Welcome to Business Valuation Fundamentals

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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 be able to do

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

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

Next Lesson

Course progress

0 of 21 lessons · 2h 35m

Certificate: Counts toward path
Course length: 2h 35m

Lessons

1. Introduction
- Welcome to Business Valuation Fundamentals9m
- Course Roadmap and Completion Requirements6m
- How to Get the Most from This Course6m
2. Core Principles
- Why Buy an Existing Business9m
- SDE vs EBITDA6m
- Defining Your Buy Box9m
- Knowledge Check4m
3. Deal Structure
- Asset Purchase vs Stock Purchase9m
- SBA 7(a) Financing Basics6m
- Seller Notes, Earnouts and Holdbacks9m
4. Financial Analysis
- Recasting Financial Statements9m
- Valuation Multiples6m
- Debt Service Coverage for Buyers9m
5. Risk Management
- Customer Concentration9m
- Owner Dependency6m
6. Real-World Examples
- Example: Valuing a Landscaping Company9m
- Example: Add-Backs That Did Not Survive Diligence6m
7. Case Study
- Case Study: HVAC Services Acquisition10m
- Debrief: Owner Dependency Is a Financial Variable6m
8. Final Assessment
- Final Assessment4m
- Applied Assignment8m

Instructor

Grace Chen, CPATransaction Advisory Partner