This is a YouTube video titled "How To Leverage Your Assets For Maximum Profit" containing a segment where Megan Thee Stallion explains the concept of evaluating a business's assets from the perspective of a lending institution, focusing on how assets serve as collateral for financing. The content was created in October 2023 and discusses financial strategies related to business acquisition.
For in buying a business is how many assets does this company have that I can leverage? By asking that question, you're stepping into the shoes of a lending institution like a bank, and starting to think about underwriting the business that you want to purchase like the bank would. The very first thing they're going to look at is, okay, what are the total assets? Because they view this as collateral. Right. Typically, you're going to get some sort of loan to value. And if there's a million dollars worth of assets, the bank is going to provide you financing based on 75% of it, for example. They're never going to give you 100%. They're always going to require some sort of mix of cash, seller, finance.
