April 28, 2011

The measure of beauty

An old saying goes as: “Beauty lies in the eye of the beholder”. Each of the people that we interact with sees us differently.

The methodology we use in our business enables us to measure this level of beauty for companies. Under competitive conditions, potential partners of our clients state the beauty level as they see in our client’s business by the offers they make for the company shares.

To establish the offer value we know that they consider their common future potential with our client – thanks to competition – and calculate the EBIT for their future partnership over some years. (EBIT  is calculated by subtracting all of the expenses of the company except the tax and interest amounts from the revenues in a given year).

Since each of the potential partners envisage a different future with our client, we get different future EBITs for each of the possible partnerships.

How about applying this concept to our personal lives? Can we use the same formula for our relationships with our friends, family and everybody else in our social life? Does a smile from us bring the same value to each of the people we know? What is the cost of being not able to “touch” a friend tomorrow?

By the way… Whom do you think you will be assisting to get the highest EBIT in the future? :)

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