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Lookin4Par
Colorado State Fan
Baton Rouge
Member since Jun 2012
889 posts

Sunbelt Business Brokers

Their business for sale listings have the asking price, revenue and cash flow on the listing. I am wondering what the cash flow means on these advertisements.

example:

convenience store
asking price: 975,000
Revenue: 1,300,000
cash flow: 360,000

This cash flow must mean the net profit right?


ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
1102 posts
Online

re: Sunbelt Business Brokers
Not necessarily net profit as you know it. More like cash before capital replacement and maybe even debt repayment in some cases. You will have to scrub the numbers to see.


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