N2Growth Blog

JANUARY 5, 2020

Look for linkages between EBITDA and your take-home pay. Coming into a company in hypergrowth? Consider involving equity, phantom equity, or revenue-based targets to your package. Managing for profitability? Across markets, incentive-based compensation tends to increase as the scope of responsibility increases.

Execution 218

Execution Tips Incentives EBITDA 218

Terry Starbucker

JANUARY 3, 2010

They believe that a base salary pays the bills, whereas variable compensation, including earnings before interest, taxes, dividends and amortization (EBITDA)-based bonuses, motivates employees to challenge themselves and increase their contribution to the ?rm rm on a consistent basis. These leaders ?nd

Leadership 418

Leadership Ethics Learning-by-Doing Course 418

The Horizons Tracker

JUNE 21, 2023

revenues, net income, or EBITDA).” Earnouts are “an arrangement where part of the merger consideration is made contingent on a future event (e.g., drug approval or first product sale) or (financial) performance measure (e.g.,

EBITDA 115

EBITDA Price Marketing Participative 115

CO2

JUNE 7, 2011

Leaders are trained to identify when revenues, EBITDA, number of new customers, and retention of customers are up or down. They are less likely to receive training in how to identify values conflicts. . Values conflicts can have a tremendous impact on employee engagement, employee retention, and alignment.

EBITDA 79

EBITDA Training Report Environment 79

CO2

APRIL 18, 2012

For example if you discuss EBITDA (Earnings before interest tax and depreciation) don’t assume that all your employees will understand what you mean. When it has to do with change people will imagine the worst so get it all out at once. 3) Provide conceptual tools – During meeting describe the basic principles of strategic planning.

Strategic Planning 145

Strategic Planning Planning Strategy Balanced Scorecard 145

CO2

JANUARY 22, 2024

Not to mention, CEO Coaching boasts of clients who’ve achieved a staggering 78% average compound annual EBITDA Growth Rate​ ​. Vistage reports that their coached CEOs saw an uptick in annual revenue by 4.6% amidst a global downturn—a testament to the power of executive coaching​ ​.

Executive Coaching 78

Executive Coaching Course Execution EBITDA 78

The Center For Leadership Studies

NOVEMBER 23, 2020

EBITDA (earnings before interest, taxes, depreciation and amortization) still matters as does the P&L (profit and loss statement) and the deadline for 2021 projections (who can imagine?!) Even as we stretch to support our colleagues, the work goes on! Deadlines and deliverables must be met. Customers expect uninterrupted excellence.

Emotional Intelligence 98

Emotional Intelligence Self-aware P&L Leadership 98

HR Digest

MAY 11, 2022

Even on an EBITDA basis, the company continued to post losses. . However, the employee did not initially dispute the claim that 2,500 Carvana employee layoffs were conducted via Zoom. Carvana Earnings and Losses. Caravana as a company has been bleeding money right from the start.

EBITDA 52

EBITDA Retail Fixed Costs Restructuring 52

HR Digest

FEBRUARY 1, 2024

For a tranche to vest, Tesla’s market capitalization must increase by $50 billion and Tesla must achieve either an adjusted EBITDA target or a revenue target in four consecutive fiscal quarters. With a $55.8 billion maximum value and $2.6

Proposal 52

Proposal EBITDA Loyalty Planning 52

Harvard Business Review

APRIL 27, 2012

Now the largest beer company in the world, AB InBev reported a double digit EBITDA growth rate and almost 30% growth in earnings per share. The Brazilian company AmBev, already at 20% EBITDA in 2000, increased its margins to a whopping 36% in 2003. Anheuser's EBITDA in 2007, prior to its acquisition, was 23%.

EBITDA 14

EBITDA Globalization Depreciation Open-book 14

First Friday Book Synopsis

NOVEMBER 3, 2011

Tom Stewart is Booz & Company’s Chief Marketing & Knowledge Officer. In a recent email update, he asks several intriguing questions: Are there CEOs anywhere in the world who want their companies to become less innovative? Is anyone calling on employees to do a better job of thinking inside the box?

Innovation 114

Innovation Globalization CEO Company 114

Harvard Business Review

JUNE 29, 2012

They clearly generate higher growth in revenue, EBITDA, and EBITDA/EV. Companies in the top 20% of risk maturity generated three times the level of EBITDA as those in the bottom 20%. Financial performance is highly connected to the level of integration and coordination across risk, control, and compliance functions.

