Business evaluation can be tricky process

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zihadhasan019
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Joined: Sun Dec 22, 2024 4:46 am

Business evaluation can be tricky process

Post by zihadhasan019 »

There are hundreds of factors that you have to take into account before you unload your cash on some pour soul who only wants to make as much money as they can from the sale of their venture. One of my banking buddies once said: "If you really knew the business, you probably would not be buying it". He could not be any closer to the truth. The fact is, if you knew everything the current owner knows, you probably would never spend a penny on buying the business, because you would know the underlying truth about all the problems you’re going to inherit as you try to breath new life into the venture.


While you might not know everything abou taiwan email list t the business, you can learn a lot by using a few of the tips I’m going to share with you. Most buyers on sites like Flippa like to ask for traffic stats, some type of screen caps on earnings, and then ask any off-the-wall question that makes them feel better. Then they dump their money into an escrow and call it a day, only to figure out months later that their investment is not panning out.


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This illustrates my 1st rule: Ventures that are publicly listed for sale are not in good shape, are failing, or are out-right scams. But this does not mean they are all bad investments. This only means you should think a little more about your evaluation before you post up that bid. Most of these ventures are failing because they have no real growth, the owner’s personal expenses are eating up the earnings, because of bad marketing, bad design, they have a bad idea, or the industry has shifted in some way that has left that company – or all companies in that industry – in a bad position.
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