Value A Small Business Like Warren Buffett

This lesson teaches four objectives on valuing a small business. The first objective is to describe a small business model with an owner, a business and customers. The second objective is to understand how money flows through a small business from customers to the owner. The third objective is to compare a small business to a large business, which also has shareholders, a board of directors and customers. The final objective is to learn how to value a small business using the example of an ice-cream stand. The lesson concludes by highlighting the importance of understanding expected returns on investment in relation to the purchase price of a small business.