The Real Number you need to know.
The real number versus the tax number.
Most owners receive financial statements from their CPA which reflects the net income and balance sheet from tax standpoint. But does this number reflect the true cash flow that could be passed to a buyer? Often not. The “real number” is a recasted number reflecting addbacks, discretionary expenses, normalized expenses, and one-time non-recurring expenses. Often this number is much larger that the tax number. And this is the number used to value your business. Do you know your “real” number and are you receiving regular feedback on what it is?
Change the outcome. –Chris
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About our author:
Chris Snider, CEPA, is the award-winning author of Walking to Destiny: 11 Actions an Owner Must Take to Rapidly Grow Value & Unlock Wealth, a business strategy book about the Value Acceleration Methodology(TM) written for business owners and the advisors who serve them. Snider is a professional keynote speaker and content provider to the middle market business community, trade & industry associations, and professional education organizations.
For his written work and his contributions to the industry, Snider has been awarded recent honors that include 2016 NACVA Industry Titan Architect and 2016 AM&AA Thought Leader of the Year.
Walking to Destiny is a five-star rated book that truly empowers owners with the knowledge and path to effectively positioning their business and themselves for exit options down the road, sure, but perhaps more importantly, rapid business growth today.
Snider is the Managing Partner of Snider Premier Growth, the CEO/President of Exit Planning Institute, the Founder of ThinkTank Publishing House, and the contributing author of SniderValueIndex.com. Chris is a family business owner, owning stakes in 8 lower middle market companies with his son, Scott.
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