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Financial Statements Last 3-5 years of balance sheets Last 3-5 years of income statements Cash flow statements Tax returns Market Information Competitor list Barriers to entry Customer and supplier information Business Operations Type of income streams Profit margins Business stability metrics Human Resources and Management Employee skill set Management quality Employee benefits and costs Valuation…

When it comes to business valuation, two metrics often stand out: SDE (Seller’s Discretionary Earnings) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Both are crucial in understanding a company’s financial health, but they cater to different business sizes and have distinct nuances. What are SDE and EBITDA? SDE (Seller’s Discretionary Earnings): Primarily used…

In the world of mergers and acquisitions, an unsolicited offer can be a game-changer. It’s an unexpected proposition from an individual, investor, or company to purchase another company that wasn’t actively seeking a buyer. While it can be a golden opportunity, it also presents a myriad of challenges that require strategic navigation. What is an…

In the realm of business valuation and financial analysis, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely recognized metric. However, when it comes to getting a clearer understanding of a company’s true earnings, “adjusted EBITDA” comes into play. This adjustment process involves adding back certain expenses to the standard EBITDA to provide…

Introduction to Quality of Earnings Analysis Understanding the financial health of a business is crucial for both buyers and sellers in the M&A space. One of the key metrics that offer deep insights into a company’s financial well-being is the Quality of Earnings (QoE). This article aims to demystify the concept of Quality of Earnings…