Acquisition earnings become more useful when buyers can explain adjustments and the cost of running the business after the seller leaves. Reconcile reported results, review unusual gains and costs, and identify who will perform the seller’s responsibilities. Don McClain discusses replacement compensation, working capital, equipment and transition spending, while keeping hoped-for improvements in a separate forecast. General education, not a valuation or financing commitment; obtain appropriate accounting, legal and tax advice.
Read the full article (opens in a new tab) ↗