The difference between one truck and 500.
Dan was watching an old video of mine about valuing small businesses and posed a question about something Warren Buffet says.
Basically, Buffet doesn’t like EBITDA valuations because he doesn’t believe that little fairies will pay for the equipment and machinery used in a business.
But, as I teach in this week’s video… the depreciation figure you see on the paper is NOT the way to ward off the magic fairies…
Learn the answer to this question and more in this week’s video: https://youtu.be/_S2m1dieX6w
Learn how to be amazing at creating cash flow forecasts and business plans by enrolling in the David C Barnett’s Cash Flow Forecasting and Business Plan Writing program here: https://www.BizPlanSchool.com
Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com
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