The questions of risk and return are at the foundation of business value. Think about it: if you are putting your hard earned money into an investment, you would like to see a handsome return. But there is no guarantee. In fact, depending on the investment, you could get the return you expect, get more… Continue Reading
Some businesses like secure long term contracts that ensure continued revenue streams far into the future. What is the effect of such contracts on business value? The answer is twofold. First, the contractually guaranteed revenue stream reduces business risk. You essentially have a very good idea of what the earnings from such a contract will… Continue Reading