Accounts Receivable

What is meant by accounts receivable? Accounts receivable come into existence when a business offers products or services to its customers on credit. The amount of money that the customers owe to the company is written as an asset on the balance sheet. This asset represents the money that a customer has to pay to […]

Non Current Assets

If you are interested in the world of finance perhaps you´ve heard a few times the term Non Current Assets. If you want to expand your knowledge on this term, we encourage you to read the following article. What are non-current assets?   The assets that cannot be quickly converted into cash or cash equivalents […]

Key Client Risk

Key clients are great right? But is it risky? and how is it affecting your business’ value?   Today we want to address the importance of achieving a well-diversified client base to increase your business’ value and how the reliance on key clients can impact the risk perceived by investors in your business, and thus, […]

Discounted Cash Flow

Discounted cash flow is the foundation on which all other valuation approaches are built. This method is commonly used by practitioners to derive a conclusion of value of an asset as part of the ‘Income Approach’ which is one of the three ways of approaching a business valuation. In this short article, we will explain […]

accounts payable

Accounts Payable

What is Accounts Payable and How to Manage Them? When a business purchases a service or a product from a supplier (not paying cash at the time), the payment amounts are recorded into the company’s financial statements and released when the due date states on the invoice (often 30 days later). The record of unpaid […]

balance sheet

Balance Sheet

What is the Balance Sheet of a Company? The balance sheet is the ‘statement of position’ of the company. The regular review and analysis of the financial position of your company is important to keep your business on the right track. Without the knowledge of the economic health and investment return of your company, it […]

income approach

Income Approach

The income approach is one the most used methods to estimate the value of a business. Within this approach, there are two main methods, the Discounted Cash Flow Method and Capitalization of Cash Flows Method. In this post, we will take a closer look into how this approach works and what it means. Let’s get […]

asset approach

Asset Approach

If you are interested in the world of finance and business valuations, you may have heard a few times the term “Asset Approach”. If you are interested in expanding your knowledge regarding this topic, we encourage you to read the following article. Using an Asset Approach to Value a Company It’s understandable if you have […]

valuing goodwill

Valuing Goodwill

Valuing goodwill can be a tricky one, and probably a bit misunderstood. However, it’s one of those important components in the valuation of a business that simply can’t be overlooked. In this blog, we’ll look at some of the essential components of goodwill, so you can get a better understanding of how goodwill works and […]