This is a YouTube video titled "Unlock Financial Success Master Earnings Multiples for HUGE Profits!" featuring a speaker discussing investment strategies related to earnings multiples, cash flow, and profit expectations. The content focuses on financial planning and evaluating business purchase prices for maximizing returns.
You can't make any profit in a five times earnings deal. That's why I say if you're looking for cash flow, look for something that's owner operated two to three times earnings that you're going to expect to work sometime in a mountain. If you're a little bit more, you're looking for appreciation and you're looking to sell a company for a lot of money, you're more interested in appreciation on that deal and buying a good company at a fair price. And so the technique would be, okay, it's four times earnings, it's still 25% return on your money. If it's five times earnings, it's 20% return on your money. Right. If you think if you're using all cash but if you're paying, if you're using debt service, you're not making any profits at five times earnings. So we have to really evaluate the money math and that's why engineering our plan in the beginning is the smartest step. Right. So we can get through these things.
