Understanding Business Earnings

Understanding Business Earnings Understanding that business profits can be represented in different ways is important when analysising  a business for sale. Some of the ways to represent earnings are; Net profit after tax (“NPAT”), Earnings before interest and tax (“EBIT”) Earnings before interest, tax, depreciation and amortisation (“EBITDA”) Proprietors earnings before interest and tax(“PEBIT”) Proprietors…

Should I buy a franchise?

Should I buy a franchise? Franchises may or may not be more profitable than a regular business. It depends on many factors including, the management skills of the owner, the location, the product being sold and the brand recognition, if you are appealing to a mass market or just local people. Franchises may be more…

Selling to a competitor

Selling to a competitor Are you having troubles trying to sell your business? Do you need to market to a competitor? How do you give information to a competitor without revealing too much information about yourself or your business? You never should reveal your customer list at the beginning of your negotiations. Purchasers can use…