Tom Spencer

NOVEMBER 14, 2011

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 ”. More stable cash flows are attractive for three reasons.

Cash Flow 117

Cash Flow Consulting Productivity Telecommunications 117

Martinka Consulting

FEBRUARY 5, 2020

A $50 million (revenue) company with 10 percent earnings will sell for a higher multiple (of profit, earnings, free cash flow, or whatever metric you use) than a $25 million company with 10 percent earnings, which will sell for a higher multiple than a $10 million company, and so on.

Cash Flow 40

Cash Flow Small Business Sports Talent 40

Martinka Consulting

MARCH 7, 2015

It’s always been a good story to say when an owner sees in the Wall Street Journal that a $400 million company in their industry sells for 9X EBITDA and expects their small business will also sell for 9X EBITDA (it won’t). I expect to sell my business for 6X total cash flow (profit or EBITDA plus owner salary).

Small Business 40

Small Business Cash Flow Banking Sales 40

Martinka Consulting

APRIL 26, 2019

Wall Street Journal – The greatest transfer of wealth in history will occur in this country over the next decade; an estimated $10 trillion is expected to change hands, and much of this wealth is tied up in family businesses. Cash flow is king (they don’t require full collateralization, but will take as much as they can).

Marketing 40

Marketing PricewaterhouseCoopers Cash Flow Banking 40

Martinka Consulting

OCTOBER 27, 2017

In the Discounted Future Cash Flow method profits are projected (same as the first issue) and discounted back to a present value. As I write this, according to the Wall Street Journal, the current PE ratio for the S&P 500 is 25.89. An outsider may ask, how is this possible?

ROI 40

ROI Cash Flow Methodologies Small Business 40

Emerson Consulting Group

FEBRUARY 27, 2019

For months now, Steve has been struggling over cash-flow problems with no solution in sight. As part of his ongoing column in Money Inc. It’s 8 PM and everyone has left the building except the guy at the top, Steve, CEO of a mid-size manufacturing firm.

Cash Flow 40

Cash Flow Groups Meeting Conference 40

Martinka Consulting

JANUARY 23, 2019

The Wall Street Journal editorialized that the gerrymandering issue isn’t real because the Democrats picked up seats. The owner worries about cash flow and the employees wonder about bonuses and raises. The results are interpreted based on one’s perspective. What about in your business? Isn’t is also all about perspective?

Cash Flow 8

Cash Flow Sports Fashion Journal 8

Harvard Business

DECEMBER 19, 2017

In a paper recently published in the Journal of Marketing , we show that using some clever statistical methodology, we can predict these drop-off patterns almost as well with highly aggregated data as we could with rich, granular data. the absolute size of the customer base and the number of customers acquired each quarter).

Methodologies 28

Methodologies How To Metrics Sales 28