Trading Profits

The majority of our business opportunities show net trading profits. Trading profits in most circumstances are based on owner/operator management control before Income tax and private expenses.

 

 

Add-backs
As with all businesses, some expenses actually paid by the business are either of a personal nature or are a one-off expense, ie. an expense that is extraordinary, and in normal trading periods will not be incurred again. Add-backs normally include private financing costs, owners salaries, and depreciation allowances. All financial institutions, including banks, take into account and fully accept items listed as add-backs, providing the add-backs can be verified and are reasonable. An add-back schedule will allow a prospective purchaser and his financial adviser the ability to recognise the actual operating profits of the business before personal expenses and salaries of the business owners.