My experience handling a broker's significant accounting adjustment

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from University of Southern California
in St. Louis, MO, USA

5yrs ago

My experience handling a broker's significant accounting adjustment

This is the second post I have published on my Business Insights page:

redacted

I am going to try to post weekly.

Please let me know any feedback.

Sincerely,
Adam

1 Like

309 Views

reply by an intermediary 5yrs ago
from Boise State University in 800 W Main St, Boise, ID 83702, USA

Just like anything else, you'll need to ask questions regarding adjustments for valuation purposes. Normalizing adjustments are standard and typical when preparing a business valuation. However, the adjustments must make sense and be "prove-able" by the seller to you as the buyer. Just because a broker, who may or may not understand business valuation or accounting, makes an adjustment is not necessarily a reason to run away. Get the financials and do your own analysis. Then if it doesn't pass the smell test, then run away.

reply by an intermediary 5yrs ago
from The University of Arizona in Tucson, AZ, USA

As a Business Broker for over 15 years I have seen many interesting add backs from sellers and fellow brokers. "Gambling Losses" is one I will never forget. The $300k in this case may or may not be an add back but it was clearly not "interest" and the broker should have never labeled it as such.