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Alternatives To Finance Your Business Print

Teaser_Board_-_Alternatives_to_Financing_Your_BusinessAlternatives To Finance Your Business? When you've put all the money you have into your business and still need more, where do you turn?  Join host David Wojcik and his panel of experts, Gerard Buckley (Angel Investor), Howard Johnson (VC Investor) and John Lombardi (Public Investing) as they discuss alternatives to finance your business.

 
How To Speak Money with Ali Velshi Print

Teaser_Board_-_How_To_Speak_MoneyHOW TO SPEAK MONEY.

How are you at speaking the language of money. Canadians speak differently than Americans. Women speak it differently than men. We sat down with Ali Velshi the business anchor from CNN and co-author of the book How To Speak Money to get details of how to converse in the language of finance.


 
The Best Compensation Plan Print

Do you know how much to pay a prospective employee? What's the right compensation structure? Our recruiting guru Marc Belaiche will give you the information that you need to develop the best compensation plan for your staff.

 
How is a Company Valued? Print

With baby boomers beginning to leave the companies they built from the ground up, the question of company worth is increasingly important. Our business valuation guru Douglas Craig explains the fundamentals of a company's worth.

I am frequently asked how a company is valued. Simply put, the value of a company is the value in today’s dollars of all the future benefits of ownership of the company. For operating companies, the future benefit comes from the earnings and cash flow associated with the assets owned by the subject company. The earnings or cash flow that are maintainable in the future are measured and then capitalized using an appropriate capitalization rate. Capitalizing means multiplying by the factor chosen. This capitalization rate or multiplier is essentially an assessment of the risk associated with the subject company and its ability to achieve the estimated earnings over time. Generally speaking, the higher the risk, the lower the valuation multiplier and the lower the value of the company. Risk is assessed both on external factors (i.e. those beyond control of management) and internal factors (i.e. those within the control of management).

For some other companies, the value comes more from assets themselves than from company’s earnings power. Examples are holding companies and real estate companies. For these companies, the assets are typically valued separately and the aggregate of the asset values forms the value of the company. Since there are often disposition costs, including income taxes, in the realization of the value of these assets, the estimated disposition costs are deducted from the aggregate gross values of the assets in determining the value of the company.

For a company that is no longer viable as a going concern, its value is determined using a liquidation approach. This involves a determination of the value of assets that would be sold on a piecemeal basis. The costs of closing down the company or business, including employee costs, are estimated and deducted from the liquidation value of the assets.