Tag: ORNA
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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 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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💡 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…
ORNA Company Limited 