In addition to Standard of Value and Premise of Value which we discussed last month, another important concept is the Valuation Approach. Valuation Approaches The valuation approach is the actual method of valuing the business. The most commonly used methods fall into one of three general categories. It should be noted that in valuation engagements, the valuator…
Business valuations come in different types and flavors. Most people logically think that there is one – and only one, value for a business. But that is not the case. There are several concepts which greatly influence a business’ valuation. In this newsletter we will tackle: Standard of Value There are many situations in which…
Most businesses are on a fiscal year which coincides with the calendar year. Now is a good time to look back and reflect on 2022 as well as look forward and create a new budget for 2023. A budget is a roadmap. Based on where you have been, it can help guide you to the desired final…
Wondering if the competition is outperforming you? Looking for some best practices? Want to set realistic goals and targets for your team? These are all good reasons to consider benchmarking your company’s performance against others in your industry. Benchmarking compares your performance against other similar companies. Any metric is ripe for benchmarking – financial, quality standards, service levels, time to market, you name 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. Monitor and focus your attention on those few key metrics that drive your business’ health through a dashboard tailored to your needs.
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.
I can’t think of any company that wouldn’t benefit from competitive intelligence which is actionable and insightful. In fact, you can think of a good competitive analysis as a scouting report of the actual market terrain that your company must navigate in order to be successful.
A dollar is a dollar. That’s true. And, all revenue is equal. Right? Well no, not in an investor’s or potential buyer’s eye. So what makes some revenue good and other revenue better?
Thinking that you might want to sell your business in the next few years? If so, make sure your financial records are up to snuff. It will save you time, effort (and maybe even embarrassment) later on. To start, let’s understand who the most likely buyer of your business might be.
Should you grow your business? It is a simple question with an assumed answer. The answer of course, is YES! But I am not sure it is quite so simple. Before you invest your hard-earned money and time, think about what you want to accomplish and why. Then, carefully consider your options.
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