Tag: ThailandBusiness
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“The company is a petrol station… but next year we’ll invest in transportation too.”
We often hear something like this during valuation projects. When we do a business valuation using the DCF (Discounted Cash Flow) model, sometimes the company hasn’t fully decided on their next move. Maybe they’re unsure which project to pursue, or whether they should expand or stay focused. That’s where scenario analysis comes in.We can build…
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🚀 How to tell if a startup is really going to fly
A customer once asked us about investing in a tech startup.Both companies were from a construction systems background — so there were clear synergies.But the question was simple: “How do we know if this startup will actually fly?” One quick check we used is something called the Rule of 40. It’s a simple concept popularized…
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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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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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💡 “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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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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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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Thinking about investing in a startup? Ask these questions first.
At ORNA, we’ve been busy with a startup valuation this week—reminding us how important it is to ask the right questions before putting money into a new venture. Here’s a quick checklist we often refer to when evaluating a startup: ✅ What real problem are they solving—and for whom?✅ Do they have paying customers or…
ORNA Company Limited 