Author archives: John Eberhart

October 30 , 2019 | Posted by John Eberhart |

Normalization Adjustments are Essential in Valuation

Fine-tuning financial statements helps a business valuation expert compare the subject company’s performance to the financial performance of similar public or private companies. In turn, normalization is critical when gauging risk, estimating future earnings, quantifying valuation discounts and selecting guideline comparables to use in the market approach.

Types of adjustments

Normalization adjustments generally fall into…

April 30 , 2019 | Posted by John Eberhart |

How to Trim the Fat from Your Inventory

How to Trim the Fat from Your Inventory

Inventory is expensive, so it needs to be as lean as possible. Here are some ways to trim the fat from your inventory without compromising revenue and customer service.

Objective inventory counts

Effective inventory management starts with a physical inventory count. Accuracy is essential to knowing your…

August 14 , 2018 | Posted by John Eberhart |

How Do Valuations and Calculations Differ?

Most business valuation professional standards recognize two types of engagements: calculations and valuations. But in most litigation contexts — particularly when the business valuation professional will testify as an expert witness — only a full valuation report will suffice.

Conclusion of value vs. calculation of value

Valuation professionals follow different standards, depending on the organizations…

July 12 , 2018 | Posted by John Eberhart |

Combining Liquidity and Efficiency Metrics

Cash conversion cycle can be a useful management tool

How long does it take your company to convert raw materials to cash collected from customers? The cash conversion cycle is a financial metric that answers this critical question. Here’s a closer look into how it’s calculated and what it means.

Liquidity vs. turnover

Liquidity ratios…

February 16 , 2018 | Posted by John Eberhart |

7 Tactics for Boosting Your Bottom Line

Business owners and executives have two levers to choose from in attempting to boost their bottom lines: increasing sales or decreasing expenses. Whether they decide to pull either one of these — or both — management needs to have a handle on the current sales breakdown between product lines and customer segments and the expenses…

September 26 , 2017 | Posted by John Eberhart |

Why you should — or shouldn’t — pursue an acquisition

Like so many aspects of the national and global economies, merger and acquisition (M&A) activity tends to wax and wane. Nonetheless, billions of dollars continue to change hands annually, and an acquisition can be a great way to grow a business. So if one of these deals comes your way, it’s important to carefully consider…

June 16 , 2017 | Posted by John Eberhart |

Reviewing Your Company’s Buy-Sell Agreement

If you own a business and follow professional advice, you’ve likely established a buy-sell agreement in case you or a co-owner voluntarily or involuntarily leaves the company. Assuming this is true, remember that it’s not enough to draft an agreement and put it in a safe place. You need to review and perhaps revise the…