Robert Hirsch from Freedom Factory discusses “How Does
Recasting My Financials Affect the Value of My Business”.
Listen to the podcast, watch the video, or read the
transcript below.
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Transcript of Podcast
Hey, Robert Hirsch from Freedom Factory here. Sometimes we get
so lost in our own nomenclature and vernacular and what we say in
our industry, terminology that we forget that everybody doesn’t
know it. And a question that keeps coming up is, what is seller’s
discretionary cash flow? And when you go to sell your business here
at Freedom Factory, one of the many things that we do is we recast
your financials from taxes where you’re playing a game of
minimization to sellers to discretionary cashflow, where you’re
playing a game of maximization.
And some people say, well, isn’t that two sets of books? Isn’t
that illegal? That’s not it at all. What we do is we take your tax
returns and we add in every allowable tax deduction that a new
seller might not have to do. Maybe they don’t have to take their
board meetings in Europe and maybe they don’t have to pay for their
Ferrari and their vehicles and you know, et cetera, et cetera, et
cetera.
There’s also a lot of non-cash expenses like depreciation and
amortization. That’s value that your business creates, and we want
to make sure before we apply the multiple that we apply the
multiple to the seller’s discretionary cash flow as opposed to the
EBIDTA. In some companies, this can make a difference. of 20, 30
sometimes even 50% and if you can get 50% more for your business,
why wouldn’t you do it?
At Freedom Factory, we specialize in helping sellers get the
biggest check of their life. If you need any help with any of this,
please give us a call. Thank you so much for watching. Please hit like and subscribe
and we’ll see you soon.
Contact Freedom Factory
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
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From http://freedomfactory.libsyn.com/how-does-recasting-my-financials-affect-the-value-of-my-business
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