Firstly, you can acquire assets or businesses below their market value. This may prompt the question of why someone would sell their business for less than its perceived worth.
A comparable scenario can be observed in television shows where individuals flip houses. The investors in these houses are often able to acquire them below market value due to various challenges faced by the sellers. These challenges could include issues like the need for renovations, lack of funds or time to carry out renovations, or other factors that make the seller motivated to make a deal.
By acquiring a business valued at five times its profit for only two times its profit, for example, you can create instant wealth. For instance, if a business with a $200,000 profit would typically be valued at $1 million (at five times its profit), but you can purchase it for only $400,000 (at two times its profit), you instantly gain $600,000 in wealth.
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