Both business appraisers and market participants who buy or sell companies typically consider a number of adjustments to a company’s income statement in their valuation processes. These adjustments are called normalizing adjustment, because they take reported financial statements and make adjustments to see what “normal” earnings look like.

Are the earnings in your business identifiable? Are you clear regarding what portion of the revenue stream compensates you and your fellow owners for their labor and what portion is a return on your investments in your business? I’ve often said, there are worse things in life than paying taxes. If you pay taxes on your company’s earnings, no one will question them. They are identifiable earnings and the only kind of earnings that buyers will pay for are identifiable earnings.

Fourth of July, 2014. It is a couple of days past the mid-year point in the year, but a wonderful opportunity to take stock. Yesterday, I sat alone for a few hours to reflect on the first half of 2014 and to consider the second half in light of my thoughts. Have you?

June 6th. A remembrance of D-Day. And a day of sixes for me.

Last month (April 2014) attended and spoke at the Joint Conference of the AICPA and the American Academy of Matrimonial Lawyers in Las Vegas.  It was a fun conference that had record attendance for this bi-annual event. While in Las Vegas, I had a chance to attend one show with a Memphis theme and another with […]

Over the years, I’ve learned a thing or two about accounts receivable, which may not sound like a typical topic for this blog. Many business owners take their accounts receivable and the collection of the A/R for granted. We shouldn’t do so. Let me share a few thoughts about this seemingly mundane topic and how the management of accounts receivable relates to business value. In the final analysis, collection of accounts receivable requires a diligent attitude and focus on the part of senior management, and implementation at the lowest level possible levels in our organizations.

This Memorial Day I am remembering, not only those who died serving our nation, but all those who have served and those currently serving.

Do important things when and while you can. In business and life, this idea can be critically important. Unfortunately, many of us get caught up in the seemingly urgent aspects of our business and personal lives that keep us from focusing on the few really important things that need to be done at the present time to help insure a better future.

If you employ a questioning attitude, you can expand on what is known in many ways, to achieve what would otherwise have been unknown. And the previously unknown builds on our knowledge and ability to learn and do more. The example presented in this post is pretty simple, but powerful. You can do similar things by asking questions about what you see and hear and then comparing what you learn with what you already know or can infer.

Perfect practice is more than simple repetition. Perfect practice means doing whatever it takes to improve your craft. Perfect practice means grappling with your craft and growing with it. Perfect practice takes you where you have never been before and separates you from most of your competition who believe that mere practice makes perfect.