Measure It to Improve It
As with many things in life – where we place our attention is what will change. But, if you try to focus on too many things at once, nothing gets done. The same is true for monitoring your business’ financial performance.
-
-
Three Pillars of Business Value
Most business owners focus on increasing profit margins as the primary means of improving the value of their business. Profitability is absolutely important, but it is not the only factor to consider. In fact, there are three components which can increase – or decrease, the value of a business: risk, profitability and growth.
-
Earn-Outs: Things to Consider
Earn-outs are often used as part of the sale of a company when the buyer and seller do not agree on the purchase price and/or have differing opinions about the future growth and performance of the company. It is a deal-making tool that can bridge this value gap.
-
Primer on Business Valuations
Business valuations come in different types and flavors. Most people logically think that there is one, and only one, value for a business. There are three concepts which greatly influence a business’ valuation. They are: Standard of Value, Premise of Value, and Valuation Approaches.
-
Add Value to Your Business
Increasing the value of a company requires years of planning and execution. Most valuators look at the last five years of operating results to substantiate their conclusions. So, let’s look at maximizing the value of your business today for a potential sale or transfer tomorrow.
-
Be Different
The odds are that there are a lot of other businesses in your market providing similar products or services. So what is compelling about your firm that sets you apart from your competition and entices potential customers to buy from you?
-
Financial Ratios: Why They Matter
It is surprising how many business owners and leaders do not keep an eye of their financial ratios, a fundamental barometer of the health of your business. Whether you track these ratios or not, others will. Potential buyers, bankers and investors will analyze trends and compare your company’s ratios to industry peers. Their determination of value and/or potential investment is ultimately at stake.
-
Time to Budget – Do it Right
Most businesses are on a fiscal year which coincides with the calendar year. Now is a good time to look back and reflect on 2018 as well as look forward and create a new budget for 2019. A budget is a roadmap. Based on where you have been, it can help guide you to the desired final destination for year-end.
-
Don’t Set (Unrealistic) Expectations for Your Business’s Value
Most business owners do not have a realistic idea of what their businesses are worth. Owners almost always think that their business is worth quite a bit more than the market would likely bear. There are several reasons for this. At the end of the day your business is only worth what a buyer is willing to pay.
-
Options in Selling Your Business: Asset vs Stock Sale
So, you want to sell your business. For most of us, it is a once in a lifetime event. There is no reason to expect that you should know the intricacies of a transaction. That is why it is oh so important to have good advisers help walk you through the process.
End of content
End of content