Instructor:
Instructor David E. Coffman CPA/ABV/CFF, CVA Accredited & Certified in Business Valuation – ABV & CVA Has Valued Hundreds of Small Businesses President & CEO of:
Business Valuations & Strategies PC, Harrisburg, PA
Business Advisors Group PC, Seaside Park , NJ Email: dave@bus-val-strat.com
Part 5a: Calculating Cash Flow:
Part 5aCalculating Cash Flow
Calculating Cash Flow:
Calculating Cash Flow Start with Net Income Per Books
If a C (regular) corporation, add back income taxes
Add back
Non-cash expenses
Interest expense
Non-Cash Items :
Non-Cash Items Depreciation
Amortization
Interest Expense:
Interest Expense Valuation based on hypothetical sale
Most small businesses are sold as asset sales – free and clear of all debt
Existing debt not relevant
Buyers will have their own unique debt structure
Add back interest expense
Conclusion:
Conclusion Adjust net income
Calculate cash flow NEXT – Part 5b: Calculating Earning Capacity For More Information About:
Doing Your Own Business Valuation – http://do-your-own-valuation.com
Getting a Low-Cost Business Valuation – http://low-cost-bv.com