PPP income treatment

by a searcher from University of San Francisco - School of Management

Apr 26,2023

How do you treat PPP income in valuations? Do's & Don'ts? The business has $6m in net income and received $2 +/- in PPP income last year. I would enjoy hearing suggestions etc. As always, thank you to everyone who comments in advance.

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professional from Seton Hall University - Stillman School of Business

Hi ^Searchfunder member‌. Great topic. And lots of great answers so far. In my recent experience, the PPP side of the equations are relatively straight-forward; just removed from any normalization calculations. The bigger issues came from non-payroll/non-PPP items like quarantining costs, additional labor to cover quarantining periods under a contract deadline, PPE costs, levels all dependent on the industry.

04/27/2023 | like reply | 0 likes

intermediary

PPP will need to be excluded from the business income and valuation. It is the original Onwer’s responsibility to either pay it off or apply for waiver before the deal is closed.

04/26/2023 | like reply | 2 likes

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