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February 2009 Archive | USABizMart

The following posts were made in February 2009. You may subscribe to the RSS feed for this tag to receive future updates relevant to the topic(s) of your interest.

Adult Day Care Centers - Cash Flow Matters

Last year I was asked to do a business evaluation and financial review of an Adult Day Care Center in Ventura County and render an opinion as to the profitability and viability for a client wanting to buy this business for the full asking price or for any other price. I was told before I began, that it was clearing $50,000 per month profit, and the asking price was $3 million. This article discusses nuances of due diligence and valuation issues of adult day care centers in California.

Liquidated Damages, Arbitration/Mediation Clauses

Liquidated Damages & Arbitration/Mediation Clauses in Purchase Contracts. In many purchase contracts today there are two special clauses that must be initialed individually to be included in the contract. If both the buyer and seller do not initial the clauses they are not part of the contract. In this article Willard Michlin, a due diligence consultant and specialists covers the different aspects of these terms.

Bottom Line: Computing Adjusted Net Income

Principals involved in business deals might get confused by the various ways used to refer to a company's profits or cash flow. Do acronyms such as EBITDA and terms like "adjusted annual net" describe the same thing? Perhaps some clarification is in order. This article explains the nuances and definitions of annual cash flow, adjusted net income, SDC - sellers discretionary cash, SDE - sellers discretionary earnings, and EBITA.

Buying A Bed And Breakfast Inn

The key motivator for those who want to own a bed and breakfast inn may be "lifestyle" considerations. But to make the right choice among properties offered, it's important to be prepared with some knowledge about the financial side of the business.