Risk Management 15

Risk Management Maturity EBITDA Management 15

Strategy Driven

MARCH 18, 2011

times EBITDA (compared to average multiples of 15 at the time). It divested a number of personal care and confectionary lines (e.g., Schick razors and Trident) and acquired other products (e.g., Purell) consistent with its chosen way to play. billion, or 20.6 SD : How can capabilities-driven strategy be applied to cutting costs?

Resources 51

Resources Industry System Strategy 51

Harvard Business Review

JANUARY 28, 2013

But if you also throw in acronyms such as ABC ("activity-based costing"), EBITDA ("earnings before interest, tax, depreciation, and amortization"), and VBM ("value-based management"), only the accountants in your audience will follow you — you'll lose everyone else. Use them judiciously.

VBM 13

VBM EBITDA Document Depreciation 13

Harvard Business Review

SEPTEMBER 26, 2011

Corporate development groups may have to accept that EBITDA multiple valuations may not be appropriate when buying a category creator. Category creation requires innovation teams to re-think their role beyond just creating new products and services. Beyond the economics, category creation may be the most fun you can have in business.

B2C 15

B2C B2B Strategy Waterman 15

Harvard Business Review

DECEMBER 10, 2012

Pfizer divested its consumer health care business in 2006, selling it to J&J for more than 20x EBITDA. Jeff Immelt was happy to free up some of the capital GE had in NBC/Universal two years ago; how long before he decides to free up the rest? Pfizer Inc. Pfizer Consumer Healthcare. A spectacular move — or was it?

Due Diligence 16

Due Diligence EBITDA Health Care Gordon 16

Harvard Business Review

APRIL 5, 2017

For example, the pervasive use of EBITDA (earnings before interest, tax, depreciation, and amortization) to reflect a company’s performance assumes that the company can operate without having to pay for these costs (I, T, and DA).

EPS 12

EPS Metrics Depreciation Short-term 12

Harvard Business Review

OCTOBER 2, 2012

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. As a result, gross margins are very high at 98% (not a typo!) Think about that.

EBITDA 11

EBITDA Engineering Travel Business Model 11

Harvard Business Review

MARCH 28, 2013

But consider this equally inscrutable language: The value is multiples of EBITDA, assuming the back-office cost synergy targets are achievable. Yet to our veterans it's clear — they know where they can get food, fuel, and ammunition. The military, of course, is known for its reliance on jargon and acronyms.

EBITDA 14

EBITDA Human Resources McKinsey Cost 14

Harvard Business Review

AUGUST 7, 2012

billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. The chart below shows the company's strong financial performance from 2009 to the present. In 2012, analysts forecast the company will achieve nearly $1.5 How did Akamai do it? Founding Akamai.

P&L 15

P&L Lewin EBITDA Ries 15

Harvard Business Review

MAY 22, 2014

To be clear, Whole Foods’s financials are still healthy: in FY 2013, its revenue was $12.9B, EBITDA $1.2B, and earnings per share increased by 19%. Whole Foods has a bad taste in its mouth – it recently had to revise both its sales growth and earnings for the third time in six months. As a result, its stock dropped by 19% in one day.

Price 10

Price Marketing EBITDA Wilde 10

Harvard Business Review

NOVEMBER 19, 2015

times their earnings before interest, tax, depreciation and amortization (EBITDA). By 2014, target price to EBITDA ratios had already fallen to 6.9 times EBITDA. In 2011, when the number of M&A deals reached its peak in Brazil, the average price of publicly traded companies was 9.7

Strategy 8

Strategy Depreciation EBITDA Price 8

Harvard Business Review

DECEMBER 11, 2012

EBITDA (earnings before interest, taxes, depreciation, and amortization) is the equivalent of corporate blood pressure. Barnes & Noble had weak blood pressure in 2009, but recently its EBITDA has shown signs of recovery, increasing more than 15% to $65 million in its most recent quarter. Look at profit margin trends.

EBITDA 8

EBITDA How To Crisis Depreciation 8

Harvard Business Review

JUNE 9, 2014

But analysts are judging EBITDA, P/E ratios, quarterly growth, and cashflows – which don’t always correlate with long-term value creation. Lately, some companies have been able to sneak by with lower valuations, because of sufficiently impressive growth. And, too often, our obsession with these short-term metrics has the opposite effect.

