I'm pretty sure most of us missed the Crusades … and know very little of medieval warfare.While battle strategy in that era appears to be random and haphazard, certainly in most movies depicting…
I'm pretty sure most of us missed the Crusades … and know very little of medieval warfare. W hile battle strategy in that era appears to be random and haphazard, certainly in…
Most of us weren't around during World War II ... but D-Day was the largest amphibious invasion of all time.It involved over 250,000 troops and 15,000 ships landing along a…
Break the impasse. Reach the Summit.Too often we set these BHAGs ("Big Hairy Audacious Goals") but don't create the milestones and timelines that give us a chance of achieving them.…
“Financial Adrenaline” is a term we love around here because it reflects our commitment to help you turbocharge your business with practical tips and techniques to improve free cash flow, the lifeblood of business. As a further extension of our Financial Adrenaline program, we’re going to share a new Business Finance Tidbit every Wednesday specifically for those business executives who don’t have a finance background. Our current Big River series started with We’re Making Money. Why are we broke? … then No Cash? Can we borrow what we need? and What if our loan collateral doesn’t cut it? Last week, we talked about the need for outside investors.
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“All intelligent investing is value investing — acquiring more than you are paying for. You must value the business in order to value the stock.”
~ Charlie Munger
John Wilson, CEO of Ace Business Stuff, spent the last few weeks preparing for his meeting with Lary Blogger. He called a few days ago to follow up on his recent conversation with his attorney, Frank Lee Documents, when they spoke about investors, DilutionA reduction in earning per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities and ValuationThe process of determining the current worth of a company. An analyst valuing a company may look at the company's management, the composition of its capital structure, prospect of future earnings, and market value of assets. Judging the contributions of a company's management would be more subjective, while calculating intrinsic value based on future earnings would be an objective technique..
“Hi, Lary. I appreciate your coming by to meet in person to talk further about some of the issues we discussed a few weeks ago. Can we talk about valuation first, since that seems to be the foundation for conversations with prospective investors? (more…)
