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#215 Specialty Service Provider
Asking Price:
Down Payment:
Adj. Profit:
Adj. Profit Type:
Seller's Discretionary Earnings  

This well-known and well-established business provides consulting, project management, and project design support services to assist private, municipal, state, and federal agencies to acquire property and easements for the expansion of public infrastructure, to include roads, bridges, rail, electricity, water, sewer, energy, water storage, and urban renewal.  Current backlog is over $2.5 million.  There is no licensing required in the State of Colorado to provide this service; however, other states may require related licensing.  REAL ESTATE (valued at $550,000, subject to appraisal) AVAILABLE TO PURCHASE OR LEASE.  Contact Lynn Lage.  BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.