business valuation

Move Your Multiple: Improve Cash Flow and Decrease Working Capital Requirements

Working Capital and Business Value

Everybody knows that a company’s revenue and profits play a big role in its value.  After all, a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization) is one way to estimate the value a business.  However, valuation is not nearly as simple as that. One way to improve your multiple and increase the value of your business is to improve cash flow and decrease working capital requirements.  This steps will also make your business stronger regardless if when or if you plan to sell it. Cash vs. Profits Cash flow is different than profits in that it measures the cash coming … Read more

The Valuation Challenge – Why it isn’t a seller’s market or a buyer’s market.

And that isn’t changing any time soon. By Ron Edmonds Not long ago, someone asked me if I thought a seller’s market had developed in the green industry.  I responded  with an unequivocal no.  I’ll explain why that is the case now and is unlikely to change anytime soon. First let me say that if the definition of a “seller’s market” is that there are more buyers than sellers, I guess it would be a seller’s market.  In my experience, there are ALWAYS more buyers than sellers.  But that does not mean that it is easy for a seller to … Read more