article thumbnail

Asset Management – Valuation (Part 2 of 4)

Tom Spencer

There are a couple of reasons for this: Asset managers can see cash flow and earnings fluctuate wildly with markets. For alternative asset managers such as hedge funds, their cash flows may be cut by more than half as profits fall and they collect a smaller fee from their profit participation agreements.

article thumbnail

The cost of hiring a consultant for small business in 2023

Asamby Consulting

They're typically engaged by clients who have solid sales or have seen tremendous growth and struggle to keep up with delivery. They identify potential to improve results by looking at your numbers and comparing it to benchmarks. What can you afford: Cash Flow Cashflow is king for small business. If yes, great.

article thumbnail

Unrealistic Expectations – Part II – Gotcha!

Martinka Consulting

And this applies to any type of deal, not just the sale of a business, where terms influence the price. Let’s say that the historical (benchmark) standard for the pricing of a business of a certain size and in a certain industry is four times pre-tax profit. Paying a moderate amount over the benchmark price is fine (10%).