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Posts tagged 'due diligence' | USABizMart

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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.

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.

Due Diligence Checklist - Items Needed

One procedure that often causes deal-threatening delays is due diligence. Rather than buyer and seller taking time to negotiate what should be included, or sellers not being prepared with needed materials because they don't know what buyers want to see, it's best if both are prepared with a checklist of 15 key due diligence items, so that this part of the process doesn't slow down the deal. Here's what goes on that checklist.