Without a crisis of this magnitude, the momentum for change would not have risen to such a fervent level. The crisis demanded absolute agility, resiliency, and cost management. This article explores how to use this momentum as a springboard to increase cash velocity, continue to improve cash management efforts, optimize supply chains, and achieve operational excellence that results in value creation…Click here to read the complete article or Click here to Download a PDF Copy.

Let’s take a look at a company’s culture and its creation and how to make its culture performance-based.

What is company culture?

A company’s culture is its identity comprised of its employees’ attitudes, beliefs, and values.

A company’s culture is somewhat intangible because it derives from formal rules in combination with the informal understanding of the people who work there. Culture encompasses knowledge, know-how, official rules, and agreed-upon norms of behavior.

The rules do not drive the culture. The culture arises from how individuals and groups within an organization respond to both the official rules and non-official yet compelling norms. Click here to read the complete article or Click here to Download a PDF Copy.

There are three commonly-used ways to analyze a company’s value.

1. For a publicly-traded company, market capitalization (market cap) is the value. The market cap is how much all the outstanding stock is worth at the current share price.

2. For a private company, the value can be estimated by using some multiplier, which is industry specific, times the earnings before interest, depreciation, and amortization (EBITDA). This gives an estimate of what most investors would think the company is worth.

3. Another way to value any company (public or private) is by calculating the economic profit. Economic profit is the profit less the cost of the capital used to create it. For comparative purposes, calculate the economic value-added (EVA), which is the net profit after taxes, minus the opportunity cost of the capital invested in the company.

Research conducted by Stern Stewart on companies that focus on creating EVA growth discovered that they usually outperform the market and competitors consistently, in terms of valuation. When the EVA of a company increases over time, the value also increases. Click here to read the complete article or Click here to Download a PDF Copy.

The wizard seems all-powerful until a closer look behind the curtain reveals strategic intent, intense due diligence, rate of return, and PE deal mechanics. What was once germane or even occult to entrepreneurs becomes clear when value creation is a shared objective where private interest and the middle market intersect.

Senior Transaction Advisors, leadership’s upper echelon who are often-times Managing Partners and/or Co-Founders borrowing extensive experience from investment banking in tandem with M&A, spend decades practicing in growth-stage equity, buy-side transaction execution, industry roll-ups, and business valuation. Click here to read the complete article or Click here to Download a PDF Copy.