What is My Business Worth - How Valuations are Made

About this episode

The episode discusses how business valuations are determined and the factors influencing buyer and seller perceptions of value.

What is a business really worth, and why do buyers and sellers so often see that number differently? In this episode of Transaction Talk, Jennifer Fox and Eric Sigman sit down with Louis Pereira of Merrimack Business Appraisers to unpack how business valuations are actually determined and why preparation plays such a major role in maximizing value. Drawing on decades of experience in business brokerage, mergers and acquisitions, and valuation work, Louis explains the financial metrics buyers focus on, including EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), seller's discretionary earnings (SDE), cash flow, and valuation multiples. The conversation also explores why similar businesses can sell for very different prices, the common mistakes owners make when estimating value, and why some buyers are willing to pay more than others. Along the way, Louis shares practical advice on clean financials, long-term planning, and positioning a business for a stronger sale. Tune in for a practical discussion on what really drives value in today's market! Key Points From This Episode: Introducing today's guest, Louis Pereira of Merrimack Business Appraisers. Discover…

People in this episode

Hosts: Jennifer Fox, Eric Sigman

Guest: Louis Pereira

Topics covered

• business valuation
• EBITDA
• SDE
• cash flow
• business sale preparation
• buyer-seller dynamics

Keywords

• business worth
• valuation metrics
• financial preparation
• selling a business
• valuation multiples

Mentioned in this episode

Organizations: Merrimack Business Appraisers

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