
Ep 17: Koji Bratcher - SME Valuation Concepts [From An Expert]
Buy and Build
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How to Achieve a Normalized Level of Cash Flow
KG: The goal is to kind of assess what's your go forward level of cash flow. You know, if you've got a company that's very stable,. maybe they've got a little bit of catbacks every few years to replace computers or like you said by a new vehicle or things like that, you could look at an average. But ultimately it comes down to what is the expectation going forward. KG: If we're expecting some big cap X to happen, that's outside of the norm, like next year, obviously that's kind of a reduction to the even on multiple that we would apply.
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