earnings

This is a page from my book, “How I Sold My Business: A Personal Diary”

Sunday, September 25, 2005

It took a while to get my thinking where I wanted it to be, but I've finally finished creating my "business value" spreadsheets.

After really digging into the problem and trying to decide what makes sense, I finally decided to base everything on Marty's cash flow analysis approach, and look for a complete ROI for the business buyers in two years. I thought these terms were very reasonable, and they were essentially what we wanted before anyway.

This is a page from my book, “How I Sold My Business: A Personal Diary”

Tuesday, December 17, 2002

Late this afternoon the same group of people met at the CPA's office to listen to an offer for our company. The two financial men tell us they're willing to offer a total of $1.4M, mostly paid out from our earnings over a period of thirty-six months. Jack and I would have to stay at the company during that entire time, and they make it clear this is as high as they can go, this isn't a negotiation.

This is a page from my book, “How I Sold My Business: A Personal Diary”

Thursday, November 7, 2002

Two weeks have come and gone since my last entry, and I have to admit, it's been an anxious time. Besides pretending to be a normal small business owner, I've been coming home most nights and trying to digest these "How to buy or sell a business" books. I've tried to do my homework, working through several business valuation examples, but I have to say, I find the array of valuation formulas very confusing.