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Cash In: EBITDA?
by Tom Crouser Spend any time researching business transactions and you will quickly run across the phrase, “EBITDA,” or “EBITA.” Well, what is it? EBITDA is “Earnings before Interest, Taxes, Depreciation and Amortization.” What’s so special about that? Theory is if you look at a business’ earnings and EXCLUDE these items, you may more accurately […]
Read More »Cash In: What’s the Business Worth?
When is it time to hang it up? Assuming we are mentally prepared and know what we need to retire, the question of what is the business worth comes into play as that is a major part of the assets of most business owners for many of us have little retirement assets outside of the business. […]
Read More »Cash In: How Much Will You Need to Retire?
By Tom Crouser When is it time to hang it up? Assuming we are mentally prepared and know what we will do after we sell or transition, we can tackle the next question: how much do we need? Unfortunately, passive income from interest and dividends today is less than it was so I strongly urge […]
Read More »Cash In: What’s Your Next Career?
By Tom Crouser When is it time to hang it up and get on with your next career? To cash in so to speak? If you’re like many, you’ve spent decades working in your business and made a good living overall. Now comes the complicated part: cashing in before we croak. But selling or transitioning […]
Read More »Cash In: Modernizations Effect on Value
A neighbor taught me a lesson about business modernization’s effect on value when their house went up for sale. They had to put in granite counter tops to make it more saleable. “Heck,” the wife said, “If we would have known we needed to install granite counter tops, we could have done it years ago […]
Read More »Compensating Workers in the Business Sale
In a business sale we often restrict our thinking and end up hurting our family. Cliff was thinking this way when he messaged, “Tom, I am 63 this summer and have owned the business almost 25 years. Had a record year last year and I am getting ready to start a transition. None of my kids […]
Read More »Cash In: Retirement Scare for Us
Was onsite in San Francisco all last week and one of our printers is ready to sell. Reminded me of the two things we need to know before do so. First, we need to know if we have enough cash to support what we are going to do next whether it’s retirement or something else. […]
Read More »Cash In: Part Equipment Plays in Business Value
What Part does Equipment Play in Values? I’ve mentioned business values based on earnings and ones based on parts as being the two basic approaches to valuing a business. Under the earnings approach, I have written about capitalization of earnings which is one of a number of earnings approaches. An astute reader wrote wanting to […]
Read More »Cash In: We Don’t Make Business Valuation Rule
Business valuation: get printers together and ask them how they value a business and you will find many methods. Problem is, as Zig Ziglar says, it’s “stinking thinking.” That’s because we don’t get to make the rules about how our businesses are valued. No, bankers make the rules or, more broadly, the financial community based on principles of finance. Why […]
Read More »Cash In: Fairness Doesn’t Mean Equal
Fairness in a business transition doesn’t mean to treat the children taking over the business equal. It means treat them fairly. Here are some thoughts on an internal transition. An Internal Business Transition in Nature: Cats and Kittens How Mother Nature handles “internal” transitions in nature is similar to the passing of a small business […]
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