Overview Chris Mercer (founder of Mercer Capital) wrote THIS article originally back in the 1990s. It’s a concept that he carried over into the numerous editions (now three) of his book, The Integrated Theory of Valuation (which I highly recommend and you can purchase HERE).… Read More »The GRAPES of Value
Overview In this video, I went into detail on some of the findings in the Alliance of M&A Advisors (“AM&AA”) 2021 Q2 M&A Report. This article will summarize some of those key findings. Just as a reminder, the AM&AA is an association of M&A advisors… Read More »State of the M&A Market (2021-Q2)
Introduction Today, I am going to share a story of four owners. Each have their own unique objectives and goals. Each is at a different stage in their respective entrepreneurship journeys and each have different priorities in terms of action steps they need to take.… Read More »A Story of Four Owners
Introduction In this article, we outlined the three key approaches towards valuing a business. Today, we are going to take a deeper dive into the market approach which is ideal to value a business for exit planning purposes. As we discussed, the main advantage of… Read More »A Deeper Dive Into the Market Approach
Introduction When planning for the ultimate transition of your business, obtaining a business valuation is usually one of the first important steps to take because regardless of what your time horizon is to exit (whether that be six months or six years), you have to… Read More »The Three Primary Methods of Valuing a Business
Introduction In my last article, I spoke about how the absolute size of your cash flows mattered when it came to the potential multiple your business could achieve on the market. In this article, we will explore how timing your entry into the marketplace is… Read More »Timing Matters
Introduction One of the themes I have been trying to drive home in many of my articles is that a key component of value acceleration involves growing both the absolute amount of cash flow in your business as well as its sustainable growth rate. This… Read More »Size Does Matter
Introduction There are two main types of value-killers that can impact both the sale and valuation of a business: lack of separation of owner from the business; and extreme customer concentration. In this article, we will examine why both of these situations create critical problems… Read More »The Two Big Value Killers (And How to Address Them)
Introduction There are three gaps that SME owners have to consider: the wealth gap; the income gap; and the value gap. In this article, we will take a look at why managing and eliminating such gaps is important to business owners on their road to… Read More »Mind the Gap
Overview In this article, we explored the reasons why an SME owner should start performing financial forecasts that specifically target discretionary cash flow. However, a few questions remain. What time frame should a forecast encompass? How often should forecasts be updated? In this article, we… Read More »Roll Up Your Forecast to Win