If you are on this page then either you are looking at selling an existing business.
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If you are looking to sell business in dubai we can help you with it. You may have a business and is looking for an investor/partner to expand the business. We can reach out to our network of investors to help you sell your business.
It could be any type of business.
We can also do a valuation for your company/Business so that you get more value for your business when you are looking at selling them.
A professional Valuation will help you get a better price negotiating with the buyer.
We typically deal with selling of business with valuation higher than 2 million AED
We provide customized services.
We are professional business brokers in dubai who can help sell your business or help you buy a business in dubai or UAE.
If you are planning to sell your Business it is a good idea to get your Business valued by professionals.
A valuation based on just past cash flow is not substantial you need to get a Valuation of your done with some secondary research to
substantiate the Price you are asking for, Research shows that a properly researched valuation could get you 30% higher prices than one with out a report.
Read about why you need a valuation done at
Read more at Canadian Development Bank : What is your business worth
Benefits of using a broker to sell your business Read More: About why you should use a broker to buy a sell your Business
With out some one to guide you there is likely that you may make one of these when you are selling your business.
Read more: Mistakes you make when you sell your business.
If you want top dollar for your company, you must understand your EBITDA, why buyers care about it and how you can maximize it.Buyers are going to review your EBITDA as they value your business and make an offer.
1.The Value Of EBITDA
EBITDA, which is a line on your company’s financial statement, is an acronym for "earnings before interest, taxes, depreciation and amortization." Buyers focus on it because it can show a more accurate measure of a business’ financial health and overall value than cash profits alone.
Think about it: Multiple businesses in any given industry could have very different cash profits, and those profits don’t always reflect how a business is doing. One business might be actively growing and investing in the future — opening new offices, buying new vehicles, adding new capabilities. These investments drive a high growth rate, but at the same time, they skew the cash profit down significantly. Most of those investments would impact cash profit, but not EBITDA, because they are below that point on the financial statement.
If buyers valued a business solely on cash profit, the business that was actively investing in growth would have a lower valuation than the one that was not investing at all. However, by focusing on EBITDA, buyers can get some insight into another accurate and normalized indicator of what the business is worth on a comparable basis.
2.Types Of EBITDA
Normal EBITDA is relatively straightforward. It simply considers the numbers as they’re reported without making any adjustments to those numbers.
Adjusted EBITDA, on the other hand, adjusts for expenses that were incurred that won’t occur again or are stated in the wrong period. For example, let’s say you implemented a software program to automate processes that used to be done manually. As a result of this automation, you laid off some employees, but you also gave each of them a year’s salary as severance. That severance is a huge expense, and it lowers your EBITDA for the given period. However, you can raise your EBITDA to a normalized level by adding back those one-time severance expenses to your earnings.
Pro-forma EBITDA is another way to adjust EBITDA, but it’s unique in that it adjusts for things that will happen in the future. For example, perhaps you own a service company, and halfway through the year, you sign a large contract. While you only receive revenue from that project for six months this year, next year, you anticipate a full 12 months of revenue from it. You can adjust your EBITDA up accordingly and get buyer consideration for it as a result.
4. What Buyers Are Looking For
Generally speaking, in a healthy, growing business, adjusted EBITDA is higher than regular EBITDA, and pro-forma EBITDA is higher than both. When selling your business, aim to achieve a valuation based on the highest EBITDA possible. However, it can be complicated to capture every adjustment. Because every situation is unique, it may be a good idea to work with an accounting firm to determine your EBITDA.
While EBITDA is important to valuation when selling, it isn't the only metric people will use. As a buyer of more than 50 companies over the past 20 years, I can attest that EBITDA is one of many considerations. Buyers also look at revenue streams, customer concentration, how businesses are likely to perform during recessions and pandemics, etc. Certain sectors are impacted differently by economic cycles.
Financial metrics aside, the universe of buyers also looks at leadership, culture, growth rates of the industry in which you operate and more. Suffice it to say that there are multitude of factors that drive overall valuation, but EBITDA is as important as all the others — so it's important to be tuned in to what it is, how it works and, like the other factors, present it in the best light.
By understanding EBITDA and working to maximize it before you sell your business, you show the universe of buyers that you are a sophisticated seller who understands the true value of your business. That is how you get the highest valuation and, ultimately, the largest sale price.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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