This book provides expert strategies for setting the sale or purchase price of a profiable, closely held company in today's volatile marketplace. With seasoned business broker Paul Baron as your guide, you will learn everything you need to know about pricing, including:
- Techniques used by 23 of the most successful buyers in America
- Pros and cons of leveraged buyout pricing strategies
- Reasons some companies do not sell
- Traditional or IRS methods of pricing a business---and why you should avoid them
- The different types of buyers and sellers
- Many formulas fpr pricing businesses as diverse as pizzerias and insurance fims
- Add-back adjustments and how they work
- Discounted cash flow techniques and how they work
- The seven kinds of prices, and how to determine determine which are most important to you
- And much more, explained clearly and with useful ewamples
1. About Buyers and Sellers
2. About Value and Pricing
3. Traditional but Unacceptable Methods of Pricing a Business
4. Capital Budgeting Techniques
5. Normalized EBIT Earnings and Earn-Outs
6. Normalized EBIT Pricing of Type A and Type B Companies
7. About Negotiation
8. Why Companies Do Not Sell and Why Some Deals Fall Apart