Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses

Negotiating: Formulaic vs. Numerical Deal Value (EP.28)

Sep 23, 2019
Pros and cons of formulaic and numerical approaches to valuing a business in a sale, including the importance of recent performance and potential complications. Benefits and considerations of using formulaic versus fixed number approach in negotiations, emphasizing understanding adjustments and discussions related to post-cap X net owner earnings.
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1
Formulaic versus Numerical Deal Value: Understanding the Differences in Valuing a Business
00:00 • 3min
2
Formulaic vs. Numerical Approach in Negotiations
02:43 • 2min