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Conducting Due Diligence On Your Investments 101

Money Tree Investing

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The Top 3 Things You Need to Know About Dilligence

Businesses are valued at a multiple of cash flow. For most businesses, it's somewhere between three and six times cash flow. You need to zero in on earnings or ebadot or profit, because you're paying a multiple of it. Quick books is great, but quick books is a manifestation of some human putting information into a financial system. It's not the gospel.

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