What's Your Business Worth?

While there are many areas that a buyer will evaluate, cash flow and risk are two important factors in buying a business. Other factors include market stability, on going economic situations and location of the business.

A buyer typically purchases a business for either future income or to consolidate a certain market. Financials can be presented in many ways, typically either as Free Cash Flow, EBIT, EBITDA, Enterprise Value or a hybrid Enterprise Value. EBIT is the most common basis for establishing a selling price.

All businesses come with a degree of risk. Risk may be present in customer concentration, reliance on vendor relationships, macro economic trends, competitive forces, key employees, legal exposures and more.


* Exclusions in Canada until March 2025; Any dealership for automobile, motorcycles, leisure or recreational, trucking, agricultural, marine or heavy industry vehicles and equipment, in each case whether new or used, and alone or in any combination thereof, and whether through bricks and mortar or internet or other presence (individually or as a group).