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Enhancing Business Valuation: Aligning Owner Perception with Market Realities

VCFO

Owner’s opinions of their business value can be influenced by inherent biases, flawed valuation methodologies, and factors lurking beyond their control. Owners often seek valuations from CPAs or similar entities for purposes such as insurance, estate planning, or internal events.

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Building Blocks of Business Valuation

VCFO

Building Blocks and Best Practices for Driving Business Value Business valuation is not an original or uncommon topic. A good place to start is benchmarking yourself against your competition. Are you considering selling your business in the next several years or looking to address a specific business valuation driver?

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Kitces & Carl Ep 136: Should Internal Succession Plans Provide A G2 Discount For Lack Of Affordability?

Nerd's Eye View

For over a decade, the financial advice industry has been bracing for an "any-minute-now" tsunami of advisor retirements and concomitant sales of financial planning practices. Which begs the question, to what extent should an advisory firm owner discount the sale price of their firm for a next-gen successor?

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Tips for Success: The Role of Profitability Analysis and Improving Profit Margins

Centage

To determine profit margins, companies subtract the total cost of providing a product or service from the sales price paid for the item by customers. Gross Profit Margin: Your gross profit margin is the amount of your sales revenue minus the cost of your goods. Different industries have different levels of profitability.

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Inventory Management in Manufacturing

VCFO

How much is being charged to cost of sales? What is the percentage of the cost of sales to revenue? A benchmark exercise can also provide insight here. Conversely, overstating inventory valuation will lead an organization to think it has too much inventory on hand. How much inventory is being carried on the balance sheet?

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To NPV or Not to NPV: That Is the Question

Fpanda Club

However, firm’s competitors continue to make their investments, including innovation, which will probably put pressure on prices, sales volumes and market shares. Being a promising alternative to NPV, real options valuation has not been widely adopted by the companies neither in its initial version, nor in modified ones.

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Tips for Success: The Role of Profitability Analysis and Improving Profit Margins

Centage

To determine profit margins, companies subtract the total cost of providing a product or service from the sales price paid for the item by customers. Gross Profit Margin: Your gross profit margin is the amount of your sales revenue minus the cost of your goods. Different industries have different levels of profitability.