While most people are familiar with EBITDA, and business value is often quoted as a multiple of EBITDA, this is a metric that is prone to much abuse. The hows and whys are explained here. Is it time we scrapped the use of EBITDA in business valuations?
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BusinessExits submitted the following stories to BizSugar
Why it's time to scrap the use of EBITDA as a metric in valuing businesses
Posted by BusinessExits under FinanceFrom http://resources.theexitfirm.co.uk 2279 days ago
Motivate Business Brokers To Do A Better Job At A Lower Price
Posted by BusinessExits under FinanceFrom http://ukbusinessbrokers.com 2280 days ago
When selling a business a good business broker will guide you through everything you need to know and do. But one thing the broker won't tell you is that his own fees are not fixed, they are negotiable. We tell you how to get the best deal with your chosen business broker.
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Selling A Business: The Harsh Realities That They Don’t Tell You About
Posted by BusinessExits under ManagementFrom http://ukbusinessbrokers.com 2431 days ago
The hard truths about selling a business that business brokers and business transfers agents won't tell you. (That buyers will not give a damn for your valuation - and will come up with their own (substantially lower) valuation - is just one of them.)
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Why Business Brokers FAIL To Sell Most Of The Businesses They Take On
Posted by BusinessExits under ManagementFrom http://resources.theexitfirm.co.uk 2458 days ago
Business brokers (and other intermediaries who sell businesses) have a dismal success rate - most of the businesses they take on will never get sold. But averages are deceptive. Some business brokers have a 100% success rate and others less than 5%. Why the disparity?
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Inside Look At A Venture Capital Negotiation
Posted by BusinessExits under FinanceFrom http://resources.theexitfirm.co.uk 2467 days ago
TechCrunch sheds some light on how a VC deal is negotiated. The terms that come up during the discussion and the various valuation related issues that arise are often a great mystery to many entrepreneurs and founders.
In this article (they) look at perspectives from both sides of the table... Read More
In this article (they) look at perspectives from both sides of the table... Read More
GDPR – New EU regulation creates some great opportunities
Posted by BusinessExits under FinanceFrom http://resources.theexitfirm.co.uk 2533 days ago
The EU's new privacy regulation applies to every company selling to EU consumers (irrespective of where in the world the company is based). The penalties for non-compliance are very heavy on large businesses so many are divesting non-core divisions thus creating opportunities for small businesses t
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I Had An Offer To Buy My Business: How To Respond?
Posted by BusinessExits under StrategyFrom http://ukbusinessbrokers.com 2607 days ago
An offer to buy your business could be very exciting, but whether you like the number or not, you need to know exactly how to react to ensure you come out a winner! Make no mistake, this can be an extremely dangerous time for your business so please be very, very careful. Here are the top 10 thin
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How to sell a business today for a price based on its *future* worth
Posted by BusinessExits under Raising CapitalFrom http://www.businesszone.co.uk 2611 days ago
When raising finance, founders often give away a chunk of equity in exchange for the cash they need to grow the business. However, there's a better way! And it means you can get money now based not on how much your business is currently worth, but on how much it will be worth in the future.
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Low profit is no barrier to achieving a high price when you’re selling a business
Posted by BusinessExits under FinanceFrom http://www.bytestart.co.uk 2627 days ago
Business owners often assume that they can't get a high price for their business if they are not making a lot of profit. That's not necessarily the case. Here are 5 techniques you can use to ...
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Why You Can't Trust EBITDA As A Guide To The Value Of A Business
Posted by BusinessExits under FinanceFrom https://www.divestopedia.com 2633 days ago
EBITDA is a commonly used metric for the valuation of businesses. But EBITDA is easily manipulated ...and since the value of your business is often expressed as a multiple of EBITDA, it's easy to add substantial value to your business with just a bit of financial engineering.
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