Capital For Value

Not all Income Approach methods are created equal 🔹 Use Discounted Cash Flow (DCF) when the company is evolving — growth is changing, operations are shifting, capital structure is in motion. DCF captures multiple stages of performance and handles uneven or transitional periods.…

What it looks like when you solely rely on “rules of thumb” to value a business

Marketing idea for SMB law group? May be a reason to buy a cybertruck. (Read the tagline on the truck) @SMB_Attorney @KHendersonCo

Tim Sullivan, Head of Yale’s Private of Private Portfolios His comments are true today "One insight David Swensen had early on was financial engineering as a commodity in buyouts. So we focused on firms that brought more than just financial skills to the table and really…

Youtube $GOOGL revenue $58b, users upload content for free, share revenue with content creators Netflix $NFLX revenue $45b, spends $17b on content YouTube is an incredible business as the model promotes more content, whereas NFLX has cash constraints on what content it can…

Is this everyone’s first time hearing about Astronomer, the company??

Lot of truth in this! "Compensation follows autonomy. When you need to be managed, there's a cap on what you can earn. When you know how to create value and do it without being told, there's no cap. This is structural, not personal. The compensation gap isn't about…

Harvard Law Study on Earnouts in M&A 💰 Earn-Outs in M&A—What to Know: ☑️Popular in life sciences, but rising in other sectors (up to 37% of deals in 2023) ☑️Typically 24-month terms & ~31% of total deal value outside life sciences ☑️Metrics vary—revenue (sellers’ pick),…

It's taken me too long to realize how important a mission is for a business Having a mission for your business is like having a budget — you can deviate from it, overspend, or shift priorities. But drift too far, and you’ll lose sight of your goals. Discipline keeps the mission…

Wow! This business is exceptional 16 employees, and not a single one needs to be paid & the $10k month rent checks aren't cashed. Genius! @chasedownleads is this one of your companies? (This is a real listing in AZ on BizBuySell)

Two things people need: • a tangible goal (ideally a number to hit) • a deadline

Well played!

This is what it’s like when a business is valued using 1 approach & disregarding the others There are 3 approaches to valuation All 3 must be considered - but not always used

What is harder to manage: A) equity portfolio B) real estate portfolio C) my daily Oreo intake

Business value isn’t just about revenue. Margins, cash flow, and risk mitigation tell the real story.

Things you only see when valuing private businesses: ✔️“Shareholder loan” that’s never getting paid back ✔️Owner comp way below market, for tax purposes ✔️Rent to a related entity that owns the real estate & the rental rate set whatever pays the mortgage 'and then some"…

When valuing a business, test your revenue assumptions to a tangible metrics (per location, employee, transaction, service call, etc) This means not simply applying a generic growth rate to revenues The classic case is in restaurant valuations that assume a dinner service will…

A lot of people think a business is only worth what someone will pay for it But not all business transfers involve a sale Today I valued a business at $8 million—part of it will be gifted to heirs. No cash changes hands, yet millions of dollars in value move. Every year,…

In private company valuation, a "loan" from the company to a shareholder—taken for tax planning and likely to be forgiven—isn't really a loan It’s a non-operating asset at best, phantom equity at worst This is why private valuation isn't plug-and-play. It's judgment, context,…

Every Investment decision you ever make will have a tax consequence. Yet so few are aware of investment taxation rules. Breaking down 4 keys to investing tax efficiently: