Increase the Value of Your Company
December 2, 2011 8:13 pmIn a purely economic sense, the value of any for-profit business is the present value of its cash flows. A lot more goes into the valuation of a business and there are exceptions where businesses are valued based on metrics that most ordinary Americans could never understand (just think back to the internet bubble). Factors such as reputation, patents, brand, organizational health and new product pipelines are all considered when valuing a company, but all of these elements are only measured because of their expected effect on the future cash flows of the business. So, how do you increase the value of your enterprise? Let’s start from the end and work our way back. To increase the value of your organization you need to increase the cash flows that a reasonable buyer can expect from your company in the future. ... View Article