If you were actually able to stay awake through your 8:00am college economics class, you might recall a definition of Enterprise Value as a firm’s market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. If you did recall that calculation, congratulations! Now forget it, as it has no relevance to this discussion.
In the world of financial advisory practices, true enterprise value has a different and far less quantifiable definition – the ability of your business to outlast its founder while continuing to sustain and grow. But how exactly does an adviser go from maintaining a practice to building a scalable, sustainable and durable business with enterprise value?Read More