This week I’m teaching a course on Financial Analysis at my alma mater, University of California, Irvine. It got me thinking about the fundamentals of financial analysis and how we use financial statements in business. Preparing to teach a course like this is humbling. I spend a lot of my day thinking in terms of Read more about Professor for a Week[…]
If you’re like a lot of entrepreneurs, you probably assume the value of your company will be determined by its size, and to a lesser extent, your industry. While size matters, there are actually seven other factors that impact the value of your company more than your industry. In fact, after analyzing more than 30,000 Read more about Do you know the value of your company?[…]
Recently, I was working with a client. The purpose of the project was to evaluate the business, and some recent investments the client made. On the surface, the investments appeared to be highly profitable. They were yielding very strong EBITDA margins. So strong in fact, the analysis seemed almost after the fact. With such strong Read more about What’s Your ROIC?[…]
One of the great parts about my job is that I get to work with really intelligent people in really interesting places. I just got back from 5 days of client meetings in New York. It really fires me up to work with such motivated passionate people in the industry. During our meetings, one of Read more about Is it really just the cost of doing business?[…]
Next week I’ll get back to my review if the Boyd Group’s financial statements. But I wanted to discuss something that has been on my mind lately. I’ll be travelling quite a bit in the coming weeks so if you are in the area shoot me an email and let’s meet up! This Saturday May Read more about Are You Lying to Me?[…]
When using comps to determine your valuation there are two pieces of data needed – your financials (i.e. profitability) and the multiple, or comp. Discover 5 simple ways to maximize your financials and increase your valuation.
Discover a simple way to determine the value of your business. Recognize common pitfalls. Avoid costly and risky mistakes when valuing your business.
Previously we talked about valuation methods. Valuation is great, but like any tool, only as good as the person using it.
Anyone can tell you that your business is worth $10 million. But if you can’t find a buyer at that price, is it really worth that much? An investment banker once told me that a business is only worth what a buyer is willing to pay for it…PERIOD.
In order to maximize what a potential investor or buyer is willing to pay for your business you must be able to demonstrate the value of your business to them.
Understanding valuation methods is important (common valuation models are discussed in this article).
You also need to pay attention to recent comps. Know what other businesses in your industry sell for. If possible, know the profitability and size of those businesses so you can compare them to your own business.
But in addition to the above, here are six more ways to maximize the value of your business: […]