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Return on Investment
Most small to medium businesses are sold using the capitalisation of earnings multiple. This means purchases are prepared to pay a multiple of the business earnings. When calculating the earnings of a business, it is necessary to remove any expenditure by the proprietor of the ...
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What Influences the Market Price of a Business?
Profit is generally the main direct impact on market value of any business. However, some non-financial factors play an import role in both the sale price of the business and also the attractiveness of the business to a potential buyer. Such factors may include: Great businesses ...
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A Good Business to Buy?
What factors make an attractive business investment? There are many considerations when purchasing a business. Some buyers consider only the financial aspects of a business, albeit to the detriment of the buying decision. Buyers should ensure both financial and non-financial needs are satisfied. Typical strengths of ...
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How does a Business Broker Qualify a Potential Buyer?
Business brokers always talk about “qualifying potential purchases”. But what does this actually mean? When selling your business your business broker might interview up to 50 interested parties – it’s really no different to a real estate agent selling a house. One of the main jobs ...
