Category: Earnings

Your Business is Failing – Close it or Sell it?

It’s hard to sell a small business, but it’s even more difficult to sell a failing small business. That said, the prospect of shutting down a small business is terrifying for most small business owners. Many of us mentally escape to the place called “it’s failing, but someone will buy it”.

What is a Value Gap and What Causes it?

What it is: A 60 second read on the biggest barrier to selling your business. Why it’s good: Simple, but hits all the highlights. Some business owners are understandably disappointed when they learn that their business is not as valuable as they thought.


Note: This one is a quick hit for those that struggle with EBITDA vs. SDE. Owner’s compensation is the key. SDE- Is an acronym for Seller’s Discretionary Earnings, and is a metric for determining the historical cash flow of a business. It is a recasting process that starts with the net profit of a business, from either the business tax return or the year-end income statement.

What Is My Small Business Worth? 3 Easy Steps

Grrrrrr.  Another great example of what drives us crazy. Wealth Pilgrim’s blog post What Is My Business Worth?  3 Easy Steps to Find Out. Well written, a great and straightforward overview of how to come up with your seller’s discretionary earnings . . . and then it goes off the rails: