The salaries & wages expense as well as expenses of a personal nature which have been included in owner managed businesses should also be carefully considered. For business valuation purposes, it is important that all expenses are market related and do not include or otherwise represent profit distribution to owners. If you want to calculate the funds which will be available for distribution to owners or shareholders, you should calculate this separately and not include these values in the cash flow forecast calculations.

CopyFinancial > The salaries & wages expense as well as expenses of a personal nature which have been included in owner managed businesses should also be carefully considered. For business valuation purposes, it is important that all expenses are market related and do not include or otherwise represent profit distribution to owners. If you want to calculate the funds which will be available for distribution to owners or shareholders, you should calculate this separately and not include these values in the cash flow forecast calculations.