Eric Van Dam

Maybe business owners are running through personal expenses that may not exist going forward. But it's really important to understand what is your EBITDA because that is the baseline for how businesses are valued at the end of the day. And so certain companies may look to be growing. Are you growing your business profitably and really kind of expanding your EBITDA and your earnings power?

Maybe business owners are running through personal expenses that may not exist going forward. But it's really important to understand what is your EBITDA because that is the baseline for how businesses are valued at the end of the day. And so certain companies may look to be growing. Are you growing your business profitably and really kind of expanding your EBITDA and your earnings power?

Because companies are valued based on a multiple of that EBITDA. So I'd probably start there. and really encourage your listeners and your audience here to really understand their numbers and understand that EBITDA because it isn't, you know, that isn't a terminology that when you look at your income statement from your accountant, you don't see a line item that says EBITDA.

Because companies are valued based on a multiple of that EBITDA. So I'd probably start there. and really encourage your listeners and your audience here to really understand their numbers and understand that EBITDA because it isn't, you know, that isn't a terminology that when you look at your income statement from your accountant, you don't see a line item that says EBITDA.

You have to calculate it and really kind of understand that. But that's the baseline that businesses are valued off of.

You have to calculate it and really kind of understand that. But that's the baseline that businesses are valued off of.

I think the sooner the better that you can do it because really any investor or any buyer, if it's a strategic buyer, they're going to be using accrual-based accounting. And so if you're having reviewed financial statements or audited financial statements, they're even going to be wanting to see you on accrual-based accounting.

I think the sooner the better that you can do it because really any investor or any buyer, if it's a strategic buyer, they're going to be using accrual-based accounting. And so if you're having reviewed financial statements or audited financial statements, they're even going to be wanting to see you on accrual-based accounting.

Because ultimately, that is the best representation of where your true earnings of the business are. Because if you're prepaying expenses or you're not properly accruing for bonuses that are going to hit in December, you could artificially inflate or maybe have an earnings number that's too low at the end of the day.

Because ultimately, that is the best representation of where your true earnings of the business are. Because if you're prepaying expenses or you're not properly accruing for bonuses that are going to hit in December, you could artificially inflate or maybe have an earnings number that's too low at the end of the day.

So the sooner that you can get to accrual-based accounting, the better because it's the best representation for you to track your business and really kind of understand your numbers.

So the sooner that you can get to accrual-based accounting, the better because it's the best representation for you to track your business and really kind of understand your numbers.

Yeah, absolutely. So a SIP stands for confidential information presentation. So if we were selling somebody's business, we put this document together that will ultimately go to buyers once that they've executed a confidentiality agreement. And this document really serves as the baseline for why somebody should pay a great valuation for their business.

Yeah, absolutely. So a SIP stands for confidential information presentation. So if we were selling somebody's business, we put this document together that will ultimately go to buyers once that they've executed a confidentiality agreement. And this document really serves as the baseline for why somebody should pay a great valuation for their business.

And it goes into detail around the investment highlights, being a market leader, having sophisticated digital marketing strategies, being an employer of choice, being an acquirer of choice, kind of dominating your market. It goes into the growth strategy of the business.

And it goes into detail around the investment highlights, being a market leader, having sophisticated digital marketing strategies, being an employer of choice, being an acquirer of choice, kind of dominating your market. It goes into the growth strategy of the business.

So as important as your historical financials are, it's even more important, what are you going to do the next five years and how are you going to get to your goals? And then going through the business overview, the history, service offering, customers and markets, employees, management team, as well as the financial side of the business.

So as important as your historical financials are, it's even more important, what are you going to do the next five years and how are you going to get to your goals? And then going through the business overview, the history, service offering, customers and markets, employees, management team, as well as the financial side of the business.

And at the end of the day, it's, you know, that document is probably somewhere between 50, 60, 70 pages long, if not longer, but that serves as, you know, for the investors, their first impression of the business to submit what we would refer to as a first round bid or an indication of interest to kind of get into the next round. So we may contact a hundred different buyers,

And at the end of the day, it's, you know, that document is probably somewhere between 50, 60, 70 pages long, if not longer, but that serves as, you know, for the investors, their first impression of the business to submit what we would refer to as a first round bid or an indication of interest to kind of get into the next round. So we may contact a hundred different buyers,