Tag: Consult
-
Why do we need to break down revenue structure?
Each revenue stream carries its own story. Some lines of business generate higher margins because they require specific know-how, while others face intense competition and are easily replaced — leading to thinner margins. That’s why we can’t simply take total revenue, apply a growth rate, and call it a forecast. When we request for information,…
-
“We’re just a small company, we don’t have projections.
This is what we usually get when we ask for a company’s forecast. But projections don’t need to be big complicated tables with hundreds of numbers. What we really need to know is simple: We ask these questions because in order to value a company, we need to forecast its revenue for the next…
-
Things we consider when valuing a company
1️⃣ The past – What has the company actually achieved? We look at audited financial statements to see the real, proven performance — not just estimates. 2️⃣ The plan – Usually a 5-year projection from management. This includes revenue growth assumptions, expected profit margins, investment plans, and funding requirements. 3️⃣ The industry outlook – Is…
-
💡 Why Companies Sometimes Choose Loans Over Equity
When a business needs money, there’s a big decision to make:Borrow it (loan) or sell a piece of the company (equity)? Here’s the twist:For some companies, a loan can actually be cheaper than equity.💰 Interest rates might be lower than the returns shareholders expect. But…⚠ Dividends? Optional.⚠ Interest payments? Non-negotiable. Miss them, and you’re in…
-
Why do we look at cash flow instead of net income?
When we use the DCF method (Discounted Cash Flow), the focus is right there in the name — we discount the future cash flows of the company to their present value. So why not just use net income?Because profit on paper doesn’t always mean cash in the bank. A company can show a profit but…
-
“Who would want to buy my business?”
This is a question that often comes up when small business owners start thinking about exit plans — especially when there’s no one to take over. But you might be surprised by how many people could be interested. For example:🔹 A listed company that’s promised shareholders they’ll grow 10% every year🔹 An investor or business…
-
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…
-
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…
-
🩺 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…
-
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…
ORNA Company Limited 