What makes The Bill Simmons Podcast a must-listen for sports fans and pop culture enthusiasts. How does Bill Simmons blend expert analysis with engaging storytelling. Why is The Ringer’s flagship podcast consistently ranked among the top sports shows.
The Evolution of Bill Simmons: From Sports Guy to Podcast Powerhouse
Bill Simmons has come a long way since his early days as the “Boston Sports Guy.” His journey from a passionate sports blogger to the founder of The Ringer and host of one of the most popular podcasts in the world is a testament to his unique voice and ability to connect with audiences. The Bill Simmons Podcast, launched in 2007 as the “B.S. Report,” has become a cornerstone of sports and pop culture commentary.
How did Simmons manage to build such a loyal following? His success can be attributed to several factors:
- A deep knowledge of sports history and analytics
- An ability to blend sports analysis with pop culture references
- A conversational style that makes listeners feel like they’re part of the discussion
- High-profile guests from the worlds of sports, entertainment, and media
- Consistent output, with multiple episodes released each week
NBA Coverage: In-Depth Analysis and Bold Predictions
One of the hallmarks of The Bill Simmons Podcast is its comprehensive NBA coverage. Simmons’ passion for basketball shines through in every episode, whether he’s breaking down playoff matchups or discussing league-wide trends. His annual NBA Trade Value List has become a highly anticipated feature, sparking debate among fans and analysts alike.
What makes Simmons’ NBA analysis stand out? He combines statistical analysis with narrative storytelling, creating a unique perspective that goes beyond box scores. For example, in a recent episode, Simmons and Joe House discussed the latest Trade Value List, including:
- Dishonorable mentions
- Notable omissions
- Surprising risers and fallers
- A brand-new No. 1 asset
This approach allows listeners to engage with the content on multiple levels, appealing to both casual fans and hardcore NBA enthusiasts.
The Rewatchables: A Fresh Take on Classic Films
“The Rewatchables” is a popular segment within The Bill Simmons Podcast that has taken on a life of its own. In these episodes, Simmons and guests revisit beloved movies, dissecting memorable scenes, performances, and cultural impact. This unique blend of film criticism and nostalgia has resonated with listeners, adding another layer to the podcast’s appeal.
Recent episodes of “The Rewatchables” have featured:
- “Blood Diamond” (2006) with Chris Ryan
- “Dumb and Dumber” (1994) with special guest Jennifer Lawrence
By exploring these films through a modern lens, Simmons and his co-hosts offer fresh perspectives on classic movies, often uncovering new insights or appreciating overlooked elements.
Star-Studded Guest Lineup: Conversations with Sports and Entertainment Icons
One of the key factors in The Bill Simmons Podcast’s success is its impressive roster of guests. Simmons regularly welcomes top athletes, coaches, actors, and media personalities to the show, creating engaging and often revealing conversations.
Some notable recent guests include:
- Doc Rivers, NBA champion head coach
- Jennifer Lawrence, Oscar-winning actress
- Ryen Russillo, sports media personality
These high-profile interviews provide listeners with unique insights and behind-the-scenes stories that they can’t find anywhere else. Simmons’ relaxed interviewing style often leads to candid moments and unexpected revelations from his guests.
Breaking Down Major Sports Events: From NBA Finals to Golf Controversies
The Bill Simmons Podcast excels at providing timely analysis of major sports events. Whether it’s the NBA Finals, NFL playoffs, or breaking news in the world of golf, Simmons and his guests offer informed commentary and thought-provoking discussions.
Recent episodes have covered:
- The Denver Nuggets’ first NBA championship
- Nikola Jokic’s ascension to the top of the NBA hierarchy
- The PGA Tour-LIV Golf merger and its implications for professional sports
By tackling these topics with a mix of expertise and fan enthusiasm, Simmons creates content that is both informative and entertaining.
The Ringer Network: Expanding the Podcast Empire
While The Bill Simmons Podcast remains the flagship show, it’s part of a larger network of podcasts under The Ringer banner. This expansion has allowed Simmons to cultivate new talent and diversify the content offered to listeners.
