All Things Valuation Related | I value all businesses both Public & Private | Follow to learn how | Charlie Stanton, CFA
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Sadly yes
Car payments, alone, are destroying most Americans
I see people making $60k yr with a $900/mo car payment
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I pay this in Phx. I have a guy that can do concrete, stone, stucco, painting. It’s $400 a day no matter what he does + materials. Immigrant from Mexico. Very hardworking. He is doing well.
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Stop paying the landlord rent. Instead, declare squatters rights
Now you will own a home. This is how you trade a liability for an asset.
Will DM you my commission invoice
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You should know deep down why you are looking for a new job
Salary isn't always the reason for a move.
Also, these instances can make it challenging if you stay. Als begs the question, the boss was only willing to move when you threatened to leave.
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Wow! What a bizarre twist
Dementia or lying…
Either way, this would scare me out of the deal. That may be extreme but that is a very odd thing to have happen & makes you question their character
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It's the new Prius - You gotta read more
Owners got tired of being made fun of while driving a Prius so they made them bullet proof. Who is laughing now.
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😂😂
I know a group who took some space. They were forecasting 600 monthly members. Actual membership count is close to 250. They are struggling, to say the least
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Your wife needs to be put in her place. She should be at home using your vending machines instead of in public possibly using someone else’s vending machine.
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One of the biggest scams is that company’s proclaim their generosity with expensive buy-backs while at the same time silently issuing equal amount of new shares.
Great post
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It’s my LA vacation home. Something me, my wife, 2 kids, and lab can fit in comfortably when we visit LA every so often.
Do you expect me to stay in a hotel?
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EBITDA has pretty much always been meaningless
It's just commonly used after the '80's that its too baked into the minds of people not to be used
SDE is powerful but must be used carefully
Not a great gauge if the owner does in fact, need to be involved in the day-to-day of the business and plans to hire their way out of that operator position, and therefore needs some SDE to compensate that person
The best measure if Free Cash Flow to equity. That is the cash you can put in your pocket, which is what everyone cares about
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😂🤣 the truest statement is these guys are quitting their 9-5 to work 24/7 with a PG
I highly recommend business ownership, but get into a business you enjoy & care about b/c the grind is real
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It’s because future generations didn’t work as hard as older generations, per older generations
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This is truly a super power
I have made some cold outreaches to people well above my pay grade, and many times they respond back. May take a few days, but I hear back. It seems to be a super power of very successful people.
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It’s probably because cash flow over a brokerage account are different. The people I see happiest have steady income coming in that more than affords their lifestyle
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You know how I know this picture is fake?? That model of keyboard didn’t come out til 2017.
Nice try, pal
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What I find obnoxious is that it’s just for money & ego. If these were stories from entrepreneurs talking about what they did to build their companies that’s one thing - building something that endures- instead it’s just transactional. This is madness out of pure greed & ego.
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Check out the ABT (@ParkHowell) model. Simple but effective.
ABT is the DNA of story.
Fill in the blanks:
___ AND __ BUT __ THEREFORE
Structure:
• AND is the set up / statement of agreement
• BUT is the contradiction / problem
• THEREFORE is the resolution / consequence
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Apparently you aren't married to a social worker
I am
Financially she is a loser 😜
Professionally she is the glue that holds the mental health world together. Basically a saint. One of the hardest jobs in the world.
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Using @mjmauboussin option analysis from his recently revised book, Expectations Investing, I analyzed $TSLA option value. Take a look: valueinvestor.substack.com/p…
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At the end of the day, most people want to work with people they like
It's usually the first conversation people have after talking to a salesman
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So I am not crazy when I roll my eyes when the topic of ESG comes up. Thanks for the input @AswathDamodaran
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As a valuation professional who has done purchase price allocations, Goodwill is the residual value after all tangible & identifiable intangible assets have been valued & netted against the purchase price
Effectively it is the leftover, unallocable value
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Gotta ask, how many drug dealers do you know to have a big enough sample size to have this opinion?
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Hearing the workload accountants have and then the pay, and slow progression to partner, just makes it sound more like a job then a career
I see why so many start their own & just have small, manageable workloads
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Effective communicator
He can breakdown complex problems/ideas so that everyone can understand
And he can be entertaining with his explanations making him fun to listen to
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If bitcoin stayed the same price for 10 years people wouldn’t care about it. It’s made people money so that’s why it’s so talked about.
It’s very obscure, small percent of users using it to transact.
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Oh man…
Quickly change your identity, move to the a foreign beachside town, get a job as a surf instructor, and hope to god no one finds out.
It is a cardinal sin for cooks
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Great advice
Most people I know who waited to get ‘established’ haven’t settled down and are miserable or are having an impossible time finding someone to settle down with
Newsflash: many still aren’t ‘established’
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Youtube $GOOGL revenue $58b, users upload content for free, share revenue with content creators
Netflix $NFLX revenue $45b, spends $17b on content
YouTube is an incredible business as the model promotes more content, whereas NFLX has cash constraints on what content it can create
And I will argue, YT has almost infinite scale as users content will be uploaded at an increasing larger rate for as long as people want to create content
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IMO, The purpose is two fold:
1) dilate your pupils which causes blurry vision and reduces focus so you don’t focus on prices and instead just buy
2) price anchoring: by seeing a high price up at the beginning everything else seems cheaper
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I bet the guys brother is a cancer doctor
Cancer Doctor: I have bad news for you
Patient: **starts crying**
Cancer Doctor: You will miss me because we don't need to see each other because your results came back clear. Har har har
Patient: **Murders Doctor**
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Serious? Market making all time highs with decent fundamentals but lots of economic uncertainty and you ask, "what happened?" The markets are doing their thing
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Why I buy Power Ball tickets at $900M?
