Martinka Consulting

MARCH 7, 2015

The same is true with small businesses when it comes time to sell. I’m seeing more and more owners of small businesses ($3-10 million or so in sales) thinking their company is going to be priced the same as a $50-100 million firm. or less) have said to me: I heard my business is worth 5-7X EBITDA.

Small Business 40

Small Business Cash Flow Banking Sales 40

Martinka Consulting

JULY 2, 2015

In my world of small business buy-sell there are almost as many ways to inflate a business’s income as there are on Wall Street. No legitimate business appraiser would ever do a valuation without including compensation for the work the owner does. Rarely is anything straightforward.

Marketing 40

Marketing Cash Flow Insurance Insurance 40

Tom Spencer

AUGUST 12, 2017

When you run your own small business, it can be difficult to keep an objective distance from what you do. You have your big one-year and … Continue reading "What a Business Financial Statement Can Tell You About the Health of Your Business".

Financial 60

Financial Small Business Sales Cash Flow 60

Martinka Consulting

OCTOBER 23, 2019

And then we get to my world of small business where it’s usually not malicious but is accounting incompetence. On August 26, 2019 the WSJ had an article about how CEO pay is often much higher than disclosed (due to stock appreciation and clauses that escalate compensation).

Financial 40

Financial Cash Flow Real Estate Metrics 40

Martinka Consulting

FEBRUARY 5, 2020

Dependencies are a huge issue in most small businesses. And an owner dependency is often the brightest red flag for most profitable small businesses. This is not about ego; it is about building an exit strategy in order to get a higher selling price. The icing – the top three. The bigger you are…the better.

Cash Flow 40

Cash Flow Small Business Sports Talent 40

Martinka Consulting

OCTOBER 27, 2017

It’s because there are a lot of assumptions in business valuations, which makes valuing a business an art as well as a science. In the Discounted Future Cash Flow method profits are projected (same as the first issue) and discounted back to a present value. An outsider may ask, how is this possible?

ROI 40

ROI Cash Flow Methodologies Small Business 40

Martinka Consulting

JUNE 18, 2021

EBITDA ‡ FCF – Sam’s comments about how you can’t calculate ROI based on EBITDA when it’s a capital expenditure type business sounds like one of my Myths of Business Valuation: Using EBITDA in a capital-intensive business will burn the buyer. You must use free cash flow to truly calculate ROI.

ROI 40

ROI Cash Flow Small Business Financial 40

Harvard Business

MARCH 31, 2017

Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. Overcome your fears.

Finance 70

Finance Balance Sheet How To Metrics 70

Martinka Consulting

APRIL 26, 2019

Record number of small business sales in 2018! More businesses sold after being advertised on bizbuysell.com than any other year, and 2017 was 25% higher than 2016. Our first question is: what is “small?” Pretty small. Cash flow is king (they don’t require full collateralization, but will take as much as they can).

Marketing 40

Marketing PricewaterhouseCoopers Cash Flow Banking 40

Martinka Consulting

NOVEMBER 4, 2014

For PE firms, cash flow, EBITDA, and low cap ex are very important.” ” Let’s translate the above for small business and our personal lives. Cash flow – one of my rules for both business buyers and sellers is, “Cash (and cash flow) is King.”

Cash Flow 40

Cash Flow Small Business Software Banking 40

Martinka Consulting

MAY 28, 2021

On April 5 the Wall Street Journal had a frontpage article titled, “ Small-Business Owners Feel Weight of Personal Debt Guarantees. While it wasn’t all about bank loans, a large portion of the article was about lease guarantees, as I’ve previously written personal guarantees are common with small-business bank loans. .

Banking 40

Banking Cash Flow Small Business Journal 40

Martinka Consulting

OCTOBER 7, 2020

Cash flow is, however, the tricky one. Small business accounting tends to make cash flow a moving target anyway and a lot of owners “manage by checkbook.” Anticipated capital expenditures” is the key phrase. Meaning, when there’s money in the bank we’re doing fine.

Real Estate 40

Real Estate Cash Flow Banking Resumes 40