Tag: Invest
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💡 “Back-to-Back Investments”: There is no such thing as a free lunch.
Some business opportunities look attractive at first glance. No upfront investment.Cash inflows match cash outflows and it seems like a free lunch – but is it? Recently, we reviewed a proposal where a company would earn revenue from an asset that it doesn’t even own — the asset is leased, and the rental income is…
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How do we value companies in highly technical industries?(E.g. Solar, power plants, mining, etc.)
At ORNA, we specialise in financial modelling and valuation.For industries that require engineering or technical expertise, we rely on industry-specific reports provided by our clients to ensure our assumptions align with actual operational conditions. Examples include: These reports form the technical foundation of our financial forecasts.From there, we translate the information into revenue projections, cost…
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Sharing Info With a Potential Competitor in M&A — Should You Be Worried?
Our client is planning to sell xx% of its shares to a new strategic investor. One potential buyer showed strong interest. During the NDA stage (Non Disclosure Agreement where each party sign an agreement to not disclose any confidential information of each other) it was discovered that this same company had already acquired over 50%…
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Why we have so many questions when doing a business valuation
One of the most common methods we use to calculate a company’s value is the Discounted Cash Flow (DCF) model. This approach requires not just the historical performance, but also a 5-year forecast — which means we need to deeply understand how the business actually operates. If the company sells products, we break things down…
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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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“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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The more you make, the less you earn?
In some business valuations, we’ve seen companies where profits shrink as revenue grows. Sounds strange, right? But it happens. Why? Because the cost of expansion can outweigh the extra margin. For example, a company may need to take on heavy overhead costs to boost production—but if sales volume isn’t high enough, those costs eat up…
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“Should my company go public?”
We often get this question from business owners whose companies are doing well. Here’s the truth: just because you can list your company doesn’t always mean you should. ✅😊 Benefits of being listed ⚠️ Costs & challenges of being listed So before you decide, weigh the pros and cons. Going public can be powerful, but…
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