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Just Elementary, Inc. » Entries tagged with "Profit"

What is Your Business Worth? Different Factors Affecting Business Valuations

What is Your Business Worth? Different Factors Affecting Business Valuations

There are a lot of commonly used profit multipliers to determine the value of a business.  You may have heard of 2 times the profit, or three times the profit, but do they apply to your business? The short answer is no, a Business Valuation is affected by non discrete factors, including the following. The reason for this is that there are too many variables in the phrase ‘2 times multiplier of the profit.’ Effect of Industry Type … Read entire article »

Filed under: Business Valuation

Navigating Write Offs and Addbacks in the Process of Buying and Selling a Business

Navigating Write Offs and Addbacks in the Process of Buying and Selling a Business

What impact on the bottom line profit and overall value of the business do write off have? One of the commonly cited perks of owning a business is the ability to write off expenses and reduce the tax bill. Write offs are fairly common for business owners, but they have an adverse affect on the bottom line profit of a business, which affects the overall Business Valuation for the business.  How does this happen?  Well, if  a … Read entire article »

Filed under: Business Valuation

Factors that Effect the Value of a Business

Factors that Effect the Value of a Business

Factors Affecting the Value of a Business Lease & Occupancy Cost In the cases of businesses operating on a lease, the lease terms are key to affecting the contribution of value to the business.  For retail business that are not footloose, a long term is key to positive value.  For example, with a coin laundry, the lease needs to be typically, 20 years or more in length.  Long term leases are important with most retail businesses.  In … Read entire article »

Filed under: Business Tips, Business Valuation, Uncategorized

Gilmore Bank Mixer 10-14-10

Some interesting nuggets came from the Gilmore Bank Mixer held at their branch location at the Grove/Farmer’s Market in Los Angeles.  Number one, for those of you who don’t know, Gilmore banks owns the Real Estate that the Grove is developed upon.  It is on a long term land lease to Rick Caruso’s company.  Number two, Jim Roby and Cyrus Greene, both Gilmore associates involved in commercial lending, noted that of the applicants that they are reviewing for SBA loans, they have noticed an increase in 2010 revenues and profits over 2009 figures.  Of course, this doesn’t mean all companies are experiencing a better 2010 over 2009, just that struggling companies may not bother to even apply for a virtually guaranteed no.  Here is the one nugget to really take … Read entire article »

Filed under: Business Tips, SBA