Bed & Breakfast – Good Investment? – Business Analysis
April 5, 2019
You're excited; you just found the business of your dreams. This is something you have wanted for so long, now it looks like it is finally going to happen.
The current owners are retiring and getting out and the business and the business has been profitable for over a decade. To make the whole deal sweet they have shared all of their historical revenue and expense numbers.
As you pour over their books you see it in black and white, they are making a handsome profit, how fantastic!
This is what my friends shared me with several years ago, I could feel their enthusiasm. I asked them if they had put together a formal cash flow analysis of this business, they said no, is that really necessary?
We have a copy of the businesses books and the business is turning a profit. I offered to put together a formal cash flow analysis and this is what we discovered.
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