Category Archives: Valuation

risk management

Manage Operating Risk To Drive Value

Running a business requires taking risk.  Mitigating risk creates value.  Here we outline how to manage operating risk to drive value.  If your revenues are project oriented with little opportunity for repeat business, or you operate in an industry with low barriers to entry, or a people dependent business such as consulting, advertising or staffing, then what can…

Comparable Company Analysis

Valuation – Comparable Company Analysis

There are a number of approaches to valuing a business. There are market based approaches such as public company trading multiples and comparable transaction analyses and cashflow and earnings based methodologies such as the Discounted Cashflow (DCF) analysis. In this post we will review market based approaches.  Let’s start with the easier one to explain;…

asset

Top Five Impediments to Securing Exceptional Value

What are the main impediments to securing exceptional value for small private companies?  Many owner-entrepreneurs develop expectations for their business’ value based on news items and industry chatter about M&A and financing activity.  However, the small percentage of transactions that make the headlines are not reflective of the average transaction.  The factors we see most…