Very very Small Businesses. The Assets + SDE Valuation Method

How can Zafer value his small grocery store?
Is it as simple as adding up the contents and then adding some goodwill value?
What should this goodwill amount be?
We dive in to one method which attempts to do this… Assets + SDE.
Watch it here: • Very very Small Busine...
Cheers
See you over on KZbin
David C Barnett
Do Business with David using these incredible internet links...
David's Blog where you can find hundreds of free videos and articles, www.DavidCBarn...
Join David's email list so you never miss any new videos or important information or insights, www.DavidCBarn...
Book a call with David and let him help you with your project, www.CallDavidB...
Learn how to buy a successful and profitable business in a risk-controlled way www.BusinessBu...
Get help selling your business, www.HowToSellM...
Get better organized in your business, www.EasySmallB...
Learn to make better cash flow forecasts and write incredibly effective business plans from scratch!, www.BizPlanSch...
Learn to build an equity asset with insurance! visit www.NewBanking...

[@MarkSMueller]

Thanks for this video David, its exactly what I need for a few of the businesses I'm working with right now.. Small, low SDE and higher replaceable FF&E Value. You reference the software you use to perform valuations...I've got your Business Buyer Advantage Analysis Template (great stuff). Do you have access to the valuation software you use?

[@DavidCBarnett]

I use the Financial Analysis Template from Pacific Mergers and Acquisitions. Google them, you'll find it.

[@charlesjohnson7222]

Would you include a daycare where I’m buying a job with the real estate included and ff&e would be discounted or negative value? How might you approach an owner of 20+ years with unrealistic expectations of goodwill?

[@DavidCBarnett]

Sometimes you have to show them the cash flow forecast so they can see how you simply can't afford to pay any more. They know, but they don't want to know.

[@azulmarineintl.5346]

Hi Alan here, good explanation. I spoke to a lawyer recently on LOI's/IOI's and noticed one of the lenders that I now follow on twitter, mentioned using an IOI before and LOI if no asking price is published in the sale. thoughts ? Thanks A

[@DavidCBarnett]

I always used an 'offer to purchase' which was a simple, two page form-style of document that outlined the deal subject to financing, due-diligence, etc. I've heard people describe the IOI and it seems like they're doing the same strategy that I've always advocated. You don't want to involve attorneys in expensive documents until you know you're at least on the same page as the seller.

[@azulmarineintl.5346]

@@DavidCBarnett offer to purchase sounds perfect. Thanks again. Always learning new things with your good content

[@abhinaveditorrr]

Awesome stuff, By any chance Can I help you with engaging video edits?

[@DavidCBarnett]

No. I'm not really trying to attract people who are looking to be entertained. Thanks though and good luck with your business.

[@stewartdegner260]

Thank you. Your talk was pretty good, BUT you may want to state the the meaning of your multy leter statements' At the start of your talk.

[@DavidCBarnett]

Multi-letter statements? You mean SDE, EBITDA, etc? Just spend some time on this channel and go through the old videos.