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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

Large companies don’t acquire small companies for their financials. Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Pundits couldn’t agree how to analyze the sale of Instagram to Facebook.

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5 Ways to Improve Your Business Financial Management

Up and Running

Ongoing financial planning and forecasting are critical for business growth. But as a small business owner, it can be difficult to do any of this thoroughly and efficiently. Maybe you’re not a numbers person or feel that it takes time away from you actually running your business.

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15 Ways A Brand New Small Business Can Look Established

YoungUpstarts

Here’s the bottom line: This affects anyone and everyone that comes in contact with your business and it’s a huge deal to your bottom line. Hire a professional, or at the least, use inexpensive design software like Tailor Brands to create a great logo yourself. Or reviews! You need reviews to look legitimate.

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4 Reasons Why You Should Have An Accounting Process In Your Business

YoungUpstarts

Unfortunately, most small business owners are not accountants and find themselves neglecting this function completely. However, accounting is one area of your business you shouldn’t ignore. Accounting allows you to review and analyze the performance of your company. Meaning, your business’ profits are taxable by you.

CPA 100
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Rules of Thumb Business Valuation Methods Explained

Up and Running

For estimating the value of a business, the process involves applying a multiple to an economic benefit of a specific industry. Metrics such as discretionary cash flow or business revenue are used. When to use the rules of thumb for a business valuation? This is the most common multiple to value small businesses.

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The Key Elements of the Financial Plan

Up and Running

But whether you’re thinking of starting a business, expanding your current business, or just want to understand your current business better, there are a few key financial items that you should definitely include: Profit and loss statement. Balance sheet. and maybe some business ratios and/or a break-even analysis.

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Lean Planning Drives Growth For Small Business

Up and Running

These days more than ever, as a business owner and entrepreneur, you need to innovate or die. This mantra is most true for any business in the technology sector. The pressure that a small business owner has to leverage innovation into growth is only emphasized by the difficult economic climate.

Lean 83