Action Academy | Millionaire Mentorship For Your Life & Business The Metrics You Need To Know BEFORE Submitting An Offer On A Small Business
6 snips
Jan 10, 2025 Discover essential metrics you must understand before buying a small business. Learn how key performance indicators and due diligence can steer your acquisition decisions. Explore quick assessment methods that simplify the purchasing process and ensure you’re making informed offers. This discussion arms you with the insights needed to escape the 9-5 grind and embrace financial freedom.
AI Snips
Chapters
Transcript
Episode notes
Focus on Due Diligence
- Focus on due diligence to uncover hidden issues.
- Use LOIs as non-binding agreements for initial intent.
Key Metrics
- Analyze key metrics like revenue, SDE, multiple, and DSCR before an offer.
- Aim for a DSCR of 2 or above for healthy cash flow.
CAC and LTV
- Understand customer acquisition cost (CAC) and lifetime value (LTV).
- A high CAC:LTV ratio indicates a scalable business.