article thumbnail

Which MBAs Make More: Consultants or Small-Business Owners?

Harvard Business Review

The value of that carried interest, of course, depends on the performance of the business, its size, amount of debt used to finance the acquisition and the eventual pricing of a subsequent sale. million EBITDA company for 4x paying $6 million and using 50% debt financing. We’ll also assume the entrepreneur acquired a $1.5

article thumbnail

The INs and OUTs of Business Literacy

HR Digest

An effective financial literacy program should clear concepts of finance and accounting in simple terms with examples that are relevant to the organization’s day-to-day operations. Joe Knight is widely considered as one of the world’s most influential finance and business literacy leaders. First, share the numbers.

Finance 63
article thumbnail

Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Managers in these organizations translate corporate objectives into a few straightforward guidelines that help employees make on-the-spot decisions and adapt to constantly shifting environments, while keeping the big picture in mind. It illustrates how simple rules can help companies shape strategy in an uncertain environment.