Football Fundamentals
This score is worth 6 points.
What is a touchdown?
The most popular Thanksgiving entree.
What is turkey?
Like farmers harvesting crops, business owners hope to harvest this result from a year of hard work.
What is profit?
When one company purchases another company, it is called this.
What is an acquisition?
The most common reason a buyer is willing to pay more for a company.
What is growth potential?
The NFL championship game.
What is the Super Bowl?
This side dish is often topped with gravy.
What are mashed potatoes?
Just as squirrels gather nuts before winter, successful businesses build this to prepare for unexpected challenges.
What are cash reserves?
A company's total sales before expenses are deducted.
What is revenue?
The process of reviewing a company financial, operational, and legal records before a transaction.
What is due diligence?
The player who typically calls the plays.
Who is the quarterback?
Thanksgiving is celebrated on this Thursday each year.
What is the fourth Thursday in November?
A football team reviews game film. Businesses review this to measure performance and guide decisions.
What are KPIs (Key Performance Indicators)?
The term used when two companies combine to form one organization.
What is a merger?
This term describes how much a buyer pays relative to EBITDA.
What is a valuation multiple?
Moving the chains requires gaining this many yards.
What is 10 yards?
This berry-based sauce is commonly served with turkey.
What is cranberry sauce?
Black Friday is to retailers what this is to many B2B companies.
What is year-end sales season?
Business owners often increase company value by improving this metric: earnings before interest, taxes, depreciation, and amortization.
What is EBITDA?
A company generating $1 million in EBITDA sold at a 6x multiple would be valued at approximately this amount.
What is $6 million?
This penalty occurs when a player moves before the snap.
What is a false start?
This annual parade in New York City is nationally televised.
What is the Macys Thanksgiving Day Parade?
Just as a farmer rotates crops to reduce risk, businesses reduce risk by diversifying this.
What is their customer base (or revenue sources)?
Private equity firms often look for companies demonstrating consistent growth in this area over multiple years.
What is profitability or EBITDA growth?
This factor often increases company value because it reduces reliance on any one customer.
What is customer diversification?