Financially Simple

In episode #66 of Financially Simple's podcast, Justin examines how the value and profitability of a business are related by separate concepts. A business can be profitable in the market. But when it comes to its value when the owner wants to sell that business, it can turn out to be worth less than what the owner expected. Justin compares a business's value to its profitability and considers the various factors that influence each of these aspects. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! BLOG TRANSCRIPTION: Value vs Profitability Blog post   TIME INDEX: 00:33 - Value and Profitability are Two Separate Things 03:38 - U.S. Market Segments 06:42 - Actual Business Sales 10:58 - 5x EBITDA? 13:15 - Size Matters 15:03 - Multiples Matter 16:55 - A Tale of Two Companies 20:16 - Focusing on Quality Rather than Quantity 20:55 - Conclusion   USEFUL LINKS: Financially Simple Private Market Project, pepperdine.edu How EBITDA can Mislead, Harvard Business Rev