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Business ValuationMembers Only

Business Valuation Fundamentals

SDE, EBITDA, add-backs and multiples — how small businesses are really priced.

Grace Chen, CPAGrace Chen, CPATransaction Advisory PartnerIntermediate 21 lessons 2h 35m 4.3 (6)
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Members-only course. This course is included with club membership.

About this course

Learn the valuation methods used in small business transactions. Recast financial statements, scrutinize add-backs, apply market multiples and cross-check value against debt capacity and buyer return requirements.

What you will learn

  • Recast financials to SDE and adjusted EBITDA
  • Evaluate the legitimacy of add-backs
  • Apply market multiples and DCF cross-checks
  • Test price against debt service coverage

Curriculum

8 modules · 21 lessons · 2h 35m

  1. Module 1

    Introduction

    3 lessons

  2. Module 2

    Core Principles

    4 lessons
    • Why Buy an Existing BusinessVideo · 9 min
    • SDE vs EBITDAWritten lesson · 6 min
    • Defining Your Buy BoxVideo · 9 min
    • Knowledge CheckQuiz · 4 min

  3. Module 3

    Deal Structure

    3 lessons
    • Asset Purchase vs Stock PurchaseVideo · 9 min
    • SBA 7(a) Financing BasicsWritten lesson · 6 min
    • Seller Notes, Earnouts and HoldbacksVideo · 9 min

  4. Module 4

    Financial Analysis

    3 lessons
    • Recasting Financial StatementsVideo · 9 min
    • Valuation MultiplesWritten lesson · 6 min
    • Debt Service Coverage for BuyersVideo · 9 min

  5. Module 5

    Risk Management

    2 lessons
    • Customer ConcentrationVideo · 9 min
    • Owner DependencyWritten lesson · 6 min

  6. Module 6

    Real-World Examples

    2 lessons
    • Example: Valuing a Landscaping CompanyVideo · 9 min
    • Example: Add-Backs That Did Not Survive DiligenceWritten lesson · 6 min

  7. Module 7

    Case Study

    2 lessons
    • Case Study: HVAC Services AcquisitionCase study · 10 min
    • Debrief: Owner Dependency Is a Financial VariableWritten lesson · 6 min

  8. Module 8

    Final Assessment

    2 lessons
    • Final AssessmentQuiz · 4 min
    • Applied AssignmentAssignment · 8 min

Your instructor

Grace Chen, CPA

Grace Chen, CPA

Transaction Advisory Partner

Grace has led quality-of-earnings reviews on more than 150 acquisitions. She shows buyers how to separate real earnings from adjustments and find risk before it finds them.

Business ValuationDue DiligenceQuality of Earnings
All courses by Grace

Downloads included

  • Business Valuation WorksheetXLSX · included with the course

Member reviews

  • “Professional, concise and free of hype. Recommended for any member.”

    IWImani Whitaker · Jul 31, 2026

  • “Exactly the level of depth I was looking for. The downloadable tools are excellent.”

    WIWarren Irving · Jul 9, 2026

  • “Very well organized. The case study was the highlight.”

    ARAndrea Ramirez · May 26, 2026

  • “Professional, concise and free of hype. Recommended for any member.”

    AMAndrea Mercer · Jan 22, 2026