Some popular podcasts in The Ringer network include:
- “The Ryen Russillo Podcast”
- “The Mismatch” with Chris Vernon and Kevin O’Connor
- “The Watch” with Chris Ryan and Andy Greenwald
- “Slow News Day” with Kevin Clark
This ecosystem of shows allows listeners to dive deeper into specific topics or explore new areas of interest, all while maintaining the signature Ringer style.
Pop Culture Commentary: Beyond the World of Sports
While sports remain at the core of The Bill Simmons Podcast, the show’s willingness to venture into pop culture territory sets it apart from traditional sports talk radio. Simmons’ encyclopedic knowledge of movies, TV shows, and music allows him to draw fascinating parallels between the world of sports and broader cultural trends.
Recent pop culture discussions on the podcast have included:
- Analysis of the latest streaming service offerings
- Commentary on award show controversies
- Debates about the greatest TV shows and movie franchises
This blend of sports and entertainment content appeals to a wide range of listeners, making The Bill Simmons Podcast a versatile and engaging show.
The Impact of The Bill Simmons Podcast on Sports Media
The success of The Bill Simmons Podcast has had a significant impact on the broader sports media landscape. It has demonstrated the viability of long-form audio content in an era of short attention spans and has inspired countless imitators and competitors.
Some ways in which The Bill Simmons Podcast has influenced sports media include:
- Encouraging more athletes and coaches to launch their own podcasts
- Popularizing the concept of sports-adjacent content that blends analysis with pop culture
- Proving that independent media companies can compete with traditional sports networks
- Showcasing the power of personality-driven content in building a loyal audience
As the podcast industry continues to evolve, The Bill Simmons Podcast remains at the forefront, consistently adapting to new trends while maintaining its core appeal.
Engaging with the Audience: Social Media and Live Events
The Bill Simmons Podcast has built a strong connection with its audience through various engagement strategies. Social media plays a crucial role in this relationship, allowing Simmons and The Ringer to interact with listeners and extend conversations beyond the podcast episodes.
Key aspects of audience engagement include:
- Active Twitter presence, where Simmons shares thoughts and responds to fan questions
- Live podcast tapings at events like South by Southwest (SXSW)
- Fan polls and mailbag segments incorporated into podcast episodes
- Cross-promotion with other Ringer podcasts and content
This multi-faceted approach to audience interaction has helped create a sense of community among listeners, fostering loyalty and encouraging word-of-mouth promotion of the podcast.
The Future of The Bill Simmons Podcast
As The Bill Simmons Podcast continues to evolve, what can listeners expect in the coming years? While predicting the future of any media property is challenging, several trends and possibilities emerge:
- Increased focus on video content, potentially including live-streamed episodes
- Expansion into new content areas, such as technology or politics
- Collaboration with emerging sports leagues or alternative competition formats
- Development of interactive features to further engage the audience
- Potential partnerships with major streaming platforms for exclusive content
Regardless of the specific direction, it’s clear that The Bill Simmons Podcast will continue to adapt and innovate, maintaining its position as a leader in sports and pop culture commentary.
The Enduring Appeal of Bill Simmons’ Voice
At the heart of The Bill Simmons Podcast’s success is the unique voice and perspective of its host. Simmons’ ability to blend humor, analysis, and personal anecdotes creates a listening experience that feels both informative and intimate. His willingness to express strong opinions and engage in friendly debates with guests adds an element of unpredictability to each episode.
What makes Bill Simmons’ voice so engaging? Several factors contribute to his enduring appeal:
- Authenticity: Simmons comes across as a genuine sports fan, sharing the excitement and frustrations of his audience
- Humor: His quick wit and pop culture references keep the tone light even during serious discussions
- Storytelling: Simmons has a knack for weaving compelling narratives around sports events and personalities
- Consistency: Regular listeners know what to expect from Simmons, creating a sense of familiarity and comfort
- Adaptability: While maintaining his core appeal, Simmons has shown an ability to evolve with changing media landscapes and audience preferences
These qualities have helped Simmons build a loyal following that extends far beyond traditional sports fans, making The Bill Simmons Podcast a cultural touchstone in the world of digital media.
The Role of The Bill Simmons Podcast in Sports Journalism
As traditional sports journalism continues to evolve in the digital age, The Bill Simmons Podcast has carved out a unique niche that blends entertainment with insightful analysis. While not a traditional news source, the podcast often breaks stories and provides context that helps listeners better understand the sports world.
