Valuation: What is it? & Why is it Important?

By Tom Cramer

Sports serve as a frequent metaphor for business, and that concept is particularly relevant in one key aspect. In the final analysis, it is all about the points on the board. It is not about trying or effort or intention, it is about the balance sheet and the valuation your business will support. These are the concrete metrics that reflect the end results of all your efforts as a founder and as a manager. Providing a Baseline Most business owners and managers understand what a balance sheet is from a technical, accounting perspective. …

Intellectual Property and Your Firm’s Valuation

By Tom Cramer

There are few people who are not aware of the story of the “locked away formula” for Coca-Cola. In fact, the whole story is now a major exhibit at the World of Coca-Cola in Atlanta, Georgia. What few realize, however, is how the formula for one of the world’s most ubiquitous products has been protected – and remains secret – after more than 100 years. The formula is what is today generically referred to as Intellectual Property. Specifically, the formula for Coca-Cola is …