In the retail hardware industry, most companies are valued two separate ways. First, is analyzing the current assets of the business such as inventory, accounts receivable, furniture and fixtures, and other assets. The second method is analyzing the usable cash flow for the company. For example, on a $1,000,000 of gross sales, the usable cash flow that business owner has to work with is possibly $80,000 to $100,000. The higher the usable cash flow, the more valuable the business. The higher the assets of the company, the more valuable the business.
Understanding what goes into a business valuation is important to any business owner that is thinking about retiring in the next 3 to 5 years.
Attendees will:
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Learn ideas on improving company profitability
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Review ideas on company add-backs
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Review tax savings at time of sale