Rich and Co.

M and A Advice: You Need a Valuation and EBITDA is Not Everything

leave a comment »

In our experience with selling and helping to buy retirement and financial services businesses and practices, we have found few businesses have a realistic valuation of their businesses.  This creates a real disadvantage in negotiations and losses in the transaction for both parties.  It helps then to start with a valuation done by someone familiar with the industry and who has comparable figures.

While multiples of some standard accounting figure is common.  Typically, marketing, growth and sales assets of the firms are not counted.  For example — a network or “rolodex’/SaleForce data base of sources of new clients and pre-qualified sales referrals.  These kinds of resources will not show-up on accounting statements but may be the most valuable resources for ongoing growth and future revenues.

We will help you acquire the most realistic valuation.



Written by Rich and Co.

September 16, 2014 at 5:41 pm

Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: