Economic Value Added (EVA) and the Valuation of Small Businesses

This article presents an overview of the standard asset, market, and income valuation methods generally used to estimate the value of small businesses

Value Creation and the Entrepreneurial Business

The need to finance high growth and manage the interests and needs of investors makes value creation a critical concern for entrepreneurial businesses. Almost any financial endeavor, such as attracting new investors or making investment decisions, necessitates the consideration of the equity value created by the endeavor. The perceived value creation, for example, has a direct effect on the percentage of the firm outside investors will require if they are to invest in the business. Measuring the value created by publicly traded businesses, depending on the assumptions made, is relatively straightforward. If public markets are at least semi-strong form efficient (i.e., equity prices reflect all publicly available information regarding a business’s true underlying value), then the closing price on a large, publicly-traded company should accurately reflect that enterprise’s value. In other words, public markets take individual investors’ beliefs of the magnitude, timing and riskiness of the business’s expected future cash flows and incorporate them into the actual equity value reported at closing. Like the managers of large companies, the entrepreneur should think market value, rather than just accounting profits, when making economic decisions. Unfortunately, the major problem of measuring the value of an entrepreneurial business is that many are either privately-owned or are publicly-traded in very thin secondary markets, subsequently market assessment of the true value of the business’s equity is not readily available. This unavailability of market information makes the value creation assessment process more difficult for entrepreneurial companies, but certainly not any less important. Thus, information about the correlation of readily available performance measures with a true market value creation measure is worthwhile. This study statistically examines the relationship of non-market measures of value creation with a true market value creation measure for a sample of small publicly-traded companies (i.e., less than $100 million). We restricted the size of the companies we examined to make our sample more representative of entrepreneurial businesses, which are more likely to be either privately-held or traded very thinly in public markets. For the purposes of this study the market value creation measure utilized was shareholder return. Each company’s shareholder return was estimated using stock price and dividend information. Three different dimensions of non-market value creation measures were utilized. These three dimensions were accounting profitability, cash flow performance, and growth. Our investigation revealed that relationships between certain non-market measures of value and small entrepreneurial types of businesses existed. Statistically significant positive correlations were found between shareholder return and the earnings profitability measures of return on equity, return on assets and return on invested capital. These relationships were found to exist only for companies that reported positive earnings. Stronger relationships were found to exist between shareholder return and the cash flow performance measures of earnings growth and sales growth. Furthermore, the sales growth measure was found to be correlated for companies that had positive earnings and companies that reported negative earnings

The very large G-protein coupled receptor VLGR1: a component of the ankle link complex required for the normal development of auditory hair bundles

Sensory hair bundles in the inner ear are composed of stereocilia that can be interconnected by a variety of different link types, including tip links, horizontal top connectors, shaft connectors, and ankle links. The ankle link antigen is an epitope specifically associated with ankle links and the calycal processes of photoreceptors in chicks. Mass spectrometry and immunoblotting were used to identify this antigen as the avian ortholog of the very large G-protein-coupled receptor VLGR1, the product of the Usher syndrome USH2C (Mass1) locus. Like ankle links, Vlgr1 is expressed transiently around the base of developing hair bundles in mice. Ankle links fail to form in the cochleae of mice carrying a targeted mutation in Vlgr1 (Vlgr1/del7TM), and the bundles become disorganized just after birth. FM1-43 [N-(3-triethylammonium)propyl)-4-(4-(dibutylamino)styryl) pyridinium dibromide] dye loading and whole-cell recordings indicate mechanotransduction is impaired in cochlear, but not vestibular, hair cells of early postnatal Vlgr1/del7TM mutant mice. Auditory brainstem recordings and distortion product measurements indicate that these mice are severely deaf by the third week of life. Hair cells from the basal half of the cochlea are lost in 2-month-old Vlgr1/del7TM mice, and retinal function is mildly abnormal in aged mutants. Our results indicate that Vlgr1 is required for formation of the ankle link complex and the normal development of cochlear hair bundles

A Century of Grading Research: Meaning and Value in the Most Common Educational Measure

Grading refers to the symbols assigned to individual pieces of student work or to composite measures of student performance on report cards. This review of over 100 years of research on grading considers five types of studies: (a) early studies of the reliability of grades, (b) quantitative studies of the composition of K-12 report card grades, (c) survey and interview studies of teachers’ perceptions of grades, (d) studies of standards-based grading, and (e) grading in higher education. Early 20th century studies generally condemned teachers’ grades as unreliable. More recent studies of the relationships of grades to tested achievement and survey studies of teachers’ grading practices and beliefs suggest that grades assess a multidimensional construct containing both cognitive and non-cognitive factors reflecting what teachers value in student work. Implications for future research and for grading practices are discussed

Ecological and evolutionary patterns of freshwater maturation in Pacific and Atlantic salmonines

