Remove Cash Flow Remove Journal Remove Marketing Remove Strategy
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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

Second question: is there similar activity with larger companies, small, mid-sized, and lower middle market firms? Barlow research – Two-thirds of lower middle-market business owners are expected to retire. Similar firm in a different market. What we write about is aimed at the $10 million deal and below. Easy money.

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Inflate the Swimming Toys Not Your Assets

Martinka Consulting

On August 24 my phone buzzed with a news flash from The Wall Street Journal. Can inventory values be inflated, sure, but if the deal says the lower of cost or market the value can’t be more than the cost. Cash flow is, however, the tricky one. The reason is supposedly “to secure favorable loans and tax benefits.”.

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Overleverage is Why Banks Shouldn’t Think Like Investors

Martinka Consulting

On April 5 the Wall Street Journal had a frontpage article titled, “ Small-Business Owners Feel Weight of Personal Debt Guarantees. Makes sense given another recent headline I saw, “ Office-Space Subleases Flood Market.” 1) debt coverage ratio (the first number is free cash flow and the second number is debt service payments).

Banking 40
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Fool Me Once Or Fool Me All The Time

Martinka Consulting

On June 2, 2018 Jason Zweig’s article in the Wall Street Journal was titled, “ The Fanciful Alphabet Soup Companies Use to Fool You.” This goes back to before the stock market crash of 1929. Zweig writes that any form of modified profit isn’t cash flow. Marketing expenses (the marketing didn’t work so it’s really profit).

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Economies of Scope - Tom Spencer consulting blog

Tom Spencer

ECONOMIES OF SCOPE is an idea that was first explored by John Panzar and Robert Willig in an article published in 1977 in the Quarterly Journal of Economics entitled “ Economies of Scale in Multi-Output Production ”. Marketing – The cost of advertising can be shared across products. Business Strategy. Graduate Consulting Group.

Cash Flow 117
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Growth by Acquisition Isn’t for Everybody

Martinka Consulting

Good employees are hard to find and often are not in the job market. Great employees with industry knowledge and experience are in the job market even less. In simple terms, if your primary motivation is acquiring a customer base, you are acquiring market share. The icing – the top three. The bigger you are…the better.

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Unrealistic Expectations

Martinka Consulting

I wrote last year about the pricing of middle-market companies and an article in the Zachary Scott newsletter titled “8 is the new 6″ (referring to multiples of EBITDA on middle-market deals). Or perhaps they figure the prices for business have skyrocketed like the stock market. Business Buying Exit Strategies'