Today’s episode of the podcast, Robert Hirsch from Freedom Factory, discusses “How Does Recasting My Financials Affect the Value of My Business.” If you are planning to sell your business, you need to know how to maximize the value of your business. One of these is through identification and presentation of recast adjustments. Play the game of maximization the best way possible. Here at Freedom Factory, we’d love to help you get the biggest check of your life. Listen to the podcast or watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389990100
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.
Robert Hirsch from Freedom Factory talks about how recasting of your financials affects the value of your business. Freedom Factory is the world’s best business broker helping entrepreneurs sell their business for maximum value. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Today’s episode of the podcast, Robert Hirsch from Freedom Factory, discusses “Strategy to Sell My Business if I am in Tiger 21.” It is not surprising to know that the most undervalued asset class on the planet is small to mid-sizes businesses. SMBs come in all shapes and sizes. Selling it requires committed strategies and procedures. If you need help in strategic analysis, in referring your operating heads to driving towards the liquidity event, and in all other concerns, we’d love to help. As a board member or a business owner, Tiger 21 members are always treated with extra special love here at Freedom Factory. Listen to the podcast or watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389990100
Hey, it’s Robert from Freedom Factory, and if you’ve thought
about selling or buying a business and you’re a member of tiger 21
we’d love to help. As many of you know, I was the founder of Austin
Group One. We built a very vibrant chapter and we helped a lot of
our fellow tiger members buy and sell companies.
In my opinion, the most undervalued asset class on the planet
are small to mid midsize businesses. When I would be in a group and
we would have presentations come in every month, it was a different
guy in a suit, giving us a two 20 type structure, meaning 2%
management fee, 20% carry.
And it didn’t matter if it was. Oil or water or any type of
company. It was always the same structure, but the deals never
looked different. Now when you look at a small to mid-sized
business or a mid-market business, the deals look very different
and whether you’re looking to buy a business on cash flow or you’re
looking to make a strategic acquisition, we would love to help
you.
As a board member or a business owner, Tiger members are always
treated with extra special love here at Freedom Factory. If you
need help in strategic analysis, if you need help in referring your
operating heads to driving towards the liquidity event, we’d love
to help. So if you have questions on what the market looks like,
market conditions, buying or selling, just give us a call here at
Freedom Factory and you can call me directly. I’m Robert Hirsch and
I look forward to speaking with as soon.
