Businesses are typically value based on their ability to generate profits in the future and the risk associated with these future earnings. Businesses that earn steady, predictable, and consistent income will generally be valued higher than businesses that do not....
Operating businesses are generally valued on a “going concern” basis, meaning that the business will continue to operate for the foreseeable future. When buying a “going concern” business, what you are actually purchasing is a stream of future cash flows earned by the...
As a business owner, it is always important to consider the factors that determine the value of your business. One element that can negatively affect your business value is carrying large amounts of excess inventory. Managing your inventory levels in your business is...
Throughout the majority of 2020, Canadian businesses faced unprecedented change. While much is still uncertain about what the the future will hold for businesses owners across the country, the International Business Brokers Association (IBBA) Market Pulse report for...
One of the most important stages of the business purchase process is the due diligence stage. In this stage. it is wise to have your lawyer, accountant, or advisors assist in analyzing all aspects of the business before moving forward with the purchase. Here are some...
Cash flow is a key determinant of business growth. Although you may have a profitable and growing business, the inability to come up with cash has the potential to result in bankruptcy! In fact, cash flow is one of the major causes of failure in small businesses....
