My First Million cover image

We Turned $5M Into $419M Buying Cashflow Businesses ft. Jeremy Giffon

My First Million

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Analyzing a Business’s Value and Opportunity When Purchasing

The quantitative analysis of a business can often lead to a commoditized valuation, as seen in examples like the Facebook IPO where valuation projections were significantly off. Instead of relying solely on numerical models, a more fundamental approach looking at growth potential and real-world impact can provide better insights for small business acquisitions. While financial statements play a role, the key lies in identifying potential for growth, like increasing prices, launching new products, or making operational changes, to determine the true value of a business. Winning deals is not always about offering the highest price, but showcasing other crucial qualities like honesty, trustworthiness, and the ability to execute deals efficiently and effectively.

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