Reproductive tactics and migratory strategies in Pacific and Atlantic salmonines are inextricably linked through the effects of migration (or lack thereof) on age and size at maturity. In this review, we focus on the ecological and evolutionary patterns of freshwater maturation in salmonines, a key process resulting in the diversification of their life histories. We demonstrate that the energetics of maturation and reproduction provides a unifying theme for understanding both the proximate and ultimate causes of variation in reproductive schedules among species, populations, and the sexes. We use probabilistic maturation reaction norms to illustrate how variation in individual condition, in terms of body size, growth rate, and lipid storage, influences the timing of maturation. This useful framework integrates both genetic and environmental contributions to conditional strategies for maturation and, in doing so, demonstrates how flexible life histories can be both heritable and subject to strong environmental influences. We review evidence that the propensity for freshwater maturation in partially anadromous species is predictable across environmental gradients at geographic and local spatial scales. We note that growth is commonly associated with the propensity for freshwater maturation, but that life-history responses to changes in growth caused by temperature may be strikingly different than changes caused by differences in food availability. We conclude by exploring how contemporary management actions can constrain or promote the diversity of maturation phenotypes in Pacific and Atlantic salmonines and caution against underestimating the role of freshwater maturing forms in maintaining the resiliency of these iconic species.Keywords: Maturation, Salmon, Diversity, Salmo, Oncorhynchus, Oncorhynchus Resilience, Life history, Conservatio

Design and implementation of the START (STem cells for ARDS Treatment) trial, a phase 1/2 trial of human mesenchymal stem/stromal cells for the treatment of moderate-severe acute respiratory distress syndrome

Background: Despite advances in supportive care, moderate-severe acute respiratory distress syndrome (ARDS) is associated with high mortality rates, and novel therapies to treat this condition are needed. Compelling pre-clinical data from mouse, rat, sheep and ex vivo perfused human lung models support the use of human mesenchymal stem (stromal) cells (MSCs) as a novel intravenous therapy for the early treatment of ARDS. Methods: This article describes the study design and challenges encountered during the implementation and phase 1 component of the START (STem cells for ARDS Treatment) trial, a phase 1/2 trial of bone marrow-derived human MSCs for moderate-severe ARDS. A trial enrolling 69 subjects is planned (9 subjects in phase 1, 60 subjects in phase 2 treated with MSCs or placebo in a 2:1 ratio). Results: This report describes study design features that are unique to a phase 1 trial in critically ill subjects and the specific challenges of implementation of a cell-based therapy trial in the ICU. Conclusions: Experience gained during the design and implementation of the START study will be useful to investigators planning future phase 1 clinical trials based in the ICU, as well as trials of cell-based therapy for other acute illnesses. Trial registration Clinical Trials Registration: NCT01775774 and NCT02097641

The link between volcanism and plutonism in epizonal magma systems; high-precision U–Pb zircon geochronology from the Organ Mountains caldera and batholith, New Mexico

The Organ Mountains caldera and batholith expose the volcanic and epizonal plutonic record of an Eocene caldera complex. The caldera and batholith are well exposed, and extensive previous mapping and geochemical analyses have suggested a clear link between the volcanic and plutonic sections, making this an ideal location to study magmatic processes associated with caldera volcanism. Here we present high-precision thermal ionization mass spectrometry U–Pb zircon dates from throughout the caldera and batholith, and use these dates to test and improve existing petrogenetic models. The new dates indicate that Eocene volcanic and plutonic rocks in the Organ Mountains formed from ~44 to 34 Ma. The three largest caldera-related tuff units yielded weighted mean [superscript 206]Pb/[superscript 238]U dates of 36.441 ± 0.020 Ma (Cueva Tuff), 36.259 ± 0.016 Ma (Achenback Park tuff), and 36.215 ± 0.016 Ma (Squaw Mountain tuff). An alkali feldspar granite, which is chemically similar to the erupted tuffs, yielded a synchronous weighted mean [superscript 206]Pb/[superscript 238]U date of 36.259 ± 0.021 Ma. Weighted mean [superscript 206]Pb/[superscript 238]U dates from the larger volume syenitic phase of the underlying Organ Needle pluton range from 36.130 ± 0.031 to 36.071 ± 0.012 Ma, and the youngest sample is 144 ± 20 to 188 ± 20 ka younger than the Squaw Mountain and Achenback Park tuffs, respectively. Younger plutonism in the batholith continued through at least 34.051 ± 0.029 Ma. We propose that the Achenback Park tuff, Squaw Mountain tuff, alkali feldspar granite and Organ Needle pluton formed from a single, long-lived magma chamber/mush zone. Early silicic magmas generated by partial melting of the lower crust rose to form an epizonal magma chamber. Underplating of the resulting mush zone led to partial melting and generation of a high-silica alkali feldspar granite cap, which erupted to form the tuffs. The deeper parts of the chamber underwent continued recharge and crystallization for 144 ± 20 ka after the final eruption. Calculated magmatic fluxes for the Organ Needle pluton range from 0.0006 to 0.0030 km3/year, in agreement with estimates from other well-studied plutons. The petrogenetic evolution proposed here may be common to many small-volume silicic volcanic systems