How to analyze financials (for business valuation, negotiation, financing, & acquisition)

Good video jason 👌

Great info here. I think the format of your very first videos were a lot more personal though. The new format is more distracting and sounds more “salesman” than entrepreneur

Way better posture here.

Like seller gives a fuck if you tell him you can’t double dip or
You can’t have your cake and eat it too.

Not sure if these yourtubers have actually done deal or just YouTubing to rip people off.

I don't watch Dan Pena anymore. Just too much bluster and BS. But I like this guy a lot.

This channel is a gold mine, an honest dude with high caliber content

great value thanks

Great! I don't have the gut yet to jump in to acquiring business. May be it is analysis paralysis thing!

Question Jason. Why do many the books on small/micro private equity use EBITDA as the metric by which to determine IRR or ROI? This assumes that the entity is subject to zero taxes. I get that the big boys can minimize tax leakage on mega deals, but for the average guys, that ain't going to happen. 20-35% depending on state/country is a big consideration. Surely Net Income is the right metric to price deals on, while EBITDA is the better one to compare deals/nomalise.

Can you cover what a lender requires on a second or third deal? Like do they want collateral from the 1st business or do they still want you personally guarantee every single business after the 1st business? Or do they still expect your credit to be top notch (I would assume the first business might drop your credit score) or can you just use business credit.

Hey Jason SERIOUS QUESTION:

Can’t the companies whole financials be audited by your accountants so you don’t have to worry about it? Other than valuation, don’t accounting firms make sure everything’s there?

You are an inspiration. Keep it up.

Thank you! Thank you so much. Very helpful

I can tell u came from the pua world from the way u pose in your thumbnails lol .. great videos tho

Hey Jason 📈📈📈🙏☝️

Only one thing I feel you should have added when it comes to add-backs and depreciation. That not all depreciation items are alike and can catch people off guard that could sink their business in the years ahead if they do not recognize or learn how to distinguish this.

Should a machine be depreciated say over 10 years with 5 left to be depreciated. But if that machine actually truly only has a real life span of say 15 or whatever where it will have to be replaced no matter what. It may be important to not add back that depreciation at a 1 to 1 ratio but lower as that asset is actually wearing out and becomes a liability later when it reaches the end of its life having to replace it. Cars/trucks are like this when the business buys instead of leases. Assets that actually lose value over time as they wear and have to be replaced turn to liabilities later. It is important to determine if the business actually requires that asset to make revenue and would it be able to absorb or finance a replacement when that time comes. If not or only a portion could be financed to replace it in the future make sure you don't give credit to a seller for such depreciation when buying the business or your paying for something the business won't get the full benefit of. It would be like buying a used tire with only 20% tread life left. You would not pay 80% for that tire

so if the profits are higher bud they did a lot of tax write offs, it’s legal to pay them less money for the business is what you’re saying?

Your videos are all so useful!! Thank you so much for making them!

Very helpful 👌🏼 God bless you