DETERMINING THE VALUATION OF STOCK OPTIONS IN YOUR BUSINESS
There are two primary purposes for stock options. One is part of an employee benefits package and the other is to pay for goods and services to help companies retain cash. Both of these purposes are valuable […] Read more
Executives typically use” top-down” communication, instead of bottom-up coaching and listening. Good coaches engage the participant to bring forth ideas and ways to improve their position, activities, and skills. In a bottom-up coaching session, skills are discussed and trained. An effective coach uses the above […] Read more
Marketability Discount – “The concept of marketability deals with the liquidity of the interest—how quickly and certainly it can be converted to cash at the owner’s discretion. ”Source: Chapter 6, Fundamentals, Techniques & Theory, National Association of Certified Valuation Analysts (NACVA)
“We will define Marketability […] Read more
What are typical company goals? Almost all companies will say:
and Increase Net Income
These two goals are universally mentioned as the typical company goals.
One hundred percent of companies have a revenue goal. Most have a net income goal that is usually only […] Read more
Executives typically use” top-down” communication, instead of bottom-up coaching and listening. Good coaches engage the participant to bring forth ideas and ways to improve their position, activities, and skills. In a bottom-up coaching session, skills are discussed and trained. An effective coach uses the traits […] Read more
Things to know | changes happen every hour
November 14th, 135,000 acres have burned in Butte County, Paradise, California, 7600 residences, and 260 commercial structures have been destroyed. There is still another 15,500 structures in the path of the Raging Camp Fire (http://www.fire […] Read more
While it is true that there are several different business valuation methods, they do not have to be confusing. If you have questions about selling your business, it is wise to enlist the services of a business valuation professional who can give you sound advice as to how […] Read more
What is the Company Specific Cost of Capital?
The Cost of Capital typically used for a business valuation is the Ibbotson’s Build-up method which comprises several risk factor elements discussed in a previous article. What method or calculation do you use for your company […] Read more
The way to differentiate from your competitors is to quantify the top three answers they might provide you. For example, for on-time delivery, a quantification may be “we have a 99% on-time delivery while our competitor’s delivery time is only 90%.” Once the quantification is […] Read more
I’ve worked in valuations for decades. Many have asked me, why would you need a business valuation? For starters:
Employee Stock Option Plans.
Partial Business Buyout
Financing or Investing
Estate and Gift Tax
Tax Considerations […] Read more
What better way to triple your business donations than to help teachers get the supplies they need for their classrooms. 1) You help a child succeed, 2) You support your community, and 3) Little people (future entrepreneurs) will write you notes written in crayon to thank you. That […] Read more
A methodical strategic development of a proactive customer service can yield large revenue growth from your existing customer base. The “80/20 Customer Gold Program TM” works. I have used it many times to increase revenue performance by 110% to 300%.
What is a reactive customer service program […] Read more
Rules for Minority Discount in Business Valuations
Minority Interest Discount – The concept of minority interest deals with the relationship between the interest being valued and the total enterprise, based on the factors discussed. “The primary factor on the value of the minority interest in relationship of the minority […] Read more
Helping Hands – Volunteers Reaching Out After Hurricane Florence
Emotional and Psychological impact
Psychology Today reminds us that when talking with disaster victims that the most beneficial thing we can do is “focus more on listening and speaking less”. Often we self-reflect on our own lives […] Read more
This concept is the Rifle vs. Shotgun marketing approach that combines industry segment growth rates and gross margin for each segment to help determine the highest value segments. Then a focused marketing/sales strategy can yield more high-value customers.
Some ideas to think about:
Examine your product […] Read more
Productivity PyramidTM – holding on to your A Performers.
A productivity improvement program (“Productivity PyramidTM”) with a pay for performance program where there are company and employee goals with monthly coaching sessions should be implemented. This method can raise a company productivity by over 400% and help […] Read more
Edible Leftover Food Waste. Yearly tons of food is wasted. Good food, not spoiled or rotten food. Food manufacturers produce billions of pounds of food waste yearly. It is noted that a large percentage of this waste is repurposed for fertilizers and animal feed, biofuels and compost.
Some […] Read more
Monthly financial statements without a cash flow statement are not as effective. The standard cash flow statement will show the increases and decreases in cash of key metrics but only on a monthly snapshot basis.
Cash flow rolling historical and future projections can be a critically important tools […] Read more
Operations & Financial Optimization: Increase your Profits: Financially, Operationally, Strategically: By the Productivity Pyramid, Customer 80/20 Gold Program and more
I help companies with their Business Operations Improvement: Operation areas are pinpointed with a 53 element questionnaire and analysis that will guide businesses to improved […] Read more