Why are Amazon, Apple and many of the most promising Silicon Valley start-ups leveraging a subscription business model? Subscribers not only provide steady revenue; they make your company more valuable in the eyes of an acquirer. In a traditional business,
Big public companies trade at a significant premium over small businesses in the same industry because investors perceive big, sophisticated companies as a safer bet than small, owner-dependent companies. Let’s take a look at the professional services industry. Although most
You already know that your company’s revenue and profits play a big role in how much your business is worth. Do you also know the role cash flow plays in your valuation? Cash vs. Profits Cash flow is different than
Have you been thinking about selling your business but just can’t decide if now is the best time? Do you find yourself repeatedly analyzing the economic situation and wishing you had a crystal ball? There are positive signs and there
If you’re wondering when is the right time to sell your business, you may want to wait until your company is generating $1 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). What’s so special about the million-dollar mark?
The value of your company is partly determined by your industry. For example, cloud-based software companies are generally worth a lot more than printing companies these days. However, when we analyze businesses in the same industry, we still see major
The most valuable businesses are the ones that can survive without their owner. A buyer will pay a premium for a company that runs on autopilot and levy a steep discount for a business that is dependent on its owner.
When was the last time you had your blood pressure tested? Taking your blood pressure is one of the first things most doctors do before treating you for just about anything. How much pressure your blood is under as it courses
How much did your home increase in value last year? Depending on where you live, it may have gone up by 5 – 10% or more. How much did your stock portfolio increase over the last 12 months? By way
Facebook acquired Internet messaging service WhatsApp for $19 billion in February 2014. It represents the largest-ever acquisition of an Internet company in history. WhatsApp is a pearl for sure. The messaging service allows users to avoid text-messaging charges by moving