buying a small business

[Schneed10]

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.

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.