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HOW TO BUY AN EXISTING
BUSINESS OR FRANCHISE

Ratio analysis
The buyer can perform simple ratio analysis (12). If the buyer is uncomfortable with computing and interpreting financial ratios, an accountant can help. The financial ratios can be compared with the industry profiles in RMA to see if the business is performing better or worse than the market. Bizstats.com has information on industry average ratios as well.

Continue to Step 3's Business Valuation Models

Return to Page 2 of Step 3

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Entrepreneurship Program Fitzgerald Institute for Entrepreneurial Studies Email Steve Ash at the Fitzgerald Institute Email James Divoky at Fitzgerald Institute.