How We Determine Business Value

Last time, we shared how we begin analyzing a new business opportunity—starting with the financials and getting the strategy in place.

Now, we're digging into the numbers from the last few years, looking for trends, and making sure this is a viable long-term investment. By adding back depreciation and discretionary earnings, we get a true picture of the owner’s take-home profit.

From there, we calculate the business's worth using a multiple. It's a crucial part of ensuring every deal we make is built on solid numbers.

Curious about what’s next? Keep following!