Comments for Business Tools Blog http://businesstoolsblog.com Fri, 25 Jul 2008 00:43:20 +0000 http://wordpress.org/?v=2.5 Comment on How much is that Company worth? by Thomas http://businesstoolsblog.com/2008/07/how-much-is-a-company-worth/#comment-374 Thomas Thu, 24 Jul 2008 22:10:55 +0000 http://businesstoolsblog.com/?p=165#comment-374 The best way to value a company is using a DCF. It gets as close to a fundamental valuation as is possible. All other methodologies are proxies to this method. There are a few questions that you can ask yourself that will help you figure out whether you need to bring in professional help or not: 1. Why do you use EBITDA as opposed to other earnings measures? There are good reasons for and against EBITDA. Unfortunately because this appears in banker books often, the general business community has adopted it, but without a good understanding of when it does and does not apply. 2. How would you estimate your (and your target's) equity risk premium? A real business owner has an innate understanding of what risk premium to use and why. Exploring this question will help define perspectives about your own business as well as the target. The best way to value a company is using a DCF. It gets as close to a fundamental valuation as is possible. All other methodologies are proxies to this method.
There are a few questions that you can ask yourself that will help you figure out whether you need to bring in professional help or not:
1. Why do you use EBITDA as opposed to other earnings measures? There are good reasons for and against EBITDA. Unfortunately because this appears in banker books often, the general business community has adopted it, but without a good understanding of when it does and does not apply.
2. How would you estimate your (and your target’s) equity risk premium? A real business owner has an innate understanding of what risk premium to use and why. Exploring this question will help define perspectives about your own business as well as the target.

]]> Comment on Why College Football Should be Abolished - a writing lesson for 1950s college students by ELH http://businesstoolsblog.com/2008/07/why-college-football-should-be-abolished-a-writing-lesson-for-1950s-college-students/#comment-372 ELH Wed, 23 Jul 2008 14:01:01 +0000 http://businesstoolsblog.com/?p=158#comment-372 As a corollary - I'd think this quote attributed to Albert Einstein is fitting: "If you can't explain it simply, you don't understand it well enough." The key word being "explain". If I know there is a $100K accounting adjustment, summarizing this by saying "$100K variance due to accounting adjustment." is NOT an explanation. Great post - I'm going to use the 9 lessons in my Young Men of Valor class! As a corollary - I’d think this quote attributed to Albert Einstein is fitting:

“If you can’t explain it simply, you don’t understand it well enough.”

The key word being “explain”. If I know there is a $100K accounting adjustment, summarizing this by saying “$100K variance due to accounting adjustment.” is NOT an explanation.

Great post - I’m going to use the 9 lessons in my Young Men of Valor class!

]]> Comment on Debits and Credits - Accounting 101 by Laura Martinez http://businesstoolsblog.com/2008/07/debits-and-credits-accounting-101/#comment-360 Laura Martinez Thu, 17 Jul 2008 16:56:02 +0000 http://businesstoolsblog.com/?p=147#comment-360 Sandi-Just wondering when you sleep, :) Great post! Sandi-Just wondering when you sleep, :) Great post!

]]> Comment on Debits and Credits - Accounting 101 by “The Bear” on Business » Blog Archive » Sandi Mays’ roadmap to Bonus Payouts http://businesstoolsblog.com/2008/07/debits-and-credits-accounting-101/#comment-354 “The Bear” on Business » Blog Archive » Sandi Mays’ roadmap to Bonus Payouts Wed, 16 Jul 2008 23:22:55 +0000 http://businesstoolsblog.com/?p=147#comment-354 [...] Group and Envysion teams:  I encourage you to follow the series that Sandi is doing on Debits and Credits – Accounting 101.  My guess is this will give you some practical insights in what you can do [...] […] Group and Envysion teams:  I encourage you to follow the series that Sandi is doing on Debits and Credits – Accounting 101.  My guess is this will give you some practical insights in what you can do […]

]]> Comment on Undo, the unsung hero! by Dave http://businesstoolsblog.com/2008/07/undo-the-unsung-hero/#comment-353 Dave Wed, 16 Jul 2008 21:19:50 +0000 http://businesstoolsblog.com/?p=146#comment-353 Sandi, I got snagit! and you're right it's a great tool. Also wanted to pass along this site. I use several of these programs and they are great, and free, open source, actively updated by the programming community. I use Firefox, Thunderbird, AVG, several others. Have not had a crash or virus related issue for years. Check it out: http://techie-buzz.com/collections/35-amazing-softwares-that-are-free.html Sandi, I got snagit! and you’re right it’s a great tool.
Also wanted to pass along this site. I use several of these programs and they are great, and free, open source, actively updated by the programming community.

