A business owner I spoke with recently has been trying to sell his business for a year with no luck. He didn't know how to value his type of business, and doesn't have a current P&L or balance sheet. His tax returns show a loss, yet his business did $1,000,000 in sales last year. No wonder it hasn't sold.
A legitimate business expense for tax purposes can be counted as cash flow when valuing a business. After recasting his numbers, we showed an $80,000/yr profit for the business. It has been SBA approved, and should sell quickly. Keep in mind the importance of recasting financials. For more info on recasting, contact me at ben@vrpro.com
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