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Praying to the God of Valuation

Both Sides of the Table

There were startups and a software industry but barely. And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. There was no money train. It was 1991. We still loved every moment.

Valuation 466
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What Is a Cash Flow Statement?

Up and Running

The cash flow statement is one of the three main financial statements (along with the income statement and balance sheet ) that shows the financial position and health of a business. The indirect cash flow statement is more popular because it can be easily created from reports produced by accounting software.

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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

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Rules of Thumb Business Valuation Methods Explained

Up and Running

Metrics such as discretionary cash flow or business revenue are used. So seeing how the metrics in key industries stack up against each other may give you insight into whether your company is performing well or not. The majority of small and medium-sized companies used this metric for their valuation. EBITA Multiple.

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The 7 Key Metrics Every Business Owner Should Monitor

Up and Running

Did you know that 28% of businesses fail due to problems with the financial structure of the company? It is, therefore, essential to not only understand what each of these key metrics can tell you about the health of your business, but also to monitor how these metrics are performing on an ongoing basis. What Is Cash Flow?

Metrics 60
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Accel 2021 Euroscape: On the path to global dominance?

Cracking the Code

Before answering this, let’s take a look at what happened in the global software and cloud market over the last year. Global market snapshot The world now has 10 software and cloud giants worth more than $100B, representing $4.1T We’ll also see the emergence of more low code / no code platforms that address specific vertical needs.

Global 62
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How to Conduct a Plan Vs Actual Analysis With Spreadsheets

Up and Running

I used plan vs. actual analysis once a month, comparing forecasts and budgets to actual results since I started Palo Alto Software back in the 1980s. Short of some extremely expensive budgeting software for corporations, that was the only way to do it. I’ve spent decades working with plan v. actual in spreadsheets.

Forecast 147