Robert Hirsch from Freedom Factory discusses "How Does Recasting My Financials Affect the Value of My Business". Listen to the podcast, watch the video http://freedomfactory.libsyn.com/how-does-recasting-my-financials-affect-the-value-of-my-business or read the transcript below.

Hey, Robert Hirsch from Freedom Factory here. Sometimes we get so lost in our own nomenclature and vernacular and what we say in our industry, terminology that we forget that everybody doesn't know it. And a concern that keeps turning up is, what is seller's discretionary cash flow? And when you go to sell your business here at Freedom Factory, one of the many things that we do is we modify your financials from taxes where you're playing a video game of reduction to sellers to discretionary cashflow, where you're playing a video game of maximization.

And some individuals say, well, isn't that two sets of books? Isn't that prohibited? That's not it at all. What we do is we take your income tax return and we include every permitted tax deduction that a new seller may not have to do. Possibly they do not have to take their board meetings in Europe and possibly they do not need to spend for their Ferrari and their vehicles and you know, etc.

There's also a lot of non-cash expenditures like devaluation and amortization. That's value that your business develops, and we wish to make certain before we use the numerous that we apply the multiple to the seller's discretionary cash flow as opposed to the EBIDTA. In some companies, this can make a difference. of 20, 30 often even 50% and if you can get 50% more for your company, why wouldn't you do it?

At Freedom Factory, we specialize in helping sellers get the most significant check of their life. If you require any aid with any of this, please give us a call. Thank you so much for seeing. Please hit like and subscribe and we'll see you soon.

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Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch.