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Started By
Message
Any business brokers can help me with a question?
Posted on 11/20/12 at 1:10 am
Posted on 11/20/12 at 1:10 am
Trying to decipher a business listing on A brokerage website. 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?
3
Posted on 11/20/12 at 1:16 am to Lookin4Par
Yes, typically cash flow would equal the owners take home before taxes. It may includes perks. For example the company made $330,000 and they added back $30,000 in things like travel, auto expenses, etc.
Posted on 11/20/12 at 7:37 pm to Lookin4Par
4Par,
You didn't post enough info. Is revenue net or gross. What is the percentage of gas revenue to inside sales revenue? A difference between a 35% gross margin and a very small gross margin.
I was in the business for many years from the position of a cooler boy to an executive with the largest chain. I would be happy to advise you concerning your due diligence. I did supervise stores in BR ( Plank Road & north) and Alexandria. I did the whole bang, locations, construction, staffing, and profitability. In the old days it was Pak-a-Sak, then sold to 7eleven.
If you want help, I'd be happy to talk to you.
You didn't post enough info. Is revenue net or gross. What is the percentage of gas revenue to inside sales revenue? A difference between a 35% gross margin and a very small gross margin.
I was in the business for many years from the position of a cooler boy to an executive with the largest chain. I would be happy to advise you concerning your due diligence. I did supervise stores in BR ( Plank Road & north) and Alexandria. I did the whole bang, locations, construction, staffing, and profitability. In the old days it was Pak-a-Sak, then sold to 7eleven.
If you want help, I'd be happy to talk to you.
Posted on 11/22/12 at 9:11 pm to Lookin4Par
This doesn't pass the "too good to be true test"
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