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by an investor
6yrs ago
from Illinois Institute of Technology
in Pasadena, CA, USA
A few points: (1) a quality of earnings will flush out the answerredactedwhat are the trends over the last 3 years? vs TTM margins when the seller wants to sellredactedwhat margins do the competitors have, as a niche product business will typically have higher margins than commodities.
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by a searcher
6yrs ago
from Dallas Baptist University
in Atlanta, GA, USA
Great point. My brother is an owner-operator of a Chick-fil-A. His focus is on leadership development of his people and delegates much to his people. An owner-operator within his same city has one of the highest profitability (i.e. EBITDA) in the CFA franchise, but executes considerably more than my brother and is very short-term focused in his people.