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Questions You Should Be Prepared to Answer Before Buying (or Selling) a Small Business
In The Trenches
Pricing, Customer Churn, and Capital Expenditure Considerations for Businesses
Pricing should be carefully evaluated as it can have a significant impact on a company's performance. Evaluating pricing power and considering small changes can lead to big impacts. It's important to assess the impact of price increases on customer churn and the revenue mix between existing and new customers. Understanding the mix between maintenance and growth capital expenditures is crucial, as businesses should be cautious of models that require a lot of maintenance capital expenditures.
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