Buying or selling a business can be scary. The key to success in buying another company is knowing the value that company will bring to your existing portfolio and paying a price to maximize that value. This is not a simple task, by any means. There are many factors to consider when determining the price you should pay for an acquisition; be sure to cover all the bases and conduct a thorough valuation of the company you’re considering before making an offer.
When you reach out to a consulting firm, chances are you know you need help. You’ll probably have a lot of questions, including how much the service will cost and what exactly you’d be paying for. So, how do you decide which firm will do the best job for you without breaking the bank?
“No man is an island.” English poet John Donne addressed the basic human need to be a part of a community to thrive. Even before the Industrial Revolution, people recognized that everybody has a role to play and that collaboration is key to a functional society. This established interdependence extends to many aspects of our lives, primarily in the workplace, where three types of interdependence have emerged.
Italian philosopher and economist, Vilfredo Federico Damaso Pareto, developed what has become known as the 80/20 principle, or the Pareto principle. After observing that 20% of the pea plants in his garden produced 80% of the healthy pods, Pareto turned his attention to wealth distribution and found that just 20% of the population owned 80% of Italy’s land. After gathering data from various fields, he arrived at the general principle that 20% of action drives 80% of results. This pattern can be observed not only in economics and gardening but also in business and even personal habits.