Author: ORNA Company Limited
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🚀 How to tell if a startup is really going to fly
A customer once asked us about investing in a tech startup.Both companies were from a construction systems background — so there were clear synergies.But the question was simple: “How do we know if this startup will actually fly?” One quick check we used is something called the Rule of 40. It’s a simple concept popularized…
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How are we doing compared to our peers?That’s a question we often get from customers.
They want to know —👉 Is our profit margin good enough?👉 Are we spending too much?👉 Or maybe investing too little? Usually, we can benchmark against listed companies since their annual reports are public and quite detailed. For non-listed companies in Thailand, you can also check the short version of financial statements on the DBD…
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Who would be interested in our company?
A customer recently asked us this question — Usually, we see potential buyers who are somehow related to your business: Basically, someone who would benefit when the two businesses combine — when 1 + 1 > 2. But not all deals are like that.Some buyers look to diversify, stepping into a completely different business if…
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💡 Should a company pay out all retained earnings before bringing in a strategic partner?
One of our clients is currently exploring an M&A deal with a strategic investor.Before the transaction, they’re considering paying out a large amount of retained earnings as dividends. Why?Because if it’s not paid before the deal, the new shareholders would also share that retained profit — even though it was earned before they joined. That…
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Why some DCFs have a “Terminal Value” — and some don’t.
When doing a valuation, we often see a terminal value added at the end of the DCF model.But not every company has one. Why? For companies that can be assumed to continue operating indefinitely — like manufacturers, trading firms, or service businesses — analysts usually project cash flows for 5 years, then assume a terminal…
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💡 Why is Book Value sometimes higher than Market Value?
We were recently asked by a client:“Why is the book value (shareholders’ equity in financial statements) higher than the market value (stock price × total shares)?” Let’s break it down. 1️⃣ Book Value 2️⃣ Market Value 📊 Key insight: ⚠️ Takeaway: 💬 Curious how this applies to your business or investment?Drop us a message or…
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Why is PE Ratio so popular?
Even though the Price-to-Earnings (PE) ratio is not the most reliable way to value a business, it’s by far the most popular—especially for non-listed companies. Why?✅ It’s quick.✅ It’s easy.✅ You can do it yourself. Unlike the Discounted Cash Flow (DCF) method, which takes weeks (sometimes months) to build assumptions and projections, PE gives you…
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💡 Deals that Win vs. Deals that Fail
Why do some business deals close smoothly, while others fall apart? More often than not, it comes down to price. 👉 The buyer pushes for the lowest price to maximize future profit.👉 The seller aims for the highest price to maximize return. The deals that succeed are the ones where both sides can meet in…
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💡 Why is share price higher than book value?
When we do a company valuation, we usually discount future cashflows back to today’s value. That’s why the price sometimes looks “high” — there’s a premium. The shareholders who sell get the cash today, without waiting 5 or 10 years for the value to accumulate. So in most cases, if the company is doing fine,…
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Using P/E Ratios to Estimate Your Company’s Value
When customers ask about valuing their company with the Price-to-Earnings (P/E) method, here’s how it works: The result: instead of one rigid number, you get a valuation range that reflects both your company’s performance and how the market values similar businesses. 🚀 Want to know how much your business is worth?At ORNA, we provide independent…
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