Does Your Company Create Value?
"Your company's added value is the size of the pie minus the size the pie would be if your company didn't exist. Makers of interchangeable commodity products have almost no added value. If your company is the only one which I currently doing something, you may have a lot of value. If your company is the only one capable of doing something, you may have even more value."
Create Value and Keep Some of It
"The challenge in business is twofold. First, create products or services with real value. Second, capture some of that value and pass the rest along to your users and partners. It's very difficult to make money long-term without providing genuine value for your users. But just providing them with value isn't enough to insure success. You also need to find a way to monetize your relationship with them, by taking keeping part of the value you've created."
Valuing Yourself Within a Company
"One way to look at the value of your company is the size of the pie with you minus the size of the pie without you. Commodity makers have almost no added value. If you're the only one currently doing something, you probably have a lot of value. If you're the only one capable of doing something, you probably have even more value."
What Counts Most in a Merger
"The language utilized in mergers tends to confuse the issues and encourage irrational actions by managers. For example, dilution is usually carefully calculated on a pro forma basis for both book value and current earnings per share. Particular emphasis is given to the latter item. When that calculation is negative (dilutive) from the acquiring company's standpoint, a justifying explanation will be made (internally, if not elsewhere) that the lines will cross favorably at some point in the future. The attention given this form of dilution is overdone: current earnings per share (or even earnings per share of the next few years) are an important variable in most business valuations, but far from all powerful. What really counts is whether a merger is dilutive or anti-dilutive in terms of intrinsic business value (a judgment involving consideration of many variables)."