Forecast for economy for 2023

Every generation needs a revolution - an entrepreneurial revolution

Soothsayer,  feng shui experts say its going to be hard.   

From the lay, from the economists and the businessmen, its going to be bleak:

    1.  Threat of recession

    2.   Inflation

    3.   Threat of lack of liquidity -  repayments of maturing debt, too much money

           circulating

Indeed what must businessmen do:

   1.  More belt tightening

   2.  Hard work

   3.  Focus

 Business Forecast for 2023

Horrroscope 2023

      

Business valuation using correct formulas using dubious data

Every generation needs a revolution - an entrepreneurial revolution

This post was shown a due diligence report but reporting a valuation of only 6 number for a business

coughing out P4 - 5 million a year

Some errors were observed in the work purportedly a certified public accountant.  It was neither a due diligence nor a proper valuation report

1.  In the asset portion, the cash of the business totaling P8 m was totally disregarded?  What?  You are valuing the asset of the business and not considering if the cash will be dissipated or not

2  The consultant arrived at a Weighted Average Cost of Capital which was achieved only on the 5th year  And conveniently used this as WACC (ergo for the discounted cash flow the intrinsic method, a high 55% WAC would result in lower valuation

3.  In the intrinsic portion (NPV) analysis, there was no current year cash flow (and in actuality, the current net  cash flow amounts to P4.5 million

    1  In the projected cash flow for the next five years, 2023 cash flow is only P9,k

    2.  The WAC again of 55% erroneously computed is used as the discount factor.  The high %

         results in a very low valuation

PSE lists WACC at only 6.84 % and the 55% /5 is only 11%

Not every body understands business valuation    At entrepreneurship we teach  this skill

New business inquiries -3 even while staying at home.

Every generation needs a revolution - an entrepreneurial revolution

Even while staying at home, no active business development assistant (which could cost anywhere from P20 to P40K a month)  three business opportunities in the area of memorialization  came my way 

1   A 1.4 hectare property which can become an all in business center for memorialization in Calabarzon

     Population of area is 290K  Open for joint venture    This is near the church only about 300 meters              away

2  Another 1.8 hectare project in a major city in Calabarzon with 290K population likewise..  It does not

    have our product yet  It is only 3.1 km from the Cathedral

3,  A 8 hectare project along the highway in Region 1 which could be had in a joint venture.  It serves 8 towns of a most populous vote rich province.   This would make our business number 3 in this province.  

This is 3.1 km away from the Cathedral.