This is a YouTube video titled "Why you need to Leverage Assets to Buy Business" containing a monologue or presentation from October 5, 2023, explaining the importance of evaluating a company's assets when buying a business, particularly from the perspective of a lending institution and how assets serve as collateral for financing.
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.
