If you turn to a commercial lender for a business loan, expect the focus to be on the company’s cash flow. In other words, the lender wants to know whether the business will be able to repay the loan from its profits and cash flow. Lender’s view of value: ability to repay plus valuable collateral Just… Continue Reading
Despite the current economic headwinds, many building maintenance service companies with established client contracts continue to thrive. There are some 92,300 such firms in the US alone, classified under the SIC code 7349. The industry segment contributes an impressive $28B in annual revenues to the economy employing just under 840,000 people. The typical janitorial services… Continue Reading
With a global focus on sustainable manufacturing, scrap metal recycling is a key growth industry segment. Classified under the SIC code 3339 and NAICS 331419, there are just under 8,200 metal recycling companies in the US alone. The industry as a whole generates some $21.1B in annual revenues and employs close to 75,600 people. Yet an average metal recycling firm is quite small… Continue Reading
Business people often ask us: “Are different business valuation methods used to value companies in different industries?” It is a very sensible question – after all the differences between, say, a manufacturing firm and a dental practice are profound. Professional business appraisers have developed an elegant, powerful framework to deal with this challenge. At the… Continue Reading