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Buying a small business? Here’s how to make sure you don‚Äôt overpay | Forbes
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Buying a small business? Here’s how to make sure you don‚Äôt overpay | Forbes

There are many considerations you must cover before buying a small business. It is recommended to have a business appraiser since business valuations can get quite complicated to help represent you. Calculating the fair market valuation for a small business with an employee needs to cover the sellers’¬†discretionary earnings (SDE) and factoring in the market multiples for businesses within the same industry and size. With all this in mind, this can be a helpful foundation for you to prevent overpaying a business you are looking to purchase.

Source: https://www.forbes.com/sites/theyec/2020/09/03/buying-a-small-business-heres-how-to-make-sure-you-dont-overpay/#2cf4577b52b3

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