Adjusted Net Profit

The Bigger Picture In Selling Your Business

This is net profit adjusted (recalculated) based on net profit shown on the financial statement of a business. Thus net profit is adjusted to account for add backs and other items that may not have been taken note of in the accounting of it (net profit) as presented on the financial statement.

To all intents and purposes (not least, in business valuation and determination of purchase price when selling a business), Adjusted Net Profit is a reliable indicator of true profitability of a business, as it may account for certain costs such as owner expenses, non-cash expenses and one-off items if they had not been accounted for in the net profit declared.

Adjusted Net Profit is of great significance in a business sale as it is a key measure when using the multiplier method in valuing a business and determining its purchase price.

Contact the Firmgains Team

Explore the options available to you, improve your chances of successful sale.

Send an Email

By submitting this form you are agreeing for us to contact you about our services. Note that all data shared with us is private and will not be shared publicly or passed on to third parties without your written consent. View our privacy policy.

looking to acquire?

If you’re seeking a business to buy, then we can increase your deal flow.

testimonials

head office

We are based just west of London, near Reading. You can reach us at the office, by phone or email.

address

First Floor, 5, Fortuna Court Calleva Park, Reading RG7 8UB

main phone0333 050 8225