seller Discretionary Earnings (SDE) Approach. The SDE approach is optimal when seeking to align business value with a seller’s potential success and risk.
Using SDE (Seller Discretionary Earnings) to determine Business Value
The SDE income approach of business valuation is based on the actual cash which would be available to a Buyer. Buyers want to know how much money is actually available to them should they purchase the business. SDE valuations are generally based solely on upon tax return information. Buyers will use these historical SDE numbers and offset them with their projection for risk and opportunity.
Selling your Business?