As I Think About Selling, Are There Key Numbers I Should Focus On?

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Q: As I think about selling, are there key numbers I should focus on?

JT says: Absolutely. Here are 4 numbers most consider essential for the best decisions:

  1. Adjusted EBITDA: THE number driving value. Keeping sales, AR’s & margins healthy is essential.
  2. Business Value: Largely determined by valuation methods and an array of industry multiples, all stemming from your Adj. EBITDA.
  3. Pre-Tax Yield: This is the Business Value plus balance sheet adjustments: Cash, AR’s, Working Capital, Liabilities and closing related expenses.
  4. Post-Tax Yield: Commonly known as ‘walk-away’ money. When it’s all said and done (and taxes paid), it’s what you get to walk-away with.

These numbers are not difficult to obtain. Once received, you’re well on your way to a successful plan.

Get Answers + Get Prepared = Get Retired


Have a question for JT? Don’t worry, all questions will remain anonymous! You can email JT at jt@exitstrategies360.com.

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JT Kraai

As CEO and Founder of Exit Strategies 360, JT takes extreme pride in helping business owners prepare and navigate the business sales process.  As an M&A Advisor, Broker and Consultant for 20+ years, he has structured hundreds of transactions for virtually any scenario, keenly understanding the needs of both buyers and sellers. 

JT indicates, “Most business owners are unaware of their options when it comes to preparing and selling their business.  These options can increase cash and decrease taxes by hundreds of thousands of dollars.  An educated decision is always the best.”

He then adds, “An owner’s weakest link is fear… without knowing how to proceed, they don’t.  We offer the tools, process and roadmap to proceed with confidence.”  

With over 25+ years of entrepreneurial ventures including five start-ups/sales, he has a solid understanding of what it takes to successfully create, expand and maximize business values. JT instinctively has the expertise and capacity to think about critical factors affecting the success of a transaction, providing an extremely valuable perspective and advantage for his clients.  

According to JT, “You’ll probably do this only once in your life… let’s do it right.”

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