Recent Articles

Risk Factors

The 10 elements of every business affecting the value of the earnings. From stability of earnings to market to staff issues, all have a bearing on the final risk factor attached to any business operation.

Shareholder Dynamics in Small Business

04/20/2015

The majority of small businesses are owned by a single individual.  An additional pool is family owned or controlled.  The balance usually involves friends or relatives that are passive in ownership.  These forms of ownership create some [...]

Vertical Integration in Business

12/20/2014

Vertical integration in business refers to the process of gaining control over more steps of the product production stream.  Whenever a business obtains or can greatly influence any one of these steps along the process of producing and selling a [...]

How Much is a Fair Profit? Part III of V – Risk

03/31/2013

A third factor in determining a fair profit percentage is risk.  Risk is divided into two types.  The first is insurable and the second is uninsurable risks.  Insurable risks are mitigated and have very little to no effect on the profit formula [...]

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 [...]