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The Top 10 EBITDA Adjustments to Make Before Selling a Business
By: John Carvalho | President, Divestopedia Inc.
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Transitional Service Agreement
A transitional service agreement (TSA) is a type of agreement that is made between the buyer and seller of a company. In this arrangement, the seller agrees to provide certain services to the buyer at a predetermined price. These services can include accounting, IT and human resources and their...
Cash Sweep
A cash sweep is the use of a company's excess cash to pay outstanding debts ahead of the scheduled payment date instead of giving it to their investors or shareholders. This process helps a company to minimize risk and liability as well as pay its debt at a faster rate than what is expected or...
Negative Working Capital
Negative working capital is when a company's current liabilities exceed its current assets. This means that the liabilities that need to be paid within one year exceed the current assets that are monetizable over the same period. A buyer usually considers negative working capital in a target as...
The Reasonable Payback Period for an Investment in a Small- or Medium-sized Business
Inform yourself on what you can reasonably expect a payback period to be for your small- or medium-sized business.
The Top 10 EBITDA Adjustments to Make Before Selling a Business
The most common EBITDA adjustments you need to know when it comes time to sell your business.
By: John Carvalho | President, Divestopedia Inc.
Neutralizing the Due Diligence Grind
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
What is the impact of supplier concentration on business value?
Concentration in the acquisition world is a bad word. Businesses with high supplier concentration attract fewer buyers and this lowers the price. What’s too high? Having a supplier with 40% of your business is too high. Diversify if at all possible. When buyers look at a company for sale,...
What's the difference between growth capex, maintenance capex and internally financed capex?
There are generally two reasons companies spend money on capital expenditures (capex): to grow the business, and to maintain the business. Once a company determines it needs to make a capex investment it must decide how to pay for the capex, either using company cash or debt. Let’s explore each...
When is the best time of year to sell a business?
There are plenty of articles answering the question: how long does it take to sell a business? The typical response is that it takes about 8 to 12 months to appropriately prepare, plan and execute the sale of a mid-market business. There are also lots of articles that cover "when is the right time...
By: John Carvalho | President, Divestopedia Inc.
