Absolute risk is defined as the probability of gaining or losing from an investment. It is the deviation from what is expected of a certain investment, which can be positive or negative. For purposes of an assessment before investing, this risk is placed in an absolute measure to better gauge if… View Full Term
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(Article originally posted here.)In the M&A world, there are few terms as dreaded as the “Re-Trade”. The continued market uncertainty, coupled with…
By: Michael Carter
In my previous article, Value is in the Eye of the Beholder, I presented the idea that the definition of value can vary depending on the stakeholder. I stated that for…
By: Erick Hamdan
Enterprise value (EV) is a financial metric representing the entire value of a company after taking into account both holders of debt and of equity. Building enterprise…
By: Stephen Williams
If you are selling your business, it's smart to seek out someone who has done it before. The challenge is that sometimes entrepreneurs paint a rosier financial…
I pulled an old valuation text book off the shelf the other day titled The Valuation of Business Interests by Ian Campbell and Howard Johnson. I hadn't opened it in…
By: John Carvalho | President, Divestopedia Inc.
There is a lot of confusion about what maximizing shareholder value means. Very simply, it means: increasing the long-term wealth of the owners of the company. Another…
By: Charles Smith
Finding a quality, cost effective chemical manufacturer is not an easy task for businesses.You have taken pride in making your manufacturing business the best around.…
By: Jock Purtle
I’d like to congratulate you on owning a successful automotive repair, parts or service business. It takes a considerable amount of sacrifice to be successful in…
Wow did I get a real world demonstration of the saying, "Beauty is in the eyes of the beholder," recently. If I could rephrase that to the business sale situation it…
By: Dave Kauppi
A low interest rate environment can provides incentive for companies to grow through mergers and acquisitions, but good deals are good deals in both high and low…
By: Brad Mewes
Excerpts from the book "Time Really Is Money: How To Work For $5,000 Per Hour," Burn the Boats Press. For reasons that aren’t entirely clear to me, I spent four years…
By: Rob Slee
From 1988 to 2000, I closed about 5 deals per year with an average value of $10 million per deal representing both buyers and sellers. That’s over 50 deals that…
By: Ian Smith
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