In M&A, especially with owner-managed businesses, the term ‘Seller’s Discretionary Earnings’ (SDE) often comes up. It refers to all the income the owner/manager takes from the business, providing a clearer picture of its financial performance.
Author Archives: Thomas Cremona
Happy St Patrick’s Day
Wishing you a fun-filled St Patrick’s day!
Dividend
For some investors, dividends are the most important feature of their shareholding, while others prioritise capital appreciation. What’s your preference when it comes to investment goals?
Cashflow
Cash flow metrics help measure the inflow and outflow of cash, providing critical insights into a company’s ability to meet its obligations and fund growth. 💸📊
Interest coverage ratio
Tracking KPIs: Interest coverage ratios Start including it in your financial analysis to assess your ability to meet debt obligations and ensure long-term stability. The interest coverage ratio helps measure a company’s ability to pay interest on its debt, providing valuable insights into financial health and risk. 📊💡
Happy St Valentine’s Day
Feast of St Paul’s Shipwreck
idisav wishes all our Maltese clients a wonderful St. Paul’s Feast! For our international followers, today we celebrate St Paul—a key figure in Malta’s biblical history—and enjoy a national holiday in his honour!
Number of employees
I’m often surprised by how many companies overlook employee productivity analysis. Start including it in your management accounts to drive better decisions and optimise growth. Employee KPIs, like revenue per employee and turnover rates, are key to measuring workforce efficiency and productivity. 👥📈
Profit before tax
Profit Before Tax (PBT) provides an overview of operational efficiency and allows for better comparisons across companies, regardless of their tax structures 💼📊
Revenue
Revenue KPIs are key to tracking business growth, spotting trends, and evaluating strategy effectiveness. They help forecast future performance, build investor confidence, and ensure long-term success. 📊💡
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