Most business owners think EBITDA is a straightforward calculation. Revenue minus expenses minus taxes, interest, depreciation, and amortization. Clean math. But when a buyer puts an offer on your desk, their EBITDA calculation almost never matches yours. The gap isn’t a mistake. It’s strategy. Your EBITDA reflects how you’ve run the business for your benefit. … Read more
Most business owners think enterprise value is just a fancy term for ‘what my business is worth.’ It’s not. Enterprise value is what makes your business worth buying in the first place. It’s the difference between owning a job and owning an asset. When a buyer evaluates your business, they’re not just looking at your … Read more
Most business owners have no idea what their company is worth until they’re sitting across from a buyer. When that moment arrives, the conversation rarely goes the way they expected. The buyer’s number is 30 to 50 percent lower than what the owner thought, and suddenly there’s a scramble to understand how to calculate business … Read more
Owner-Dependent vs. Owner-Independent: The Single Biggest Factor in Your Business’s Sellability Most business owners don’t find out their company is unsellable until the week they try to sell it. By then, it’s too late to fix. The due diligence team pulls apart the business, asks a few pointed questions, and the offer comes in 30 … Read more
As an entrepreneur or business leader, your primary goal is to create an organization that not only survives but thrives at the highest level of excellence. However, many companies plateau at mediocre performance, unable to reach exceptional status. According to organizational psychologist Adam Grant, one key differentiator is identifying and cultivating “giver” employees – those … Read more
Have you ever sat through a meeting that felt frustratingly circular? People rehash the same points, get lost arguing emotions instead of facts, or fail to generate any fresh ideas. Meanwhile, the clock ticks and you leave without making a decision. Edward de Bono felt your pain. That’s why the lateral thinking legend invented the … Read more
In the early 2000s, Apple and Apple Corps, the company founded by The Beatles, engaged in a lengthy legal dispute over trademark rights related to Apple Computers and Apple Records. The conflict originated in 1981 when Apple Computers was a young startup. As they began achieving commercial success, The Beatles’ company Apple Corps filed a … Read more
The rise of e-commerce in the late 1990s and early 2000s ushered in a major shift in consumer shopping habits and revolutionized retail. As more people began shopping online, brick-and-mortar chains struggled to keep pace with the demand for internet retail. Many were unable to effectively adapt their business models for the digital age. Walmart … Read more
Running a business is like learning a new language – call it “Corporatelese.” Navigating the world of business has its own dense lexicon that must be decoded to foster effective communication between entrepreneurs, managers, and stakeholders. Though corporate jargon often perplexes the uninitiated, taking the time to unpack these concepts is essential for any aspiring … Read more
Boeing’s 787 Dreamliner and the Genius of Reverse Engineering When Boeing set out to design the 787 Dreamliner in the early 2000s, they wanted to create an airplane that would provide exceptional passenger comfort and long-range capability at greater fuel efficiency than any previous wide-body aircraft. Essentially, they asked – what would the ideal next-generation … Read more