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Transitioning from Management Consulting to Corporate Strategy/M&A – the Interview Process

Tom Spencer

As a result, many consultants shift to industry and join the client’s side so that they can not only offer solutions but also take more ownership to formulate, execute, and implement a strategy from start to finish. BizOps / Strategy & Operations at tech firms. Corporate Strategy. What is corporate strategy?

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Financial Shenanigans Versus Incompetence

Martinka Consulting

The Wall Street Journal and others recently reported about an accounting expert who had predicted the Madoff Ponzi scheme and recently went after GE for what he said are their deceptive accounting practices (of course, GE responded this person didn’t know what he was talking about).

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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.” Zweig writes that any form of modified profit isn’t cash flow. I get the feeling many people, even in my industry, don’t understand the difference between profit, Ebitda, and cash flow.

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Growth by Acquisition Isn’t for Everybody

Martinka Consulting

This is not about ego; it is about building an exit strategy in order to get a higher selling price. However, too many small business owners see in the Wall Street Journal that a $300 million company in their industry sold for ten times earnings and assume their small business will also sell for ten times. The icing – the top three.

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Unrealistic Expectations

Martinka Consulting

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).

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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

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).

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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. An outsider may ask, how is this possible?

ROI 40