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Buying a small business? Here’s how to make sure you don’t overpay | Forbes
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Buying a small business? Here’s how to make sure you don’t 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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