Normalizing Earnings Tells You How Profitable a Company Really Is

We show you the real numbers

Normalizing earnings allows one to both compare earning both year over year and against other companies. There are several terms that we use to represent this normalized earnings number. They included SDE (Seller Discretionary Earnings), SDI (Seller Discretionary Income), Adjusted EBITDA, Adjusted Net, or (my favorite) Owner Benefit. While conceptional simple, […]

An Arranged Marriage is Sometimes What a Merger Feels Like

Arranged Marriage

By JIM CUMBEE Even at “hello” I could feel the tension. Four of them, one of me. I was feeling some heat as they stared at me, looking for answers. There were two representatives from each company. Their desire to merge was borne from a conversation between the two owners at a […]

3 Cash-Flow Challenges and How to Handle Them

Business Decisions & Finance

Published by “Kabbage Inc.” Small-business owners in nearly every field struggle with cash-flow, particularly in the early stages of their business. In fact, the majority of failed businesses—nearly 60%—say that all or most of their failure was due to cash-flow issues, surveys show. Here are three cash-flow metrics that encapsulate a few […]

The Best Business Decisions I’ve Ever Made for My Small Business

Running a Business

Alexander Huls (Published by the The Hartford)   Every small business has major turning points: Moments where one or two key decisions were made that set the business on a path to success. But when you’re just starting out, it can be hard to determine which choices will make or break […]

Valuing a Small Business in its Startup Phase

Business Valuation

Repost from BizBySell Many of the analyses and valuation techniques most business appraisers rely on to value small businesses use an analysis of historical financial statements to: Identify potential trends Compare the subject to the industry average Find any required normalization adjustments The question then becomes, how does one appraise or […]

Economic Brief – A Field Guide to Recessions (updated 10.22.19)

Businessman pointing at tablet computer held by his business partner

Chief Economist Scott Brown discusses current economic conditions. Definitions and Determinations: The National Bureau of Economic Research (NBER) defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” […]

“Everything will be okay in the end, If it is not yet okay, then it is not yet the end.”

Winners n Losers

By: Milton Gene Friedman CPA, MS-Taxation, CFE, CFF, CIRA is the President of Friedman Associates Due Diligence generally consists of representing prospective buyers of privately owned businesses and Professional practices. Clearly, most sellers have every incentive possible to exaggerate the successes of the business that they are trying to sell. Thus, […]