If your business is growing slower than you want or if you simply need to accelerate its growth, then a comprehensive marketing strategy will increase your company’s value exponentially. A common issue we see is that business owners fall short in the quality of their marketing strategies. Marketing Strategy Explained A marketing strategy describes an …
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Managing multiple clients can be overwhelming, especially for a new advisor. A competitive work culture, a heavy work schedule, and overcommitment also lead to additional stress and eventually burnout. Especially when establishing a new consulting business, new client acquisition takes up a lot of time, and you end up working long hours. Therefore, maintaining balance …
Free cash flow (FCF) helps eliminate the guesswork in valuation. It is one of the essential components of discounted cash flow analysis. It shows how much money is left over for investors and calculates an accurate number for earnings, so you don’t have to guess the value of the stock. FCF is the cash available …
Train people well enough so they can leave, treat them well enough so they don’t want to. (Sir Richard Branson) When a business valuation is performed, a business owner primarily focuses on the financials and business operations. Many fail to recognize their employees’ critical role in driving the business toward higher revenue. Sometimes, this oversight …
How Investing in Your Employees Leads to a Higher Valuation Read More »
COVID-19 illuminated a vital, frequently missed truth: to develop, defend, and sustain organizational value, leaders must consider a far broader and more diversified collection of stakeholders than shareholders. The most successful businesses recognize that any firm’s goal is to produce value for customers, workers, and stakeholders and that the interests of these three groups are …
The business valuation process determines the current market value (CMV) of a company. It entails in-depth qualitative and quantitative analysis of all factors impacting a business. There are three primary valuation approaches: the asset approach, the market approach, and the income approach. These approaches calculate a business value in different ways, but all strive to …
Valuation Basics: Understanding the Asset Approach Read More »
Value creation is the backbone of building a successful company. A company’s sustainable and profitable growth creates business value. This type of growth occurs through robust, streamlined processes; a functional, efficient operational structure; and strong, competent management and leadership teams. While aligning the business owner’s vision for value creation with their planned exit is essential, …
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A common myth is that selling price equals business value. As Warren Buffett has famously quoted, “Price is what you pay; value is what you get.” What Is Business Value? Value is fundamental. The theoretical or notional value is also called fair market value. It represents the highest amount a willing and able buyer will …
While business owners often get a business valuation done for various reasons, they remain unsure what to do after the valuation. Whatever the reason for getting a business valuation, you can always make the most out of it by knowing what to do afterward. What Does a Business Valuation Determine? A business valuation is a …
Starting with the end in mind is the best practice when founding a business. As you go about day-to-day planning and the overall building of your business, consider its value proposition, an estimation of the health and well-being of your business, and the factors directly or indirectly impacting your business value. Elements of Business Value …
