Tag: Business
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What if the founders don’t want the same ending?
It’s common:One founder wants to keep growing the company.The other wants to exit and cash out. At first, everyone shared the same vision.But after operating for a while—and especially when the business is profitable and the future looks bright—different goals start to emerge. This is where things can get complicated. 💡 To ensure fairness, the…
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5 financial ratios we often check to understand a company better
Ratios give us a clearer view—how strong, risky, and sustainable the business really is. Here are 5 ratio categories we commonly analyze: These ratios help us tell if the company’s performance makes sense—or if something’s hiding beneath the surface. Want to know what these ratios say about your business? Let’s talk.🟡 ORNA – Clear, independent…
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🔴 5 Red Flags in a Company
1. High Profit, No Cash🧾 Profit looks great, but the cash flow is missing. Could mean aggressive revenue recognition, poor collections, or rising receivables. 2. Misuse of fund – e.g. Large Loans to Directors or Related Parties💸 Money going out… but not to grow the business. This could be a sign of poor governance or…
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When should you value a company using book value instead of future cash flow?
Not every business has a clear growth story.Sometimes, the value lies in what it already owns. ✅ Loss-making companies — no profits, but still have assets✅ Distressed businesses — when you’re thinking about liquidation✅ Asset-heavy companies — factories, real estate, etc. In these cases, book value gives you a better picture than DCF or P/E.…
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🩺 Who needs a valuation report?
Both sellers and buyers. For sellers, it’s not just about putting a price tag on your company.It’s a full health check-up. ✅ Are your projections realistic?✅ Are your costs in control?✅ Is your growth story believable? Sometimes the value isn’t the surprise — the insights are. For buyers, you don’t want to overpay.A good valuation…
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💭 “What’s Your End Game?”
Many business owners pour their life into building their company…But few have a clear plan for what comes next. Here are questions we often ask clients (and ourselves) when preparing a business for the future — whether it’s for sale, succession, or simply long-term sustainability. 🔄 Succession & Leadership 💼 Ownership & Structure 💸 Financial…
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Every seller already has a number in mind.
We learned this the hard way. We thought we were being helpful by offering sellers different deal structures, creative options, “win-win” ideas. But no matter how logical they sounded, most of them went nowhere. Why? Because every seller already has a number in mind. We wasted time and some deals did not end well. Now…
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Selling your company? Don’t forget this one costly mistake.
When selling a non-listed company, most people spend a lot of time negotiating the price, the terms, and finding the right buyer. But one thing often gets overlooked:👉 The tax you’ll need to pay. If you’re selling as an individual and make a gain on the sale of shares, that profit is subject to personal…
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📌 Valuing a startup with no financial history
It’s been a busy few weeks — ORNA just wrapped up a valuation project for a client who wanted to invest in a very early-stage SaaS startup. The company was so new that there was very little financial history. What we had was: 🧩 From there, we started piecing things together. ✅ First step: Ask…
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💡 What is Terminal Value—and why should you care?
When we value a business, we try to estimate how much future cash it can generate. One thing to keep in mind is: most businesses don’t just operate for 5 or 10 years—they aim to grow and make money indefinitely. That’s where Terminal Value comes in. 👉 Terminal Value is a way to estimate the…
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