Author name: audienceconnector@gmail.com

In the world of business brokerage and mergers and acquisitions (M&A), the most commonly cited metric is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). It is often used as a shorthand for a company’s financial health and the primary basis for “multiples” (e.g., a business being valued at 5x EBITDA). However, there is a […]

In the traditional narrative of entrepreneurship, growth is the ultimate goal. We celebrate the doubling of turnover and the landing of massive, market-shifting contracts. However, from a structural financial perspective, rapid scaling is often the most dangerous phase of a business’s lifecycle. This is because of a mechanical phenomenon known as the Cash Gap (or

There is a dangerous seduction in a healthy Income Statement. A business owner sees a “Net Profit” line that looks robust and assumes the business is thriving. Yet, it is entirely possible—and alarmingly common for a business to be highly profitable and simultaneously on the verge of bankruptcy. This phenomenon is known as Profitable Insolvency.