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HBR Guide to Buying a Small Business
book

HBR Guide to Buying a Small Business

by Richard S. Ruback, Royce Yudkoff
January 2017
Beginner content levelBeginner
320 pages
5h 22m
English
Harvard Business Review Press
Audiobook available
Content preview from HBR Guide to Buying a Small Business

CHAPTER 11

Using Financial Information to Gauge Enduring Profitability

In this chapter, we will show you how to look at several financial measures of a business to quantitatively filter your prospects for enduring profitability. Most businesses, even small ones, keep accounting records that can be used to inform these calculations and measures; these should be provided to you after you sign a nondisclosure agreement with the broker or owner. Sometimes this information is kept by a bookkeeper, sometimes by the owner, and sometimes by a professional accountant. For now, assume that the financial information is collected accurately; we’ll talk more about how to verify this in chapter 14, “How Much Should You Pay for a Small Business?”

At this filtering ...

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Publisher Resources

ISBN: 9781633692510