Understanding Business Earnings is often the first fundamental requirement for investors looking at buying or selling their business and unfortunately, its not as easy as it probably should be. 

The terms "Income" and "Profits" and "Earnings" can refer to a range of different figures on the Profit and Loss Statement.  When you assess a business, it is critical that you know exactly what figure you are looking at, particularly where you are comparing two or more business opporunities.

In this Guidance Note we cover:

• Profit and Loss Statement?
• Proprietors Earnings
• Adjustments and Addbacks
• Historical vs Forecast Earnings?