The numbers being discussed are a generalization. When buying any small business the diligence phase is a mining expedition. You need to uncover every rock. Sometimes you find debt owed, bad lease terms, or even unreported cash income. You cannot generalize these buys, they are all extremely unique. Push the broker for as much information as you can get, spend the time to try to get to the owner. Ask millions of questions. The more you talk the more you will learn.
The numbers being discussed are a generalization. When buying any small business the diligence phase is a mining expedition. You need to uncover every rock. Sometimes you find debt owed, bad lease terms, or even unreported cash income. You cannot generalize these buys, they are all extremely unique. Push the broker for as much information as you can get, spend the time to try to get to the owner. Ask millions of questions. The more you talk the more you will learn.