
Depreciation vs. Capex Buyer's Biggest Mistakes
David C Barnett Small Business and Deal Making M&A SMB
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Understanding Depreciation and CapEx in Business Valuation
This chapter explores the complexities of equipment depreciation and capital expenditures in small businesses, particularly how depreciation can affect valuation. It underscores the necessity of considering actual replacement costs and the implications for potential acquisitions, cautioning against an exclusive focus on EBITDA or SDE metrics.
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