Entrepreneur 10

Entrepreneur Venture Capitalist Mezzanine Short-term 10

Harvard Business Review

FEBRUARY 24, 2011

The economics work: Trading the $25 per square foot upfront cost (plus a cost for the land and the infrastructure) for the annuitization of the "margin" gained (in many cases this is an EBITDA of about 40%) from daily consumption (which may well be $300/year and per capita), is an easily fundable proposition, especially if it can be harnessed from (..)

Suri 15

Suri Construction Class EBITDA 15

Harvard Business Review

AUGUST 21, 2014

Last year, News Corp’s newspaper division reported EBITDA of $795 million on $6.7 So it shouldn’t be surprising that many newspapers have struggled. However, even here the story isn’t as bleak as many think. billion—a 12% margin—which is pretty good.

Venture Capitalist 11

Venture Capitalist EBITDA Venture Funding Magazine 11

Harvard Business Review

MARCH 28, 2013

Both the primary and secondary buyers added value in the same way — increasing EBITDA through operational improvements (an average of 14% in the first round, 13% the next) and growing revenue by increasing compound annual sales (both by 10%). THE $86 BAKED BEAN.

Supply Chain 8

Supply Chain EBITDA NGO Taylor 8

Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. If you’re not a numbers person, finance is daunting.

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

JUNE 21, 2016

From 2008 through 2013, EBITDA (earnings before interest, taxes, depreciation and amortization) margins increased for 20 consecutive quarters, from 5% to 25%. Sheehan’s strategy has worked. In early 2013, Norwegian went public and became one of the most successful IPOs of the year, closing the year 87% above its IPO price.

Company 13

Company IPO Price EBITDA 13

Harvard Business Review

OCTOBER 20, 2014

And this addresses the commercial value creation question – P&G’s mindset was to create operational efficiencies that would contribute to healthy EBITDA margins. Another useful example comes not from connected devices but earlier data businesses. A key challenge in quantifying the value of IoT is in valuing the data assets it creates.

Discounted Cash Flow 8

Discounted Cash Flow P&L NPV EBITDA 8

Harvard Business Review

SEPTEMBER 27, 2012

Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA. And of course, complex models demand huge volumes of data, are susceptible to computational errors, and hinge on assumptions about unknowable variables such as disruptive technologies that, if wrong, can throw off the results.

Strategy 9

Strategy Proposal Guidelines Net Present Value 9

Harvard Business Review

JUNE 28, 2016

million EBITDA company for 4x paying $6 million and using 50% debt financing. To make the analysis tractable, we’ll make some simplifying conservative assumptions: we’ll assume no growth in the business and, because there is no growth, we’ll assume that the selling multiple exactly equals the purchase multiple.

Consultative 8

Consultative CAGR EBITDA CEO 8

Harvard Business Review

DECEMBER 15, 2015

Business results were outstanding: EBITDA more than doubled in the first year and ROIC increased almost 300%, with fewer sales people. Accounts payable accumulate during selling, and accounts receivables are determined by what’s sold, how fast, and at what price, and payment terms. Finally, there’s measuring results.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

FEBRUARY 6, 2015

On average, we have found that high-reputation companies have higher returns (both Return on Assets and Return on Equity), deliver higher earnings multiples , have higher market/book ratios , and have a higher Enterprise Value/EBITDA ratio – the key measures on which investors assess corporate performance.

CEO 8

CEO Reputation Metrics EBITDA 8

Harvard Business Review

MARCH 17, 2016

If even 10% of those executives leave in the first year of this transaction, we will fall far short of our EBITDA target.” Caleb continued, “We have more than 250 employment agreements with significant severance payouts. ” A purple coloring crawled up Mel’s face from neck to hairline.

EBITDA 8

EBITDA Consensus Participative Commitment 8

Harvard Business Review

JUNE 8, 2015

In a 2010 study with Cornell University, we showed that our assessment grades predict performance, as measured not only by revenue and EBITDA but also by boss ratings (often issued by the Board). The more recent study extended that research by showing that those who out-performed in our assessments also scored higher on the LAAI.

Agility 8

Agility Emotional Intelligence Learning-by-Doing EBITDA 8

HR Digest

AUGUST 1, 2019

Joe has also written toolkits for Harvard Business Press including the ROI Toolkit, Understanding EBITDA, and the Business Valuation Toolkit. He has also been a guest on CNBC’s Morning Call program. PHOTO: BUSINESS LITERACY INSTITUTE. The post The INs and OUTs of Business Literacy appeared first on The HR Digest.

Finance 63

Finance Metrics EBITDA Handbook 63