The best Valuation eBooks: Reddit reviews

From 3.5 billion Reddit comments

So? That's nothing special at all. This stock went from 9 to under 3 in a matter of weeks again. Guess how that happened? No seriously, guess.

Please man, you're embarrassing yourself. Stop trying to play investor and actually read up about it. I highly recommend How to Swing Trade by Brian Pezim to start with.

Barriers to entry are there. But like a lot of boutiquey things, many people would like to run such a business and not strictly related to reasons linked to a good business plan.

May be easier to buy an existing firearms business rather than trying to start one.

This may be useful to you:

https://www.amazon.ca/HBR-Guide-Buying-Small-Business-ebook/dp/B01KP33K4Y

I'm not sure if this particular business is a good deal, but if you're contemplating whether to buy or start a business I recommend reading Buy Then Build, it's a great book on buying businesses.

I just finished reading this book. It guides you through the process of acquiring an existing business.

Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game https://www.amazon.com/dp/B07JKM2F5Q/ref=cm_sw_r_awdo_navT_a_7K91HW3DK3VD1DBV131Q

There is a lot of good advice here. Consider reading this book as well:

HBR Guide to Buying a Small Business: Think Big, Buy Small, Own Your Own Company (HBR Guide Series) https://www.amazon.com/dp/B01KP33K4Y/

Also consider that there are other opportunities out there. Maybe the best thing you can do is to just spend the time vetting this deal and understanding the risks and upsides, well eventually walking away. There are plenty of other businesses in a similar position, so it's hard to imagine that the very first one you are considering buying is the right one for you.

No, but this book is a great resource. I am reading for the second time, and actively looking for another business to buy myself. https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q

First question, do you have experience running an online business in the niche that you're looking? I've owned an online retail business for over 21 years and still sometimes feel like I don't know what I'm doing... but at least I have my experience to fall back on. I can't imagine buying a business in a completely different industry.

As for due diligence, you should know what reasonable multiples for the industry/niche you're in... e-commerce sites are currently selling for around 3-4x SDE for medium sized (six figure SDE), 2-3x for <$100k SDE, and higher multiples for businesses with more than 7-figure SDE/EBITDAs.

You should verify everything... Ask for 3 years financial statements (profit & loss/income statement, cash flow, balance sheet), 3 years bank statements for all business accounts, and 3 years business tax returns. If you don't know how to read those, hire a CPA to review them and look for any anomolies.

And about "passive" income... no business is truly passive. If you buy a website that's generating "passive income" and don't do anything, it might continue earning the same revenue for a few months or a year, but things change and competition will encroach on your business. Whether it's a content site or an e-commerce site, they all require constant optimization to even stay at the same level. From organic SEO to PPC to social ads... they all need to be constantly optimized or you will be left in the dust. If you don't know how to do any of that or have the money to hire professionals, then it's probably not a good idea to jump into a business you know nothing about.

Also, read Buy Then Build it's a great book about buying an existing business to grow.

Thank you for sharing!

Yeah I'm trying to learn more before getting into swing trading, but reading this book:

https://www.amazon.com/How-Swing-Trade-Management-Strategies-ebook/dp/B07HZ38XVQ

The author literally says he's not into buy stocks before earnings, but everyone has a different strategy.

Have a read of this: Buy Then Build: How Acquisition... https://www.amazon.co.uk/dp/B07JKM2F5Q?ref=ppx_pop_mob_ap_share

However, you ALSO need to know how to run a business if you have not done so before. I highly recommend reading:

• the e myth
• the personal mba
• 24 assets

Also, what is crucial in those above figures is the net profit (not cashflow). Do you know what it is?

You can open a LOT of different types of businesses for $200,000. But what type of business you should open depends on you/your girlfriend's skillsets, experience, and long term plans. Do you want to work full-time in the business? Are you okay working 80 hour weeks? Do you have any skills that lend yourselves to a particular industry or trade?

If you have decent credit, some experience, and a good business plan, you can buy a business through the SBA with 20% down. That means, with $200k, you could easily buy a $600k business and still have a little operating capital ($50k) left over. A $600k business should be generating about $200k a year in free cash flow, which, after debt service, should generate about $120k a year. If you can grow it, pay off debt faster, then it could be even more profitable.

If you haven't started a business before, then you might consider buying one first, running it - hopefully growing it - and selling it before starting something from scratch. Here's a good book on buying businesses - Buy Then Build.

I can’t offer much advice but am fascinated in private equity and VC etc. What I would suggest is you read this:

The Private Equity Playbook: Management’s Guide to Working with Private Equity https://www.amazon.co.uk/dp/B07NFXRL3K/ref=cm_sw_r_cp_api_-Rl1Fb8P127FT

It talks you through all the basics of how it works. I found it really useful and interesting for such a dry subject.

This is a decent book on the subject

Valuation of Financial Companies

How many businesses generating 0.5-1.5M in annual FCF have you looked at already?

From this post, my guess is zero.

Buying an existing business is a huge topic that requires a lot of unpacking.

Start by reading the HBR Guide to Buying a Small Business.

It will frame many of the key pros and cons, as well as give you lots of direction on next steps and clarify many of the early questions you have.

Good luck!

First, keep enough in your passive funds to keep you going even if you lose the rest. Pull out your SWR and that's it, no matter what. Then maybe keep another chunk passive that you only move to active after you've had some success with that.

For the active funds, it depends what you're interested in. If you want to contribute to society while making money, another option is angel investing. Look for small startups that need early funding, and have some potential for making a positive impact.

There are some books on Amazon that look decent; I've read part of this one and it sounds like a lot of work, but potentially rewarding.

But don't go into it lightly. It's easy to throw your money away.

Why can't you represent yourself as a team member of the fund? It lends a lot more credibility to say you're part of a team backed by xyz investors looking to purchase a single business, rather than a random tire kicker. Also, are you approaching business owners directly, or going through brokers? The latter will not divulge detailed info without financials.

If you haven't already, pick up a copy of HBR Guide to Buying a Small Business. https://www.amazon.com/HBR-Guide-Buying-Small-Business-ebook/dp/B01KP33K4Y/ref=sr_1_1?ie=UTF8&amp;qid=1489500489&amp;sr=8-1&amp;keywords=harvard+business+buying+business