Business Valuations – Understanding Add Backs

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Business owners don’t always understand how business valuations are performed, and they often times don’t agree with the number. They first need to understand how their company’s cash flow is computed. It starts with determining the “Add Backs” — expenses that are added to the profits to derive EBITDA (earnings before interest, taxes, depreciation and amortization) or SDE (Sellers Discretionary Earnings – used for smaller businesses).

 

Let the experts at Gateway Mergers & Acquisitions help you understand and guide you through this process.

 

 

Give us a call today at 972-219-6961