Determining Value Early On is a Good Idea for Business Partners

Partner Buyout:  Determining Value Early On is a Good Idea for Business Partners I was recently asked if I could help a company develop a valuation methodology for their business so that if one partner wanted to buyout the other, they would already have an agreed up on formula valuing the business.     Two weeks later I got a different call from another owner asking for the name of a valuation consultant because one partner had died and they needed to get a valuation to figure out the value of the Company.  The spouse of the deceased partner was getting […]

What’s your EBITDA?

What’s your EBITDA? When I give speeches I like to wrap up the presentation by doing a group exercise where the participants have to look at a simple set of financial statements and calculate a Company’s EBITDA (earnings before taxes depreciation and amortization). This is the most commonly used financial short hand for understanding the operating cash flows a company generates. What’s interesting is many business owners and CEOs have a tough time calculating EBITDA. Many go back through their the notes from my presentation to look up the formula. What this tells me is many owners and CEOs of […]