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Time to Find Freedom and Buy Your Own Business

Freedom Factory Podcast for Entrepreneurs

Release Date: 04/10/2020

Is There a Simple Business Valuation Calculator show art Is There a Simple Business Valuation Calculator

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "Is There a Simple Business Valuation Calculator". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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How Can I Live My Best Life by Selling My Business show art How Can I Live My Best Life by Selling My Business

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "How Can I Live My Best Life by Selling My Business". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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Big Mistakes Sellers Make Before Selling Your Business show art Big Mistakes Sellers Make Before Selling Your Business

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "Big Mistakes Sellers Make Before Selling Your Business". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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The Art and Science of Selling Your Business show art The Art and Science of Selling Your Business

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "The Art and Science of Selling Your Business". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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How Does Recasting My Financials Affect the Value of My Business show art How Does Recasting My Financials Affect the Value of My Business

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "How Does Recasting My Financials Affect the Value of My Business". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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Strategy to Sell My Business if I am in Vistage show art Strategy to Sell My Business if I am in Vistage

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "Strategy to Sell My Business if I am in Vistage". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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How to Buy a Business When You Dont Have the Cash show art How to Buy a Business When You Dont Have the Cash

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "How to Buy a Business When You Don't Have the Cash". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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What Are the Types of Business Buyers show art What Are the Types of Business Buyers

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "What Are the Types of Business Buyers". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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When Should I Tell Employees if I am Thinking About Selling show art When Should I Tell Employees if I am Thinking About Selling

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "When Should I Tell Employees if I am Thinking About Selling". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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Strategy to Sell My Business if I am in Tiger 21 show art Strategy to Sell My Business if I am in Tiger 21

Freedom Factory Podcast for Entrepreneurs

Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "Strategy to Sell My Business if I am in Tiger 21". Listen to the podcast or watch the video here https://vimeopro.com/freedomfactory/business-brokers/video/389990100

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More Episodes

Today's episode of the podcast, Robert Hirsch from Freedom Factory talks about "Time to Find Freedom and Buy Your Own Business."

Listen to the podcast, watch the video, or read the transcript below.

Additional Videos From Freedom Factory

Key Difference Between Owning a Business and Owning a Job

What is the Process to Sell My Business Quickly?

 

Robert Hirsch business broker from Freedom Factory

Transcript of Podcast

Hey, it's Robert from Freedom Factory, and I want to talk to you about something that is a really strong belief of mine, but I was in a forum meeting with my fellow group of entrepreneurs and one of my friends looked at me and he said, is buying a business really the most undervalued asset class? You've said that to me often, but I don't know if I necessarily believe it. So I wanted to go through some simple math and the way I look at buying a business and the way I look at other investments. For example, if you buy a business for four times earnings, and let's say you don't make any changes, it's flat, it doesn't grow, whatever. Your changes don't work. That's going to give you a 25% return, meaning it's going to pay for itself in four years because you bought it four times earnings.

Now, on the other hand, let's say you go buy a stock. Let's say that stock has a price to earnings ratio, which is really just a multiple of 33 well, you're buying it at 3% so I mean, what you're really hoping for is maybe 5% after taxes.

So when I look at what that looks like in three years or five years, and use any financial calculator that you want, and you look at the time value of money, those returns make such a massive difference. Warren Buffett's business partner is a guy named Charlie Munger. And Charlie Munger, they asked him, they said, if you were a young man and you were starting again, and there was no Berkshire Hathaway, what would you do?

And he said, I would buy as many software of service companies as I could at five to seven times earnings, which is generally what they go for with low churn, meaning they don't change. And I would change my whole time to forever. So once again, he would buy software as a service companies at five to seven times earnings. With very low churn and it would hold them forever. So he also sees that small businesses are the most undervalued asset class in America. So if you've ever thought about buying a business or how do you find a business that trades at three times earnings or four times earnings or five times earnings, why don't you give us a call at Freedom Factory?

Because I'll tell you, some of the deals that we see are just incredible. And I think money is made on the buy, not on the sell. And if you can buy the right business, especially want to take advantage of your unique abilities are stupid human trick. And I've talked about that in other videos, but what I mean, let's say you find a great engineering company that has a sales problem and you're an extraordinary salesperson. All of a sudden, if you buy that at 4x and you can double it in two years. Well, your return is unbelievable. So if you've ever thought about buying a business or selling a business, give us a call here at Freedom Factory. I look forward to talking to you soon.

 

Thank you so much for watching. Please like and subscribe.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

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Managing Partners

Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch.

About Tyler Tysdal