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? 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…
Buying a business – difference between buying assets vs shares? When you purchase shares of a company, you are acquiring all the liabilities of the company. This includes current, future, unrecorded and tax liabilities. All of the assets of the company go to the new owner of the business if they buy shares of the…
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…