The Self-Funded Journey From Searcher To Seller
Think Big, Buy Small
Margin Provides Leeway in Transactions
Understanding the concept of a proof of cash aids in financial evaluations. When assessing a business, achieving precision isn't always necessary, especially if a solid return on the investment, such as a 33% return from a three times multiple of pre-tax profit, is present. This return indicates a healthy margin, which allows for some flexibility and errors in financial calculations. The principle that 'margin solves problems' applies equally to both business operations and deal negotiations, suggesting that a strong margin can accommodate risks and uncertainties during transactions.
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