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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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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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'

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Business Valuation Lessons From ESOPs

Martinka Consulting

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. For small businesses, it’s 3-5 times profit (after fair market owner compensation).

ROI 40
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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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Subscription Businesses Are Booming. Here’s How to Value Them

Harvard Business

They argue that the market has become saturated because of the barriers to entry are low (do we really need 53 subscription box companies offering sex products?), grocery market were almost $800 billion, only 1.2% the absolute size of the customer base and the number of customers acquired each quarter). Case Study: Blue Apron.