How does The Bill Simmons Podcast contribute to sports journalism?
- Offering long-form interviews that allow subjects to speak in-depth about their experiences
- Providing a platform for athletes and coaches to share their perspectives directly with fans
- Analyzing trends and storylines that may be overlooked by mainstream sports media
- Encouraging critical thinking about sports business, culture, and ethics
- Bridging the gap between statistical analysis and narrative storytelling
By occupying this space between traditional journalism and fan commentary, The Bill Simmons Podcast has helped redefine what sports media can be in the 21st century.
The Business of Podcasting: Lessons from The Bill Simmons Podcast
The success of The Bill Simmons Podcast offers valuable insights into the business of podcasting and digital media. As one of the most popular and lucrative podcasts in the industry, it serves as a case study for aspiring content creators and media entrepreneurs.
Key business lessons from The Bill Simmons Podcast include:
- The importance of building a strong personal brand
- The value of consistency in content production
- The power of diversification through a network of related shows
- The potential of podcasting as a revenue generator through advertising and sponsorships
- The benefits of maintaining editorial independence while partnering with larger media companies
As the podcasting industry continues to grow and evolve, The Bill Simmons Podcast remains a prime example of how to build and sustain a successful audio content brand.
Critiques and Controversies: Addressing the Podcast’s Challenges
While The Bill Simmons Podcast has enjoyed tremendous success, it has not been without its critics and controversies. Like any prominent media figure, Simmons has faced scrutiny for various aspects of his work and public persona.
Some of the critiques and controversies surrounding the podcast include:
- Accusations of bias, particularly regarding Boston sports teams
- Debates about the accuracy of Simmons’ predictions and analysis
- Questions about the diversity of voices represented on the podcast
- Discussions about the role of advanced analytics in sports commentary
- Controversies stemming from Simmons’ outspoken nature and occasional conflicts with sports figures
Addressing these challenges head-on and adapting to constructive criticism has been crucial to the podcast’s continued relevance and success.
Bill Simmons Profile and Activity
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Founder
Filed under:
NBA
Bill Simmons’s ranking of the best assets in the NBA is back, and there’s a brand-new no. 1
By
Bill Simmons
Filed under:
The Bill Simmons Podcast
Bill breaks down his latest Trade Value List, including dishonorable mentions, notable omissions, and more
By
Bill Simmons and Joe House
Filed under:
The Rewatchables
Bill and Chris rewatch the 2006 political action thriller directed by Edward Zwick
By
Bill Simmons and Chris Ryan
Filed under:
The Bill Simmons Podcast
The Ringer’s Bill Simmons is joined by NBA champion head coach Doc Rivers to recap the Denver Nuggets’ first title win in franchise history, over the Miami Heat in five games
By
Bill Simmons
Filed under:
The Bill Simmons Podcast
Bill and Ryen discuss the Nuggets’ impressive Game 4 showing and whether Jamal Murray’s ACL injury prevented them from potentially winning a championship sooner
By
Bill Simmons and Ryen Russillo
Filed under:
The Rewatchables
Bill Simmons is joined by Jennifer Lawrence in the Shaggin’ Wagon with Lloyd and Harry as they rewatch ‘Dumb and Dumber’
By
Bill Simmons
Filed under:
The Bill Simmons Podcast
Bill, Kevin Wildes, and David Jacoby discuss the Denver Nuggets’ dominating win over the Miami Heat in Game 3 of the 2023 NBA Finals, Nikola Jokic becoming the indisputable best player in the league, and the road map for Miami
By
Bill Simmons, David Jacoby, and 1 more
Filed under:
The Bill Simmons Podcast
Bill, House, and Hubbard break down the major golf news and discuss whether other sports could face a similar situation
By
Bill Simmons, Joe House, and 2 more
Filed under:
The Bill Simmons Podcast
Discussing Jimmy Butler and Nikola Jokic’s place in history
By
Bill Simmons and Ryen Russillo
Filed under:
The Rewatchables
The three revisit the first installment in the ‘James Bond’ franchise, ‘Casino Royale, starring Daniel Craig, Mads Mikkelsen, and Eva Green
By
Bill Simmons, Amanda Dobbins, and 1 more
The Bill Simmons Podcast on Apple Podcasts
1,149 episodes
HBO and The Ringer’s Bill Simmons hosts the most downloaded sports podcast of all time, with a rotating crew of celebrities, athletes, and media staples, as well as mainstays like Cousin Sal, Joe House, and a slew of other friends and family members who always happen to be suspiciously available.
