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𝗦𝘁𝗿𝗲𝗲𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗡𝗲𝗲𝗱𝘀 𝗧𝗵𝗶𝘀! 𝗔 𝗚𝘂𝗶𝗱𝗲 𝗧𝗼 𝗦𝗺𝗮𝗹𝗹 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 I learned the value of small business in the streets of Jozi Where the business was worth how many gangs wanted it's stock and how effective your anti hi-jack policy was! Finding abbreviations such as SDCF and EBITDA was the largest learning curve when I embarked on the road of formalised business practice. 𝗧𝗥𝗨𝗧𝗛 𝗕𝗘 𝗧𝗢𝗟𝗗... Most self made (Micro & Small) businesses can't use EBITDA! So let's explore the market value based on what a buyer will get when they buy the business. 𝗦𝗗𝗖𝗙 - Sellers - Discretionary - Cash - Flow (The valuation metric for Mico & Small Businesses in South Africa 🇿🇦) -> 𝙁𝙤𝙧 𝙎𝙚𝙡𝙡𝙚𝙧𝙨 𝙤𝙛 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨 SDCF is a valuable insight to ensure that the selling price is realistic and within market value. -> 𝙁𝙤𝙧 𝘽𝙪𝙮𝙚𝙧𝙨 𝙤𝙛 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨 Calculations of SDCF assist in calculating the return of the business purchase and is the basis of the investment's ROI (Return On Investment) -> 𝙁𝙤𝙧 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝘽𝙧𝙤𝙠𝙚𝙧𝙨 To calculate SDCF is a crucial part of listing, marketing, and negotiating a mutually beneficial transaction & transition. ‐-------------------------‐-------------------------------------- I've summarized the complexities to bring you a comprehensive guide for beginners. ‐‐--------------‐--------------------------------------------- 𝙉𝙚𝙚𝙙 𝙩𝙤 𝙠𝙣𝙤𝙬 𝙢𝙤𝙧𝙚? 👣 Follow me to keep in touch. Alistair Plint 🔔 AND ♻️ Pass this post around to those needing to understand the topic better. ‐----------------------------------------------------------------- #businessbroker #sellmybusiness #businessvalue