JOURNAL

August 20, 2023

What’s Missing in Your Multiple

Discover the nuances behind seemingly straightforward multiples in valuation. While many tout them as the ultimate pricing tool, this blog post uncovers the complexities that lie beneath. Diving into equity and entity values, the piece delves into the Price/Earnings (P/E) ratio as an equity multiple and the EBITDA as an entity multiple. Notably, the P/E ratio's role in showcasing investor sentiment is explored, revealing how growth prospects shape the narrative. Shedding light on accounting policy discrepancies that affect net income and distort P/E ratios, the article concludes that while multiples offer insights, they're not the definitive gauge of value. For a comprehensive understanding of your business's value drivers, alternative valuation methods may be necessary. Gain clarity by seeking expert guidance.
August 20, 2023

Maximizing Value #101

Maximizing the value of your business is an ongoing process that doesn’t happen overnight. A structured approach focuses on increasing cash flows and reducing risk. A proactive approach to identifying external and internal risks to your operations keeps you one step ahead of your competition. Your actions now can pay big dividends when the time is right.