Expected value (EV) , the mathematical representation of probabilities & money
EV= probability * $$$
EV = 1/292m * $900m
EV=$3.08
Cost of ticket: $2
EV > Cost
Provides favorable risk to reward chances
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As a business appraiser, I never ask for the purchase price until after I have valued it. Also, never ask an owner what they think its worth.
Don't want it to impact my judgement.
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I am happy to join a new family that is doing this. My kids day care costs are very expensive and this would help.
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Weird, I just opened the NYT and saw this article. Sounds like you are coming up with your defense…
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Want to Buy a Private Business?
When you look at financials here are some tips:
• Ask for Tax Returns even if it’s a Schedule C
• Don’t take SDE at face value
• Analyze Owner Comp
• Confirm Market Rent
• Analyze Expenses
#SMB #investing #fintwit
🧵👇
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This completely stresses me out
What if he messes up? How does he know? How does he fix it? How does he do this? Why is he doing this? Where does the data go?
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Say no
If the price isn’t what they can afford recommend them another attorney who may be able to meet their price
They don’t value your work if they want a discount
In my experience they are always the hardest clients and I usually wish I didn’t take them on
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But greg, can you afford it???
As your financial advisor, your bank account only has $55. And you owe me my monthly advising fee of $100 😢
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I was fortunate to enter in 2009 with a degree in finance
And by fortunate, I mean my expectations in life were pushed so low, I was thankful to be working for any company that wasn't about to go under
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You spend $300/mth on groceries & $200/mth eating out? Do you have a family?
These numbers seem too low
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Pretty sure on your death bed, your clients, partners, & associates aren’t around your bed congratulating you on your business endeavors.
No one cares
It’s the family & deep relationships you created
This guys life is my nightmare
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Hey @investing_law what is the benefit of having a hedge fund registered in the Cayman Islands?
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9.5x EBITDA is insane for a private company
The risks of a company completely collapsing for small businesses is real. And they should be priced accordingly
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@greg16676935420 what do you think?
I mean, Meb is not wrong
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Consumer Debt in the 80's:
- Mortgage
Consumer Debt in 2025:
- Mortgage
- Car
- Student Loans
- Credit Cards
- Chipotle Burrito & McDonald's Cheeseburger
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You are confused, the matching principle on Wall Street, is matching any product with someone willing to pay for it
It is different than the matching principle in finance/accounting
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If you want kids, do it!
Just keep in mind, after 40, biologically its just harder to get pregnant & they can be higher risk. So be mentally prepared.
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After Digging into $ULTA a little deeper
Main points:
- High ROICs
- High Incremental ROIC's
- Low Reinvestment rate <25%
- No Debt
Financially ULTA seems like a stalwart with growing revenues & consistent ROICs & no debt
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What is extraordinary about $GOOGL and other mega caps
These companies can allocate $100 billion in capital over 5 years (2020-2024) & still earn ~60% returns on that capital
It is no wonder these company's are worth in the trillions today
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Read through all of Greg’s old tweets,
So I drew a bath, about to hop in, and throw a toaster in as well
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•Check owner / employee comp
•Check if rent at FMV
•Understand if high margins are possible at scale (if sales doubles, can margins persist?)
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I do business valuations. I can appraise this account for you. The cost of my services will be $5,000. But for Chase, I’ll do it for $7,500
Deals like this don’t come along all that often
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Clickbait. Just look how much the Garcia family sold off during the peaks & their fuzzy accounting of loan purchases to related entities makes this company less than desirable
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Here are two tables from a recent appraisal of a pest control company. It is not a franchise
The data is from transactions in DealStats
The top table shows the stats of the transaction companies size of revenue/earnings/margins categorized by percentile
The bottom table shows the different multiples based on percentiles
At $500k earnings (need to know what level of earnings?) but assuming that’s EBITDA, for arguments sake, the MVIC multiple seen in the Private transactions approach 16x (before using this multiple, need to dig into further)
The average multiple is 5.8x
(Keep in mind these numbers are specific to an appraisal & may be different for another company)
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Dude, I just tore my ACL in May and had surgery in July
It’s impressive what they can do now.
Technically you don’t need ACL surgery, it just sucks to live without it.
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When we are talking billboards for SMB Law Group, this is what I have in mind…
@SMB_Attorney @KHendersonCo
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I will bite.
Why not a cost seg? Do you plan to hold these for a short time?
Totally agree on all the other points!
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It’s blissful
Gonna buy some scratchers today and walk in traffic yelling at everyone for being in my way
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Daughters spelling test word: Lend
Daughter: Mom & Dad what does Lend mean?
Mom: the library will Lend you a book, so you keep it for a little bit and then return it
Dad: I am going to Lend John $1mm unsecured, fully amortized over 10 yrs but a balloon payment in 5. Rate at WSJ prime plus 3%. Subordinated to his mortgage. No PG. that is what Lend means.
Daughter:*eye roll* at Dad. Thanks mom.
I like my explanation better
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Any recommendations for a website developer?
Problem: Want a new website that has a more professional feel and allows me the flexibility to edit parts as needed like updating my blog or added service.
#smb #WebsiteBuilder #websitedesign
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Only attorneys would say, “on balance, my life is in balance.”
Sounds like a cry for help 😂
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Just picked up this read. Can’t wait to get into it
Recommended by @girdley & @AcquiredFM
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#Value Tip
Working capital is like oxygen in a business
It sustains the life of a business. Its the ignition for new kindling
But if it's missing, or disappears, things end quickly & badly
Managing working capital is managing:
- Cash balances
- Credit to customers (A/R)
- Inventory purchasing & on-hand balances
- Prepaid expenses
- Credit from suppliers/vendors (A/P)
- line of credit
- Deferred revenue (customer prepays)
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