Global considers many factors to determine the overall value of a business. We also recognize that every situation is unique, however, the basic formula is: (Adjusted Operating Profit x Multiplier) – Debt + Excess Cash.

• Operating Profit refers to your company’s most recent twelve months of Earnings Before Interest and Taxes. This is also referred to as EBIT. If you have recently completed a fiscal year, we use that period. If you are in the middle of your fiscal year, we calculate the most recent 12 months.
• Adjusted refers to items in your income statement that would change upon acquisition. These “addbacks” to operating profit might include excess owner compensation, personal expenses, and non-recurring (extraordinary) events.
• The Multiplier is determined subjectively based on your company’s performance, size, and growth, as well as the fit with Global’s strategic needs.  
• Our offer is contingent on the company being free of debt. This includes bank loans, vehicle loans, shareholder notes, inventory financing in excess of 90 days, and deferred maintenance income in excess of one year. It does not include trade payables, payroll liabilities, or deferred maintenance income of one year or less. If the company does have debt, proceeds at the closing will first go to pay off the debt, and the remaining amount will go to shareholders.
• Additionally, if your company has cash on hand in excess of a normal operating amount as of the closing date, Global can add that to the seller's proceeds. 

In addition to this basic formula, we consider the management team, geographic area, service reputation, facilities, and many other items to determine the overall value. If you have any questions, please contact Tom Salierno Jr., our Executive Vice President of Corporate Operations, at 888-628-7834, ext. 20248 or email us here.