Tag: Consult
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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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💡 Thought of the day: How non-listed companies can estimate their value
If you’re running a non-listed company and curious about its value, a simple starting point is the multiples method. 👉 Take listed companies with similar business operations.👉 Look at their P/E (price-to-earnings) and P/B (price-to-book) ratios.👉 Apply the average multiples to your own earnings or book value. This can give you a rough idea of…
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“Where do you see your company in 5 years?”
Sounds like a job interview question, right?But actually, it’s one of the most important questions in a business valuation too. When we prepare a valuation report, we don’t just pull numbers out of thin air. A big part of the assumptions comes directly from the management team — the insiders who know best what’s possible…
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So you want to sell your company?
One of the first questions we often get is: what’s the first step if you’re planning a share restructuring — selling some or all of your shares? The answer: set up a data room.It’s basically a shared folder that contains all the information investors, advisors, lawyers, and other parties need to review before making a…
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Why do some companies pay more dividends than others? 💸
A client recently asked me this, and it’s actually a great question. A listed company usually has a dividend payout policy stated for investors to know what to expect – some pay as high as 60% while some pay very small %. Here are the main factors that influence how much a company decides to…
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💡 “If the company has so much cash, shouldn’t it just pay 100% dividend every year?”
Our customer asked us one day. And it’s a good question — because if you’re the new investor, wouldn’t you prefer to get all the cash back every year? Here’s the thing 👉 In a DCF valuation, whether the company pays 30% or 100% dividend, the value doesn’t change much. Why? Because in valuation theory,…
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Why is cash more important than profit?
When valuing a company, one of the most common methods is Discounted Cash Flow (DCF). And as the name suggests, we look at cash — not profit. A company can show strong revenue and profit margins on paper, but that doesn’t guarantee it has the cash in hand. For example: This is why in business…
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How do you repay debt when you don’t have cash?
At the beginning of this year, Company A borrowed money from Company B.The deal was straightforward: repay the loan plus interest by year-end. But there was a condition.If Company A couldn’t repay in cash, the repayment would be in shares. So the big question became:👉 How much is one share of Company A actually worth?…
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