WE WORK JOINTLY WITH YOU TO PREPARE AN ACCURATE MAXIMUM VALUATION FOR YOUR BUSINESS.
Without a detailed valuation for your business you may not secured the maximum value of your business. We provide a combination of financial expertise and industry knowledge. Our experience + our expertise = your success.
Most experts agree that the starting point for valuing a business is to normalize or recast the business’s earnings to get a number called the Seller’s Discretionary Earnings (SDE). SDE is the pre-tax earnings of the business before non-cash expenses, owner’s compensation and financial gain, interest expense and income, or one-time expenses that aren’t expected to continue in the future.
Businesses owners report expenses on their tax returns with an eye fixed towards reducing their tax burden. This means they usually claim many deductions that lower the business’s income on the tax return. For this reason, using financial gain numbers from a business’s tax return can underestimate how much revenue the business really produces.
SDE offer you a far better idea of the business’s true profit potential by calculating the business’s income by adding back in expenses listed on the tax return that are not necessary to run the business. It also adds back in the owner’s salary and any one-time expenses that aren’t expected to recur in the future.
We start by developing comprehensive Seller’s Discretionary Earnings and business presentation materials and take a proactive approach to promoting and marketing the business. We actively engaging interested buyers through various marketing medium – our many contacts within our petrol station network, local businesses for sale advertising and social media. We carefully pre-qualify each potential buyer, screening them to make sure they are financially capable to purchase the business and requiring every buyer to sign our strict non disclosure agreement.
Once pre-qualify buyers are identified, our goal is to prepare three or more offers for every business to maximize the value of the business.
Once an offer is accepted by the seller we move forward to the due diligence process, we work together with the buyer and seller and their accountants to move the deal through as quick as possible. You benefit directly from our in-depth transactional negotiation that enable us to streamline the selling process.