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Financially Simple Bizcast

The Financially Simple podcast is your one-stop resource for small business owners. Gain unique insights into growing, refining, and selling businesses. You will hear ways business owners have reduced their tax liabilities, increased their income, improved office morale, saved for the retirement of their dreams, and more.
Host Justin Goodbread is a serial entrepreneur, award-winning CFP® (Certified Financial Planning professional), CEPA® (Certified Exit Planning Advisor), and CVGA® (Certified Value Growth Advisor) with years of experience guiding business owners from start to exit in their business.

Jul 16, 2018

In episode 73 of Financially Simple, Justin looks at the key concepts of Value Growth.

There are various terms used in business that might be unfamiliar or confusing, and knowing the correct definitions of such terms is important for many reasons - not least, knowing the valuation of your business. Justin goes over some of the terminology relating to Value Growth of your business.

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00:27 - The Key Language to Understand in Value Growth

02:29 - The Terminology

03:46 - What is Cashflow?

05:51 - Normalising Cashflow

07:44 - Free Cashflow Calculation

09:34 - Working Capital

12:57 - Cap Rate vs. Discount Rate

15:38 - Risk Adjusted Cost of Debt

18:39 - Hurdle Rate

19:15 - Use of Capital

20:40 - Summary



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Neither Financially Simple, LLC nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances. Justin Goodbread, CEO of Heritage Investors, LLC, a Registered Investment Advisor, is an Investment Advisor Representative who offers advisory services through Heritage Investors. The information contained within the podcast is for informational purposes only and not considered investment advice. Seek help from a competent Financial Advisor.