Deciphering a Business Valuation may take an experienced analyst. General Definition: {Current assets – Current Liabilities = Net Working Capital} In most cases, the valuation of a business does not include the net working capital of the business at the time of the valuation. Working capital is often excluded from valuations so that business values can be compared to other similar businesses without the need to adjust for working capital. If 2 businesses are identical except one has...

4 Ways to Eliminate Customer Concentration and Build Confidence with Prospective Buyers It’s value suicide. A company with more than 15 percent of its revenue with one customer is at high risk of having the rug pulled out from under them. As the owner of such company, it’s going to add difficulty when it comes time to sell. And for any potential buyer, the risk is higher unless you can prove growth potential by finding more like customers, and fast. If you are preparing your business for...

You’ve poured your time, energy, and resources into building your business. But when it comes time to sell, seek investors, or plan for...