Jun 21, 2018
In episode #66 of Financially Simple's podcast, Justin examines how the value and profitability of a business are related by separate concepts.
A business can be profitable in the market. But when it comes to its value when the owner wants to sell that business, it can turn out to be worth less than what the owner expected. Justin compares a business's value to its profitability and considers the various factors that influence each of these aspects.
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BLOG TRANSCRIPTION: Value vs Profitability Blog post
00:33 - Value and Profitability are two separate things
03:38 - U.S. Market Segments
06:42 - Actual Business Sales
10:58 - 5x EBITDA?
13:15 - Size Matters
15:03 - Multiples Matter
16:55 - A Tale of Two Companies
20:16 - Focusing on Quality rather than Quantity
20:55 - Conclusion
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Neither Financially Simple, LLC nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances. Justin Goodbread, CEO of Heritage Investors, LLC, a Registered Investment Advisor, is an Investment Advisor Representative who offers advisory services through Heritage Investors. The information contained within the podcast is for informational purposes only and not considered investment advice. Seek help from a competent Financial Advisor.