Forecasting vs. Projections
Budget forecasting is a process that analyzes an organization's financial statements and current financial position, and presents an assumption of how the organization will behave in the future. A financial projection, on the other hand, is a hypothesis that is based on assumptions, not actual data.
AICPA Attestation Standards Section 301, Financial Forecasts and Projections:
Forecast: “Prospective financial statements that present, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and cash flows. A financial forecast is based on the responsible party’s assumptions reflecting the conditions it expects to exist and the course of action it expects to take.”
Projection: “Prospective financial statements that present, to the best of the responsible party’s knowledge and belief, given one or more hypothetical assumptions, an entity’s expected financial position, results of operations, and cash flows. A financial projection is sometimes prepared to present one or more hypothetical courses of action for evaluation, as in response to a question such as, ‘What would happen if … ?'”
Gravitas only uses Forecasting to help predict future results and performance outcomes.
Definition - What does Roll-Up mean?
A roll-up (also known as a consolidation) is a term used to describe a company that is built primarily though the acquisition of smaller companies with common services or products. Usually, roll-ups are conducted by financial buyers in a specific market that is fragmented and can be consolidated. The market may be dominated by one player, with the balance of the competition made up of smaller private companies without sufficient scale and infrastructure to challenge the dominant player.
The financial buyer will identify the potential acquisition targets that offer products or services within the fragmented market and usually acquire them through a platform company. The roll-up then entails putting the various businesses together under a common brand, administrative infrastructure, reporting systems, and sales and marketing, so the combined business is presented to the customer base as a single entity. In a roll-up, value is created by building a much larger, scalable entity that will command a higher valuation multiple upon exit, and also by establishing a common platform of systems and processes that allows for easy integration of each acquisition.
Divestopedia explains Roll-Up
Roll-ups can generate value, but they are extremely difficult to execute. The difficulty lies in the mix of different cultures and business practices inherent in each of the companies acquired, as well as the considerable change that these companies experience as they get integrated.
If the change is too immediate, the principals may get disenchanted quickly and leave, which causes a loss of value due to the usual dependence on these principals in the early stages. Similarly, if the integration change is too slow, then the combined company remains fragmented with a bunch of companies under one common umbrella, but with no cohesion or infrastructure to operate as a scalable, single entity.
Roll-ups are better suited for company owners who wish to stay on and create value together with other operational and financial partners, rather than those sellers who are simply looking to monetize their company equity through a quick cash exit.
What are Nutraceuticals
By Dr Tomislav Meštrović, MD, PhD
Nutraceuticals is a broad umbrella term that is used to describe any product derived from food sources with extra health benefits in addition to the basic nutritional value found in foods. They can be considered non-specific biological therapies used to promote general well-being, control symptoms and prevent malignant processes.
The term “nutraceutical” combines two words – “nutrient” (a nourishing food component) and “pharmaceutical” (a medical drug). The name was coined in 1989 by Stephen DeFelice, founder and chairman of the Foundation for Innovation in Medicine, an American organization located in Cranford, New Jersey.
The philosophy behind nutraceuticals is to focus on prevention, according to the saying by a Greek physician Hippocrates (known as the father of medicine) who said “let food be your medicine”. Their role in human nutrition is one of the most important areas of investigation, with wide-raging implications for consumers, health-care providers, regulators, food producers and distributors.
Categories of nutraceuticals
The definition of nutraceuticals and related products generally depends on the source. They can be classified on the basis of their natural sources, pharmacological conditions, as well as chemical constitution of the products. Most often they are grouped in the following categories: dietary supplements, functional food, medicinal food, farmaceuticals.
A dietary supplement represents a product that contains nutrients derived from food products, and is often concentrated in liquid, capsule, powder or pill form. Although dietary supplements are regulated by the FDA as foods, their regulation differs from drugs and other foods.
Medical food is formulated to be consumed or administered internally, under the supervision of a qualified physician. Its intended use is a specific dietary management of a disease or condition for which distinctive nutritional requirements are established by the medical evaluation (on the basis of recognized scientific principle).According to their generally accepted definition, functional food is a category which includes whole foods and fortified, enriched or enhanced dietary components that may reduce the risk of chronic disease and provide a health-benefit beyond the traditional nutrients it contains.
Farmaceuticals are medically valuable components produced from modified agricultural crops or animals. The term is a combining of the words “farm” and “pharmaceuticals”. Proponents of this concept are convinced that using crops (and possibly even animals) as pharmaceutical factories is much more cost effective than conventional methods, with higher revenue for agricultural producers.
Potential health benefits
Over the years nutraceuticals have attracted considerable interest due to their potential nutritional, safety and therapeutic effects. They could have a role in a plethora of biological processes, including antioxidant defenses, cell proliferation, gene expression, and safeguarding of mitochondrial integrity.
Therefore nutraceuticals may be used to improve health, prevent chronic diseases, postpone the aging process (and in turn increase life expectancy), or just support functions and integrity of the body. They are considered to be healthy sources for prevention of life threatening diseases such as diabetes, renal and gastrointestinal disorders, as well as different infections.
A wide range of nutraceuticals have been shown to impose crucial roles in immune status and susceptibility to certain disease states. They also exhibit diseases modifying indications related to oxidative stress including allergy, Alzheimer's disease, cardiovascular diseases, cancer, eye conditions, Parkinson's diseases and obesity.