How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

If you’re not a numbers person, finance is daunting. But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business.

Women, Finance the World You Want

Harvard Business Review

So if you feel uncomfortable as an investor, here are two bullets to pack in your pistol: Investing is about financing dreams. Some of the dreams I finance are close to home. Investing also finances the kind of world we want. Finance GenderWomen are gaining financial independence to an unprecedented degree — they now make up the majority of college graduates, are nearly half of the labor force and are becoming the primary earners in many households.

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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.

Entrepreneurs Need a Better Way to Cash Out

Harvard Business Review

But analysts are judging EBITDA, P/E ratios, quarterly growth, and cashflows – which don’t always correlate with long-term value creation. Entrepreneurship Finance The most successful, visionary entrepreneurs dream not of millions of dollars, but of a world where their products change culture. But in technology startups, particularly venture-backed technology startups, the current investment climate does not always support that vision.

The Secrets to TripAdvisor's Impressive Scale

Harvard Business Review

and EBITDA margins are 47%. The chart below shows their financial performance over the last few years, with forecasted 2012 revenue of $767M and EBITDA of $339M. market cap is 6x revenue and 13x EBITDA, so not insane multiples on a comparable basis. Scaling is hard. Really hard.

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.

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Don’t Turn Your Sales Team Loose Without a Strategy

Harvard Business Review

Financing needs are driven by the cash on hand and the working capital required to conduct and grow the business. Business results were outstanding: EBITDA more than doubled in the first year and ROIC increased almost 300%, with fewer sales people.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Employees frequently attribute breakdowns to incompetence or bad faith on the part of colleagues in other departments: "Those bozos in headquarters [or finance or marketing] screw everything up." Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA. Successful companies shape their high-level strategies by relying not on complicated frameworks but on simple rules of thumb.