Business valuation field notes.
Long-form, source-backed answers to the financial, operational, and transaction questions that appear after the first valuation formula. Every article includes a worked example, evidence matrix, owner playbook, failure analysis, and source notes.
Trailing Twelve Months vs. Tax Returns in a Business Valuation
How buyers reconcile a current trailing period with filed tax returns without automatically choosing the larger earnings number.
11-minute read · 2,217 words · Read the article →Seller earnings preparationBusiness Add-Backs Buyers Question—and How to Document Them
A buyer-oriented test for owner benefits, one-time expenses, related-party items, and missing costs before they reach diligence.
9-minute read · 1,881 words · Read the article →Transaction mechanicsWorking Capital Targets in a Small-Business Sale
Why receivables, inventory, payables, deposits, and deferred revenue can change proceeds even after buyer and seller agree on enterprise value.
9-minute read · 1,842 words · Read the article →Pre-sale financial diligenceQuality-of-Earnings Readiness for Small-Business Sellers
A practical seller-side readiness process for revenue, gross margin, payroll, add-backs, working capital, and recurring operating evidence.
9-minute read · 1,851 words · Read the article →Buyer diligence preparationHow Buyers Verify Small-Business Revenue
The evidence chain buyers use to reconcile invoices, operating systems, merchant processors, bank activity, financial statements, and tax returns.
9-minute read · 1,817 words · Read the article →Deal-structure educationHow Seller Financing Changes the Economics of a Business Sale
How a seller note can expand the buyer pool while changing cash at closing, credit risk, subordination, and the meaning of the headline price.
9-minute read · 1,851 words · Read the article →Cash-flow and asset diligenceDeferred Maintenance and Capital Expenditures in a Business Valuation
Why adding back depreciation does not eliminate worn equipment, catch-up repairs, replacement reserves, or the cash required to sustain earnings.
9-minute read · 1,812 words · Read the article →Offer comparison and seller educationLetter-of-Intent Price Traps for Business Sellers
The terms that can make an attractive headline price deliver less cash, more risk, or a different transaction than the seller expected.
9-minute read · 1,827 words · Read the article →Earnings normalizationHow Seasonality Affects a Small-Business Valuation
How to distinguish normal seasonal patterns from growth, decline, weather, backlog timing, and temporary working-capital pressure.
9-minute read · 1,807 words · Read the article →Project-business valuationBacklog Quality: When Future Work Supports Business Value
A framework for testing awarded work, margin-to-complete, customer concentration, cancellation rights, capacity, and working-capital demands.
9-minute read · 1,823 words · Read the article →