Quote:
Originally Posted by Redskin Rich
Matty... if it is such a great business, why are they selling it? Remeber, they will probably tell you one story, but it will be another.... I own my business, but started it from scratch. Whenever I have looked at buying someone else's, you have to look at their motives to sell.
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That and you have to do some serious analysis to determine what the right price is.
The price of a business is the present value of the expected cash flows. So you have to determine what profits the place is projected to take in each year over the next 5 years or so.