I use Firefox, Thunderbird, AVG, several others. Have not had a crash or virus related issue for years.

Check it out: http://techie-buzz.com/collections/35-amazing-softwares-that-are-free.html

]]> Comment on Valuable Business Lesson from Ron Beaumont by Joe http://businesstoolsblog.com/2008/07/valuable-business-lesson-from-ron-beaumont/#comment-352 Joe Wed, 16 Jul 2008 20:46:48 +0000 http://businesstoolsblog.com/?p=155#comment-352 Good one - and should you find yourself in a situation where you have been fortunate enough to identify the problem causing issue - What have you done to help ensure others won't make the same mistake? Take the time reflect, do some root cause and update your tools such as process, models and index's... Use an internal wiki or blog with feeds to help groups stay on top of feedback and make sure it get's applied - foster/create a continuous improvement culture! Good one - and should you find yourself in a situation where you have been fortunate enough to identify the problem causing issue - What have you done to help ensure others won’t make the same mistake? Take the time reflect, do some root cause and update your tools such as process, models and index’s… Use an internal wiki or blog with feeds to help groups stay on top of feedback and make sure it get’s applied - foster/create a continuous improvement culture!

]]> Comment on Undo, the unsung hero! by Sandi Mays http://businesstoolsblog.com/2008/07/undo-the-unsung-hero/#comment-350 Sandi Mays Mon, 14 Jul 2008 17:21:04 +0000 http://businesstoolsblog.com/?p=146#comment-350 Ori - thank you! That is very interesting. Ori - thank you! That is very interesting.

]]> Comment on Undo, the unsung hero! by Ori http://businesstoolsblog.com/2008/07/undo-the-unsung-hero/#comment-349 Ori Mon, 14 Jul 2008 17:14:47 +0000 http://businesstoolsblog.com/?p=146#comment-349 Undo was actually available on the Xerox Star workstation , released in 1981. The Lisa, and later the Macintosh were both based (or "inspired") by work done at Xerox PARC. Both Steve Jobs and Bill Gates were aware of that work, and given demonstrations of the technology. The Xerox Star wasn't even the first computer with a modern GUI - Xerox built the Alto back in 1973, but never sold it. Some of them were donated to universities, though. I don't know whether the Alto had an Undo command, though - it's safe to assume that Undo was introduced somewhere before 1981, in any case. Undo was actually available on the Xerox Star workstation , released in 1981. The Lisa, and later the Macintosh were both based (or “inspired”) by work done at Xerox PARC. Both Steve Jobs and Bill Gates were aware of that work, and given demonstrations of the technology.

The Xerox Star wasn’t even the first computer with a modern GUI - Xerox built the Alto back in 1973, but never sold it. Some of them were donated to universities, though. I don’t know whether the Alto had an Undo command, though - it’s safe to assume that Undo was introduced somewhere before 1981, in any case.

]]> Comment on Undo, the unsung hero! by “The Bear” on Business » Blog Archive » Undo–Sandi Mays’ Unsung Hero http://businesstoolsblog.com/2008/07/undo-the-unsung-hero/#comment-343 “The Bear” on Business » Blog Archive » Undo–Sandi Mays’ Unsung Hero Sun, 13 Jul 2008 07:45:42 +0000 http://businesstoolsblog.com/?p=146#comment-343 [...] Mays has a fun-to-read post on her Business Tools Blog site.  I recall the days before Undo was invented. I agree, Undo is the biggest unsung hero — [...] […] Mays has a fun-to-read post on her Business Tools Blog site.  I recall the days before Undo was invented. I agree, Undo is the biggest unsung hero — […]

]]> Comment on Undo, the unsung hero! by Michael Wilson http://businesstoolsblog.com/2008/07/undo-the-unsung-hero/#comment-318 Michael Wilson Thu, 10 Jul 2008 00:26:27 +0000 http://businesstoolsblog.com/?p=146#comment-318 I'm in absolute full agreement with this one. I can't quantify how much time undo has saved me. Bravo to the developer! I’m in absolute full agreement with this one. I can’t quantify how much time undo has saved me. Bravo to the developer!

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