SDE is essentially the business’ EBITDA plus the salary of the operator/manager (just one, not multiple salaries, Barnett emphasized). When you sell a small business, the selling price will be determined as a multiple of EBITDA if it’s a larger business or SDE if it’s a smaller one. The larger the business, the larger the multiple because larger businesses are generally less risky. When the EBITDA exceeds $500,000, SDE should become irrelevant. SDE is useful in smaller deals because the buyer needs to quantify the value of their labour as part of the investment they’re making.
Build an equity asset that is guaranteed to grow over time, never lose value and give you access to liquidity whenever you need it without having to qualify for credit- EVER. Learn more and sign up for a no-obligation consultation at https://www.NewBankingSolution.com
New Livestream guest- Kelly Nelson from TCI Business Capital
I’m happy to have Kelly join me on a live broadcast.
He has over a decade of experience helping companies with operating capital solutions to get money in the door more quickly.
Tune in and as we’ll be discussing factoring of accounts receivables.
What is it? How does it work? Are the things you’ve heard true? Who will it work for?
This is a ‘must see event’ for any business that waits to get paid from other businesses.
Be sure to join live so that you can ask questions, replay will be available.
We’ll be going live on Monday May 1, 2023 at 12 Noon Eastern Time and 1:00 PM Atlantic Time
See you there!
David C Barnett
Thanks to our sponsors:
Mark Willis of Lake Growth Financial Services. Build an equity asset that is guaranteed to grow over time, never lose value and give you access to liquidity whenever you need it without having to qualify for credit- EVER. Learn more and sign up for a no-obligation consultation at https://www.NewBankingSolution.com
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If your business is struggling to pay off high interest debts and you need help, check out this program from Bardwell Creative. https://courses.bardwellcreative.com/courses/business-debt-settlement-course?ref=6a30ba
If you enjoyed this show and want more great small business content, head over to https://www.SMBPodcastNetwork.com and find more great shows and conversations.
There’s no denying the benefits of being a business owner. It allows you to be your own boss, and have greater control over your time. And, you have the potential to make life-changing amounts of money.
But there are also risks involved, and buying the wrong business can be a costly mistake. You need to find a business that fits your unique skills and needs, which can be challenging.
Build an equity asset that is guaranteed to grow over time, never lose value and give you access to liquidity whenever you need it without having to qualify for credit- EVER. Learn more and sign up for a no-obligation consultation at https://www.NewBankingSolution.com
Does your
business MAX OUT it’s referral potential?
New
Livestream guest-> Stacey Brown Randall
I’m happy
to have Stacey join me on a live broadcast.
She’s made
all the common mistakes in business and now works to help make sure you’re
maximizing your referral opportunities via having the right systems.
Tune in
and as we’ll be discussing how you can start taking a systems approach to
generating referrals from happy clients.
This is a
‘must see event’ for anyone who owns a business or will one day, in particular
those who sell highly priced products or services.
Be sure to
join live so that you can ask questions, replay will be available.
We’ll be
going live Monday April, 24 2023 at 12 Noon Eastern Time and 1:00 Atlantic
Time.
See you
there!
David C
Barnett
Thanks to
our sponsors:
Mark
Willis of Lake Growth Financial Services. Build an
equity asset that is guaranteed to grow over time, never lose value and give
you access to liquidity whenever you need it without having to qualify for
credit- EVER. Learn more and sign up for a no-obligation consultation at https://www.NewBankingSolution.com
If you
enjoyed this show and want more great small business content, head over to https://www.SMBPodcastNetwork.com and find more great shows and conversations.
Buying a company is about discovering hidden jewels and potential dangers that can make or break a deal. I offer my knowledge of the complex process of acquiring a firm, including the tea leaves and surprises that may arise. I discuss the ultimate manifestation of a well-planned business. I will share useful recommendations for those exploring this approach based on my personal experience on both sides of the purchase process.
