Without looking it up, can you correctly answer the following questions about your business:
- What were annual revenues for the last three years?
- How many customers were responsible for or made up 60% of your annual sales?
- Name your top ten customers?
- Can you categorize your revenue into major categories such as contract, recurring, Medicare, walk-in, word-of mouth, workers compensation? Do any categories contain a material risk for loss of either the associated revenue or for price cuts?
- What is normalized EBITDA?
- What was your average normalized EBITDA (or owner’s discretionary income) in the last three years?
- How much of your annual revenue is directly attributable to you and your personal / business relationships?
- Are any employees directly responsible for generating revenue? If so, would you agree they are key employees?
- Do you have non-competition agreements with key (revenue generating) employees?
- What is the date of your last business valuation? Do you think your business' fair market value has changed materially since then?
- If a buyer was considering a purchase of your business, the buyer would perform a due diligence. What do you think they will find ? And will their findings be both good and bad?
- Can you continue to grow your business? Do you want to? If so, how much will you have to spend to grow it?
- How old are you? What is your outlook on the future prospects of your business and industry?
