Your financial metrics tell a story about your business’s fiscal health. As a business owner, you’re almost certainly reading them differently than a potential investor or funding source. Where you might see profitability and growth, they’re evaluating likely risks and returns. Understanding which numbers investors care about (and why) can mean the difference between a […]
Search Results for: valuation
Costly M&A Pitfalls (and How to Protect Your Deal)
One of the most frequent questions we receive from our business clients is about the common pitfalls in mergers and acquisitions (M&A) and how to avoid them. At Magone & Company, we advise many clients through M&A transactions, and here are the critical issues and key vulnerabilities that demand attention: Valuation blind spots I’ve watched […]
Financial Reporting 101 for Small Business Owners
New to running a business? While passion and hard work are crucial, financial reporting is integral to your company’s success. Financial reports are detailed documents that provide a thorough overview of your company’s financial performance and position. They can help you: Make strategic decisions Ensure compliance with tax and legal requirements Attract and secure potential […]
The Business Owner’s Accounting Glossary
Understanding accounting terminology isn’t just for accountants — it’s a critical skill for every entrepreneur. By becoming more familiar with key financial terms, you can more clearly communicate with financial professionals (think lenders and bankers as well as your CPA) as you strategically manage your financials. Here’s a list of 12 accounting terms you should […]
The IRS’ “Dirty Dozen” — What Tops This Year’s List? Part 2
Nearly one in three Americans (31%) report being a victim of online financial fraud or cybercrime. When it comes to protecting your money and your identity, knowledge is power. Here’s a recap of the last six scams on the IRS’s 2024 “dirty dozen” list. 7. “Ghost” tax return preparers. Be wary of “professionals” who claim […]
Cracking the Code on Seller’s Discretionary Cash Flow
Discounted cash flow analysis? Price-to-earnings multiple? When breaking down the true value of your business, traditional valuation models consider a variety of industry metrics — but they don’t always work best for small businesses. That’s why some valuation advisors use an alternative measure: Seller’s discretionary cash flow (SDCF). While it’s an option, is SDCF the […]