Title: Can This Legacy Business Fund Our Kids' College? Uncovering Hidden Value with ROE Analysis Tagline: Can This Legacy Business Fund Our Kids' College? Uncovering Hidden Value with ROE Analysis Problem: The Millers, a couple in their early 40s with a combined income of $450,000 and three children rapidly approaching college age, are considering investing in a local, family-owned hardware store. The current owner, looking to retire, is offering a seemingly fair price. However, the Millers are unsure if the business generates enough profit relative to its equity to justify the investment and provide the cash flow needed to contribute significantly to their children's college funds. They need a way to quickly assess the store's financial health and potential for generating a return on their investment that aligns with their educational savings goals. Solution: Using the ROE calculator, the Millers can input the hardware store's Net Income and Shareholder Equity figures to determine its Return on Equity. Comparing this ROE to industry averages and alternative investment options (like a high-yield bond fund), they can objectively assess the business's profitability and its ability to generate returns comparable to other opportunities. Furthermore, utilizing the Times Interest Earned Ratio calculator, they can gauge the store's ability to handle existing debt, affecting its ability to provide profits for the Millers. ROI: By discovering the hardware store's ROE is 18%, significantly higher than the average retail store's ROE of 10%, and after also confirming a safe TIE Ratio, the Millers can project an additional $30,000 per year in income after expenses and debt servicing. This $30,000 annually, compounded over the next 8 years, provides a significant boost to their college savings plan, potentially covering almost 25% of the total tuition costs for all three children. Knowing the business is well managed helps them negotiate a slightly better purchase price, saving them an additional $15,000 upfront. Description: Unlock the secret to funding your children's education using the untapped potential within established businesses. Determine if a legacy investment can truly support your financial future. Category: Lead Gen