Would You Buy This Business for $3 Million?
Case 5 · Recurring Revenue. A pest-control company appears expensive at $3 million until normalized EBITDA, retention, churn and the Rule of 78 reveal the recurring-revenue engine.
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WorldCom: When Reported Earnings Stop Meaning What They Say
Case 4 · Earnings Quality. WorldCom showed how moving ordinary operating costs to the balance sheet can turn losses into reported profit and make earnings stop reflecting economic reality.
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How Do I Read This P&L?
Case 3 · Earnings Quality. Learn how a CFO reads a P&L — from revenue and gross margin through EBITDA, normalization and the cash obligations the income statement does not show.
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Would You Take $7M for an HVAC Business You Think Is Worth $10M?
Case 2 · Earnings quality. An HVAC owner thinks his business is worth $10 million. A buyer offers $7 million. Here is how a CFO rebuilds the earnings and decides whether to sell or keep building.
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Would You Buy This HVAC Company for $4.2 Million?
Case 1 · Earnings quality. A seller presents $1.1 million of “owner cash flow” to justify a $4.2 million asking price. Normalize the add-backs, replacement management and capex before you believe it.
