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ECONOMIES OF SCOPE is an idea that was first explored by John Panzar and Robert Willig in an article published in 1977 in the Quarterly Journal of Economics entitled “ Economies of Scale in Multi-Output Production ”. More stable cashflows are attractive for three reasons. Graduate Consulting Group. Management Consulting.
At ConsultantJournal, we know many entrepreneurs, small business owners and consultants wonder about the business impact. Take a look at your cashflow and what a change to sales or staffing could do. Related to Business Management: Consulting Fees: A Guide for Independent Consultants.
Many management consultants hardly complete two or three years in their jobs before they realize that there’s more to life than consulting. Some consultants leave for personal reasons, because they want to start a family or spend more time with their loved ones. Interviews. What is corporate strategy? Group head interview (fit).
A December 2, 2016 Wall Street Journal article was titled, “ Car Sales Roll Along; Aided by Discounts.*” He knew cashflow. Or should we say he knew short-term cashflow. He watched his cashflow like a hawk. The post appeared first on Martinka Consulting.
The Wall Street Journal editorialized that the gerrymandering issue isn’t real because the Democrats picked up seats. The owner worries about cashflow and the employees wonder about bonuses and raises. The post appeared first on Martinka Consulting. The results are interpreted based on one’s perspective.
On June 2, 2018 Jason Zweig’s article in the Wall Street Journal was titled, “ The Fanciful Alphabet Soup Companies Use to Fool You.” Zweig writes that any form of modified profit isn’t cashflow. I get the feeling many people, even in my industry, don’t understand the difference between profit, Ebitda, and cashflow.
The Wall Street Journal and others recently reported about an accounting expert who had predicted the Madoff Ponzi scheme and recently went after GE for what he said are their deceptive accounting practices (of course, GE responded this person didn’t know what he was talking about). Karl Popper.
It’s always been a good story to say when an owner sees in the Wall Street Journal that a $400 million company in their industry sells for 9X EBITDA and expects their small business will also sell for 9X EBITDA (it won’t). I expect to sell my business for 6X total cashflow (profit or EBITDA plus owner salary).
For months now, Steve has been struggling over cash-flow problems with no solution in sight. Ken Lizotte CMC is Chair of the CEO Club of Boston, a branch of CEO Clubs International, and Chief Imaginative Officer (CIO) of emerson consulting group inc., As part of his ongoing column in Money Inc.
In the Discounted Future CashFlow method profits are projected (same as the first issue) and discounted back to a present value. As I write this, according to the Wall Street Journal, the current PE ratio for the S&P 500 is 25.89. The post Business Valuation Lessons From ESOPs appeared first on Martinka Consulting.
A $50 million (revenue) company with 10 percent earnings will sell for a higher multiple (of profit, earnings, free cashflow, or whatever metric you use) than a $25 million company with 10 percent earnings, which will sell for a higher multiple than a $10 million company, and so on.
Wall Street Journal – The greatest transfer of wealth in history will occur in this country over the next decade; an estimated $10 trillion is expected to change hands, and much of this wealth is tied up in family businesses. Cashflow is king (they don’t require full collateralization, but will take as much as they can).
‣ Stephen Devaux (USA), is a project management theorist, consultant, author, and educator with 36 years of experience. It’s important to remember that, all else (risk, cashflow, community relations, ethical or legal constraints) being equal, NO project sponsor has ever said they want LESS value from a project for their investment!
On April 5 the Wall Street Journal had a frontpage article titled, “ Small-Business Owners Feel Weight of Personal Debt Guarantees. 1) debt coverage ratio (the first number is free cashflow and the second number is debt service payments). Some banks will allow borrowers to have a very low (1.1:1
On August 24 my phone buzzed with a news flash from The Wall Street Journal. Cashflow is, however, the tricky one. Small business accounting tends to make cashflow a moving target anyway and a lot of owners “manage by checkbook.” The reason is supposedly “to secure favorable loans and tax benefits.”.
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