cash determines company price
The asking price for a company can be determined by several factors, such as the:
But the underlying factor that supports the asking price — regardless of the perceived market value of the business — is the sustainable cash flow that the business generates. This about it!
What does the buyer need to support their decision to pay the asking price for your company? Enough cash to:
These are the minimum requirements. Thus when your business generates a higher cash flow, the higher your asking price