Tag: balance sheet

Pitch Your Business Essentials: Financially Prepare Your Business for the Perfect Pitch

Posted by WFG – September 9, 2011

In order to pitch your business successfully to an private investor, it is important to ensure the financial accounts are correctly recorded and presented.

Total Revenue is the key when you need to pitch your business

The total revenue is extremely important when it comes to a business pitch, especially for start-up business. Profitable or not, the total revenue gives a good idea of whether the product or service your company offers is widely accepted by the market. A business pitch may have innovative ideas, Read the rest of this article

Sears Canada Under Threat

Posted by WFG – June 28, 2011

According to analysts, Target’s invasion of Canada is continuing with Sears next on the list. This is due to their declining consumer franchise and the cautious customer in today’s market. Sears Canada has been under pressure from emerging competitors for some time and will continue you do so in the near future. And with the company’s market share dropping by 25 basis points per year over the last 6 years, despite the company benefitting from cost reductions, it doesn’t look promising.

Despite this, Sears Canada a new president and chief executive have been hired. The company has a ‘strong’ balance sheet and what’s labeled as a good fee cash flow. The controlling shareholder, and the company, has been picking up shares and their value may surface. That is, if there’s a bid for Sears Canada’s minority stake.

With Target’s acquisition of Zellers their expansion is growing every year. This leaves only one option remains for Sears Canada, and that’s to start picking up their profits immediatly. Sears Canada may have new management, but they have a tough job on their hands and need to move fast.

Analyzing an Investment Portfolio

Posted by WFG – June 21, 2011

Creating a corporate valuation starts with understanding their assets and investment portfolio. This is one of the most straightforward ways of valuing a company. And in some regions the most accepted way.

Many state that asset value is a mystery. Some company assets are reported on the balance sheet, though many are not. And in theory the valuation of all assets, including the ones that go unreported, equals the real value of the company. When dividing this value into total shares outstanding it should yield the maximum price to pay each share. The real question should be how long does it take to complete this research, and how much does it cost? The costs of analysis shouldn’t exceed the investment returns.

To determine the valuation of assets in a financial statement you will need to understand the accounting standards used. In addition to this the valuation minded investor also needs to understand the standard used for asset valuation. Including the values not reflected on a balance sheet. The best formula for this is

Assets – Liabilities = Equity

The asset value is offset by the liabilities, leaving the remaining value as equity. Or to quote the Financial Accounting Standards Board, who state that an asset is a “present economic resource to which an entity has a present right or other privileged access”.