business, Exit Planning

Cash Flow Normalization

Charles Kedra

Cash flow normalization is done with the intention of identifying Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). These differing measures are not interchangeable but are used by different classes of buyers for different categories of acquisition. Free cash flow is an important measure when calculating the value and price for any business. It is the amount theoretically available for servicing acquisition debt, working capital, return on investment for any cash outlay in the acquisition, and future expansion.

Exit Planning

Navigating Family Dynamics in Business Succession

Charles Kedra

Passing a family business to the next generation often brings emotional and relational challenges. Balancing personal relationships with professional responsibilities requires tact, clear communication, and often, external support. Common Challenges Conflicting Expectations: Different family members may have varying visions for the business’s future. Role Clarity: Undefined roles can lead to confusion and resentment. Emotional Attachments:… Continue reading Navigating Family Dynamics in Business Succession

Exit Planning

Top 3 Tips for Small Business Buyers

Charles Kedra

Buying a business can be a complicated process, especially for a first-time business owner. Entrepreneurship through acquisition has become increasingly popular. Here are some insights to assist buyers in negotiating a fair price. 1. Add-backs Seller add-backs for personal or discretionary spending is a murky area. Some add backs make sense and others do not. … Continue reading Top 3 Tips for Small Business Buyers

Exit Planning

The Importance of Due Diligence in M&A for SMEs

Charles Kedra

Due diligence is essential for successful mergers and acquisitions (M&A), especially for small and medium-sized enterprises (SMEs). It can mean the difference between transformative growth and costly mistakes. This guide highlights the importance of due diligence in SME M&A and how to navigate the process effectively. What is Due Diligence?Due diligence involves a comprehensive evaluation… Continue reading The Importance of Due Diligence in M&A for SMEs