The Business Profile is divided into four (4) main sections: Details, Operations, Finances, and Your Valuation. Whether you plan to sell a business immediately or within the next 12-24 months, the Business Profile should be maintained and actively updated for accuracy.
TABLE OF CONTENTS
Business Profile Finances
Input your business financial information from the last three (3) years. This financial information can be directly found on your IRS Tax Returns (IRS Forms 1120, 1120-S, or 1065). If you have any questions on which specific line on your tax return that each category is found (Line 2a, etc.), use the '?' help icon beside each item for more information.
Current Year Budget & YTD
If using year-to-date (YTD) financials, it is recommended to include the latest month's financials in the total sum and actively update these financials. For example, if the current date is June 19, 2021, you will want to input the sum of completed months January '21, February '21, March '21, April '21, and May '21. Once June 2021 is complete, you will want to add June '21 to the sum as well.
If using the year's total budgeted revenue, simply enter the expected year end totals in each specific revenue and expense category.
EBITDA
EBITDA stands for Earning Before Interest, Tax, Depreciation, and Amortization. After inputting your financial information, Mavrek will calculate the yearly EBITDA and Normalized EBITDA values for the business. These values are used in the 'Your Valuation' section to calculate the business valuation range.