Examples : Owner's salary (above or below market rate), personal vehicle leases, one-time legal fees, or non-recurring repairs. 2. Choose a Valuation Approach
Buying a small business requires a valuation that balances hard financial data with intangible risk factors. Most small businesses trade for their annual earnings, though high-growth or asset-heavy industries can reach significantly higher multiples. 1. Gather & Normalize Financials buying a small business valuation
Before applying any valuation method, you must verify at least of financial history to ensure the records are clean and representative of the business's true performance. Examples : Owner's salary (above or below market