Are we witnessing the beginning of the return of manufacturing to the U.S.?
“Manufacturing is starting to move back to the west,” says Pippa Malmgren of the Canonbury Group. Speaking to the CFA group from the beautiful Usher Hall in Edinburgh, Scotland, she commented that you’re seeing events like the Chinese taking a position in Volvo. Or you’re seeing international investment in farmland in Australia. “International markets respond [...]
The true value of your business may not lie in the financials
We’ve regularly emphasized that owners and deal-makers can underestimate the value of intangibles. This error makes sense…many intangibles remain invisible on the balance sheets of small businesses.
“Let’s see. Right here on the balance sheet are all of your assets? Book value would be …” You may have had a conversation like this recently, and [...]
Do you think merchant service providers really want to help you grow? Ha…
Businessvaluation.com enjoyed a recent post from Ami Kassar at Multifunding on a dumb promotion from Chase that reduces hour interest rate on business credit cards if you hire more people. It’s a typically ridiculous administrative nightmare that offers no value in the end. Surprise! You’d do better spending the time trying to win new [...]
Want to take a graduate course from a leader in valuing your business?
Another semester has begun for Aswath Damodaran, Professor of Finance at the Stern School of Business at NYU, who’s perhaps the best-recognized teacher of corporate finance and valuation. He comments in his Musings on Markets he is “just as excited as I was the day that I taught my first class” in 1986.
Here are two of several [...]
Large companies don’t want to disclose litigation contingencies to investors
businessvaluaton.com is following the story of the August 18th letter signed by a host of Association of Corporate Counsel’s leading members. ACC and many of their members believe that the proposed disclosure requirements about impending risks from litigation will alert the tort bar to insurance and other funds that can be pursued–delaying settlements and counterproductively inducing [...]
BV.com recommended by New York Times small business center
Owners looking to sell can benchmark their financial thinking by using Pratt’s Stats and other databases available from BV.com–as reported in the New York Times.
Don’t underestimate the value of your IP
The assets of the world-famous Tavern on the Green were auctioned off for a few million dollars earlier this month. All of them…except the name. The “Tavern” brand may be worth hundreds of millions. The point is–strategic decisions are increasingly dependent on understanding the value of intangibles. Little effort is invested in assessing the value [...]
Substitute early action for never-ending analysis to increase value
New ideas must be exposed to challenge, question, and clarification. But if owners don’t understand the right way to run an evaluation process, even a cure for the common cold will collapse under a barrage of “what about?” questions from well-meaning (or not) colleagues and partners.
“It’s just hard to have robust answers about an unknown [...]
A simple question that some owners chose not to answer
When thinking of succession planning, there are many standard questions–do the kids want the business? Am I taking enough out of the business for retirement? Do I want to keep working? What do my partners think?
But, BV.com’s interviews show that a surprising number of owners don’t, won’t, or can’t answer the simple valuation question; [...]
Are you overleveraged now? What is it costing you?
Here’s a really helpful thought from the ClarityBV Blog:
One of the most common ways to measure leverage is the debt to equity ratio. However, in recent years many tools that are more sophisticated have been developed. One of the most popular of the recent tools is the Altman Z-Score, a formula for predicting bankruptcy.
You might be [...]
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