Blogs

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What Adjustments Are Usually Made to EBITDA and Why?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely used financial metric that provides a clearer picture of a company’s operating performance by excluding non-operational expenses. But have you ever wondered if EBITDA tells the full story of your company’s financial health? Are there factors that might distort this metric and, consequently, your…

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How Interest Rates Impact Your Business: What Every Owner Needs to Know

Interest rates are a fundamental aspect of the economy, influencing everything from consumer behavior to corporate investment strategies. For business owners, understanding how interest rates affect their operations, costs, and strategic decisions is crucial for maintaining financial health and achieving long-term growth.  The Basics of Interest Rates Interest rates represent the cost of borrowing money.…

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Key Adjustments in a Purchase Agreement: What Business Owners Need to Know

When negotiating a purchase agreement, several adjustments are typically made to ensure the transaction is fair and reflects the true value of the business being bought or sold. These adjustments can have significant implications for both parties involved.  Working Capital Adjustments Working capital adjustments ensure that the buyer receives the business with a normal level…

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You DON’T Need a Fractional CFO. Here’s Why.

In recent years, the concept of a Fractional CFO has gained significant traction among small to mid-sized businesses. The idea of having a high-level financial expert on a part-time basis might sound appealing, but is it truly necessary? Let’s delve into the reasons why you might think you don’t need a Fractional CFO, while subtly…

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Seven Game-Changing Deductions for Your Business

As a business owner, maximizing tax deductions is crucial for optimizing your financial strategy and reducing your tax liability. Understanding the major write-offs available can significantly impact on your bottom line. Here are the most substantial business write-offs that you should consider: 1. Depreciation of Assets Depreciation allows you to write off the cost of…

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I Want to Exit My Business. Now What?

Exiting a business is a significant decision that requires careful planning and consideration. Whether you are looking to retire, pursue new opportunities, or simply step away, having a well-thought-out exit strategy is crucial. This article will cover what an exit strategy is, when it is used, its importance, and the steps involved in exiting your…

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Debt Financing: Strategies for Reducing and Refinancing Business Debt

According to a March 2024 Federal Reserve survey, 39% of small businesses in the US have $100,000 or more in debt. However, 34% of respondents said that making debt payments is a challenge, and 54% of firms say that higher rates have increased their debt costs.  With the ever-increasing number of businesses incurring debt, it…

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Capitalizing and Expensing Explained: Transform Your Financial Strategy Today

Have you ever wondered how some businesses seem to effortlessly maximize their profits while others struggle? Could the secret lie in the way they handle their finances? Effective financial management is the cornerstone of business success, and a key component of this is understanding the often-overlooked concepts of capitalizing and expensing. These powerful accounting practices…

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The Top 3 Methods To Value Your Company

What are the Three Ways to Value a Company? Valuing a company is a crucial step for business owners, whether you’re planning to sell, attract investors, or simply want to understand your business’s worth. There are several methods to determine a company’s value, each with its own set of principles and applications. This article will…

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The Critical Consequences of Not Securing VC Funding

For early-stage startups, failing to secure VC funding can lead to: What Do VC Investors Look For? Understanding the underlying concerns and objectives of VC investors can significantly enhance a startup’s approach to securing investment. Investors are primarily focused on: The VC Due Diligence Process The due diligence process allows investors to comprehensively assess a…

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Navigating the Due Diligence Process: A Guide for Small to Medium-Sized Business Owners

Embarking on the journey of selling your business to a private equity investor requires a deep dive into the essence of your operation and its market positioning. Imagine standing at a crossroads where every decision can pivot the future of your enterprise. How does this make you feel? Perhaps you’re concerned about what investors might…

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The Crucial Role of Financial Reporting and KPI Analysis in Navigating Business Challenges

In the bustling world of small business, it’s easy to get caught up in the day-to-day operations and lose sight of the bigger picture. Many entrepreneurs pride themselves on their gut instincts and a general sense of how their business is trending. Yet, beneath this surface-level confidence often lies a bedrock of uncertainty and missed…