Doing It His Way: First-Timer Buys 2 at Once
Acquiring Minds
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Analyzing Financials and Seller's Discretionary Earnings
In this chapter, they discuss how the buyer analyzed the financials of the business they were interested in purchasing. The seller was open and transparent about the expenses and revenue sources, allowing the buyer to calculate the Seller's Discretionary Earnings (SDE) number. They also draw a comparison to Warren Buffett's strategy of finding value in unappealing businesses. The chapter concludes with a mention of the significant value found in the assets of the business.
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