Archive for the ‘Small Business’ Category
I want to buy a business. When I see “Cash Flow”,are lease payments for the building included? Debt service?
Kent asked:
Let’s say Business X costs $3,000,000, with Revenues of 3,500,000 and EBITDA of $500,000. I assume out of this $500K I need to live, pay the debt service, pay taxes, etc. Can someone provide with a rough breakdown as to how much each of these things would be? Let’s say I live on $40K, how much can I pay down the debt each year?
Also, is “Cash Flow” typically an easy way to say EBITDA?
Lemuel Sangha
Let’s say Business X costs $3,000,000, with Revenues of 3,500,000 and EBITDA of $500,000. I assume out of this $500K I need to live, pay the debt service, pay taxes, etc. Can someone provide with a rough breakdown as to how much each of these things would be? Let’s say I live on $40K, how much can I pay down the debt each year?
Also, is “Cash Flow” typically an easy way to say EBITDA?
Lemuel Sangha






















