News Articles

Steve Parrish  I was working with a business owner on ideas for retaining a key employee. The employee was threatening to leave for a higher paying job, declaring “I love working here, but if I’m going to stay, I want to have some skin in the game.” I started explaining ... read more

By Maurie Cashman Stock bonus plans have many advantages over traditional employee incentive plans, which are designed to motivate employees to work smarter and harder. Last week we discussed how retaining ownership of a business while backing away from the daily management is a question we often get from owners. ... read more

Mike Finger Is your business dependent on you?   You rightly answer, “Of course it is you idiot, I’m a small business owner.” It’s completely understandable. You started the business from nothing. In the beginning it was only you. You made the difference. 1,000 times the only reason the business survived was because you tackled the ... read more

By Maurie Cashman Retaining ownership of a business while backing away from the daily management is a question we often get from owners. They wonder if, rather than exiting, they can back away from their company. Business owners are telling us things like, “I’d like the freedom to do whatever ... read more

Broadband Construction Component Manufacturer Available for Acquisition Midwestern United States 3-Year Average Sales $410,000  EBITDA $155,000 Sale Price: $820,000 Originally founded in 2005, this patented product makes the installation of Outside Plant (“OSP”) much quicker, more predictable, more economical and allows a smaller installation footprint.  It also reduces the ongoing ... read more

By Elvin Mirzayev, CFA, FRM | Updated January 23, 2018 — 9:44 PM EST In equity valuation theory and practice, we generally encounter two valuation approaches: discounted cash flows (DCF) and comparables.   The DCF Model The DCF model refers to a group of approaches that are also called “present value models.” These traditionally assume the value of ... read more

By Maurie Cashman Sales comparables present several problems when used to calculate value multiples and business valuation. The Direct Market Data Method (DMDM) is one of the methods business valuators use to calculate the value of a business.  It assumes that a buyer will not pay more for a business ... read more

December 19, 2017 People don’t want advice. They want the pain to go away. They want to keep doing the same thing but get different results. The world is full of answer-givers, but who can find a skillful advisor? What kind of advisor are you? Expert. You know something others need ... read more

By Maurie Cashman Advisors are hired to do one thing – advise.  Blindly relying on your advisors, no matter who they are, is not always in your best interest.  A conversation I had today clearly underscored that fact. Sam is president of a large regional distribution firm.  There are multiple ... read more

By Maurie Cashman Accounts receivable management relates to business value.  Collection of accounts receivable requires diligence on the part of management, and accountability by the right people in your organizations. 1) Accounts receivable are an asset on a company’s balance sheet.  All assets must be funded, either by owners’ equity ... read more

Takeaway: Working capital management is just as important as revenue growth and profitability when creating value in your company as you prepare to sell it. Most company owners will agree on this: landing a big order or project is fun, balance sheet management is anything but. That’s why company owners often ... read more

By Maurie Cashman A client asked me what blindspots he had about his business. The first one I gave him I give to most owners – It is not all about you! “We cannot live only for ourselves.  A thousand fibers connect us with our fellow men.” ~Herman Melville Many ... read more