How Do You Value A Business That Is Losing Money? Here’s How

 

Most of the time I link to discussion groups to point out the mistakes in people’s thinking. But this discussion is actually a very informative, fact based exchange.

The “opportunity” to buy a failing business on the cheap is pursued by a lot of first time business buyers. Usually it is a mistake. The discussion linked to here goes into some pretty good detail about how to value a business that is losing money – very informative for those of you inclined to buy a business that is losing money.

The unique thing about this example is the restaurant in question is a corporate-owned location and the buyer is the manager. She would buy this existing unit instead of buying a brand new franchise. The question that I have is this: If the parent company can’t make this location work, what chance does a first time franchise owner have? Let me know what you think.

 

Here’s The Link: http://www.48days.net/group/realbusinesssolutioncenter/forum/topics/business-valuation

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One Response to How Do You Value A Business That Is Losing Money? Here’s How

  1. Buy a Business in affordable prices August 17, 2012 at 8:58 am #

    There may be several reasons for the fall in the business and many businesses start loosing money after an extent. It is the best time for the potential buy to buy a business if the demanded business is loosing its money. To buy such kind of falling business you have to pay an extra attention towards each and every aspect because a single wrong decision can make a huge loss for you.