Cash flow normalization is done with the intention of identifying Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). These differing measures are not interchangeable, but are used by different classes of buyers for different categories … Continue reading → The post Cash Flow Normalization appeared first on Awake at 2 Read more about Cash Flow Normalization[…]
We began this series by saying that Private Equity reputation is as the Great Satan to some, and a savior to others, depending on the personal experience of the speakers. In fact, both reputations are well deserved, but neither can … Continue reading → The post Private Equity Reputation appeared first on Awake at 2 Read more about Private Equity Reputation[…]
Private equity leverage can dramatically increase ROI, but it can also be a trap. In our previous article, we discussed the general structure of Private Equity, how it works, and the types of Private Equity Groups (PEGs). They have grown … Continue reading → The post Private Equity Leverage appeared first on Awake at 2 Read more about Private Equity Leverage[…]
Depending on who you are talking to, Private Equity is either the Great Satan or the savior of small and mid-market companies in the United States. The stories depend a lot on the personal experience of the speakers. Once a … Continue reading → The post Private Equity and Privately Held Businesses appeared first on Read more about Private Equity and Privately Held Businesses[…]
I once had the thrill of interviewing Jerry West on management. He was “The Logo” for the NBA, although back then they didn’t advertise him as such. Only the Laker followers knew for sure. The post My Interview with Jerry West on Management appeared first on Awake at 2 o’clock?.
Truth in pricing is a common issue when discussing the sale of a business. The selling price of their company is a point of pride for any owner. When they are willing to share the price they were paid, they … Continue reading → The post Addressing the Value Gap – Truth in Pricing appeared Read more about Addressing the Value Gap – Truth in Pricing[…]
The Value Gap is one of the most used phrases in exit planning. Simply stated, it’s the difference between what a business owner would realize if he or she sold the company today, and what they need to embark on … Continue reading → The post Addressing the Value Gap – Living Expenses appeared first Read more about Addressing the Value Gap – Living Expenses[…]
When it comes to careers, business owners are a minority of the population. In conversations this week, I mentioned the statistics several times, and each owner I was discussing it with was surprised that they had so few peers. According … Continue reading → The post Owners are a Minority appeared first on Awake at Read more about Owners are a Minority[…]
Purpose after the sale is one of the biggest challenges for an exiting owner. Purpose – “Having as one’s intention or objective.” Many exit planning advisors discuss the three legs of the exit planning stool – business readiness, financial readiness … Continue reading → The post Purpose After the Sale appeared first on Awake at Read more about Purpose After the Sale[…]
In our last article about life after the sale we discussed identity. Even when business owners are comfortable with who they are, however, there is still the nuts and bolts issue of activity. A business owner spends 20, 30, or … Continue reading → The post Personal Vision – Life After the Sale Part 2 Read more about Personal Vision – Life After the Sale Part 2[…]