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Sunbelt Business Brokers
Posted on 11/20/12 at 12:56 am
Posted on 11/20/12 at 12:56 am
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?
example:
convenience store
asking price: 975,000
Revenue: 1,300,000
cash flow: 360,000
This cash flow must mean the net profit right?
1
Posted on 11/20/12 at 8:09 am to Lookin4Par
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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