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Ep 17: Koji Bratcher - SME Valuation Concepts [From An Expert]

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How to Calculate Network Capital for Your Business

I'm looking at a company now that the data book has just gone like increased at a higher rate than revenues been increasing year on year. So even though it looks like revenues going up, it looks like EBITDA is going up when you account for the change network and capital each year. At least at first glance, it was not really looking that attractive as a debt at first sight. But then digging into that data book, it seems like there's like intercompany stuff going on that needs to be taken out,. Very typical noise, I guess you find in some of these smaller businesses.

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