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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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
Justin A. Goodbread, CFP®, CEPA,
CVGA, is a nationally recognized financial planner, business
educator, wealth manager, author, speaker, and entrepreneur. He has
20+ years of experience teaching small business owners how to
start, buy, grow, and sell businesses. He is a multi-year recipient
of the Investopedia Top 100 Advisor and 2018 Exit Planning
Institute’s Exit Planner Leader of the Year.
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