Recent Articles

Marginal Value

Attributes of marginal value and the associated principles and formulas to achieve; the why’s and how’s of generating extreme value utilizing marginal adjustments and measurements to leverage the business value and ultimately the owner’s wealth

EBITDA – Drawbacks

02/13/2017

This is Part III in a 3-part series.  Please read Parts I and II before continuing: EBITDA – Part I  standard formula and income statement adjustments EBITDA – Part II  balance sheet impact There are several business financial [...]

EBITDA – Buyer Beware (Case Study)

02/12/2017

In the article EBITDA the fundamentals of Earnings Before Interest, Taxes, Depreciation and Amortization were introduced.   In general EBITDA is commonly used with the market comparable valuation approach.   In that article it was illustrated how [...]

EBITDA

02/03/2017

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.   The value is generally known as operational profit before capital expenditures and tax obligations.   EBITDA is frequently used for estimating value of [...]

Fair Market Value

10/25/2015

‘One man’s trash is another man’s treasure’ Value at the individual level is strictly personal.  But as more buyers for the same item come into play the price of the item begins to stabilize.  If there are hundreds of [...]

Marginal Revenue in Business

02/03/2015

The scholarly definition and reality are two different perspectives.  The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales.  It is literally taken right down to the micro [...]

Business and Industry Growth

01/25/2013

The second most weighted factor in the risk multiplier series for the Discretionary Income Multiplier Formula is business and industry growth.  This factor evaluates the overall change in an industry and in particular the business under review over [...]

Stability of Historical Earnings

01/04/2013

No other element of the Multiply Discretionary Income Formula has as much weighted value as the historical earnings of the company.  Every knowledgeable business entrepreneur, accountant, lawyer, broker, you name them; they look for this [...]

Focus Groups – Adding Real Value to Your Business

12/09/2012

I often wonder how a business could get better if it didn’t know what being the best meant.  How could a small business entrepreneur determine he was indeed performing at or above the industry standard if there was no information available to [...]

The Cost of One Putt

11/21/2012

“That was ugly” quipped by brother. “Good thing you’re not a pro, your family would starve” remarks another brother. My playing partner just sneers at me. Another typical round of golf with family and as usual, I missed that dreaded 2 [...]