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Get our explanations and latest perspectives on business trends, search funds, and valuation creation.
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Unlock Tax Efficiency with 351 Exchanges
A Section 351 exchange under U.S. tax law lets you transfer assets like stocks to a corporation (e.g., a new Exchange-Traded Fund, or ETF) in return for shares, without triggering taxes on gains or losses—if you meet the rules. How it Works with ETFs: Key Rules to Know: Why It Matters: This approach can save…
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A Competitive Moat
A business’s moat refers to its ability to maintain the advantages that are expected to help the company stay ahead of industry rivals and maintain excess profits into the future. Traditionally these are deeply ingrained benefits like owning a great deal of intellectual property, enjoying a lower cost of capital, a network effect, and/or brand recognition.…
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Top Line Value Creation
There are two ways to increase the value of a company, grow the top line and shrink the bottom line. Increasing sales to generate revenue and growing the top line increases value far more than cutting costs. Operational efficiencies are important and lead to better cash flows, but look at any financial model of a…