Archive for December, 2008
Capital investment and cash flow for a business for sale – what do these mean?
tmonk asked:
Saw an ad for a business for sale, one of the things mentioned was “no capital investment required” – does this mean that in order to take over the business, from a financial point of view, one would only need the means to purchase the business (not including insurance, permit and license fees, etc).
And, when cash flow is listed, I’m not sure what that means exactly – I assume this means the amount of money the business has on hand to cover operating costs ; but what I’m not sure of is how this would benefit the buyer – except to demonstrate that the business has been a successful and financially viable operation?
Reina Beneker
Saw an ad for a business for sale, one of the things mentioned was “no capital investment required” – does this mean that in order to take over the business, from a financial point of view, one would only need the means to purchase the business (not including insurance, permit and license fees, etc).
And, when cash flow is listed, I’m not sure what that means exactly – I assume this means the amount of money the business has on hand to cover operating costs ; but what I’m not sure of is how this would benefit the buyer – except to demonstrate that the business has been a successful and financially viable operation?
Reina Beneker
How does Discounted cash flow differ from the other valuation methods?
Wendy Z asked:
Why do you think discounted cash flow as the valuation method “best justified by financial theory”?
Casey Esbenshade
Why do you think discounted cash flow as the valuation method “best justified by financial theory”?
Casey Esbenshade
What sort of things are fixed and variable in cash flow statement?
Sian D asked:
which things are fixed costs and which are variable in a cash flow statement ?
Donovan Lerwill
which things are fixed costs and which are variable in a cash flow statement ?
Donovan Lerwill