The typical economic benefit used in small business valuation is the seller's discretionary cash flow (SDCF). Note that the Valuation multiple is the reciprocal of the Capitalization rate. , the buyer will sometimes look in your direction when pointing fingers
A value, typically expressed as a factor, used to multiply a business economic benefit to arrive at the business value.
Valuation multiple is a multiplier used to convert a single-poi nt business economic benefit into the business value.
Challenges. Some points to consider: Confidentiality – how do you minimize the possibility of employees, vendors, and competitors, finding out that your business is for sale? An experienced and competent broker operates on a “need to know” basis by first evaluating prospective buyers and only then having them sign a confidentiality agreement.