A Summer NBA Trade Value List, Plus Beal Trades and a U.S. Open Report With Joe House
A Summer NBA Trade Value List, Plus Beal Trades and a U.S. Open Report With Joe House
The Ringer’s Bill Simmons is joined by Joe House to discuss the buzz around a potential Bradley Beal trade and the possible suitors (1:36), before Bill reveals his updated NBA Trade Value List, complete with dishonorable mentions, toughest omissions, and the top 65 trade-value players in the NBA (24:00). Then, House describes his day on LACC at the U.S. Open, some updated odds, and more (1:05:35).
Host: Bill Simmons
Guest: Joe House
Producer: Kyle Crichton
Learn more about your ad choices. Visit podcastchoices.com/adchoicesDoc Rivers on Denver’s First Title, the Zombie Heat, Jokic Vs. the Greats, and Why It Wasn’t Philly
Doc Rivers on Denver’s First Title, the Zombie Heat, Jokic Vs.
the Greats, and Why It Wasn’t PhillyThe Ringer’s Bill Simmons is joined by NBA champion head coach Doc Rivers to recap the Denver Nuggets’ first title win in franchise history over the Miami Heat in five games. They talk about what made this Nuggets team so special, including Nikola Jokic’s historic playoff run, Jamal Murray’s growth as a player, and more. Then, they discuss Doc’s final year in Philly, his thoughts on what it will take for Joel Embiid to win a title, what it’s like coaching James Harden, what happened in Game 6 against Boston in the second round, and more (45:06).
The Ringer is committed to responsible gaming. Please check out http://theringer.com/RG to find out more or listen to the end of the episode for additional details.
Host: Bill Simmons
Guest: Doc Rivers
Producers: Isaiah Blakely and Steve Ceruti
Learn more about your ad choices. Visit podcastchoices.com/adchoicesThe Jokic Effect, a Murray What-If Game, a Most-Likely-to-Be-Traded Draft, and Kyle’s Wedding With Ryen Russillo
The Jokic Effect, a Murray What-If Game, a Most-Likely-to-Be-Traded Draft, and Kyle’s Wedding With Ryen Russillo
The Ringer’s Bill Simmons is joined by Ryen Russillo, and they start by talking about Nikola Jokic and the Denver Nuggets’ impressive play to take a 3-1 lead.
They also discuss whether the Nuggets would have been in a position to win a championship sooner if Jamal Murray hadn’t injured his ACL (29:50). Later, Bill and Ryen draft guys they could see on a different team by the start of next season, and Bill tells some stories from Kyle’s wedding (1:17:07).
The Ringer is committed to responsible gaming. Please check out http://theringer.com/RG to find out more or listen to the end of the episode for additional details.Host: Bill Simmons
Guest: Ryen Russillo
Producers: Isaiah Blakely and Steve Ceruti
Learn more about your ad choices. Visit podcastchoices.com/adchoicesJoker’s Wild in Miami, CP3’s Future, CNN Turmoil, and Streaming TV Chaos With Kevin Wildes, Dave Jacoby, and Matt Belloni
Joker’s Wild in Miami, CP3’s Future, CNN Turmoil, and Streaming TV Chaos With Kevin Wildes, Dave Jacoby, and Matt Belloni
The Ringer’s Bill Simmons is joined by David Jacoby and Kevin Wildes to talk about Denver’s dominating win over the Heat in Game 3 of the NBA Finals, Nikola Jokic ascending to the indisputable best player in the league, and the road map for Miami to still win this series before predicting tomorrow morning’s headlines.
Later, they discuss the rumor that Phoenix will waive Chris Paul, what’s next for Bob Myers, and a wild day on social media for Zion Williamson (1:10). Then, Bill is joined by Matt Belloni from Puck to discuss Chris Licht’s failure at CNN, how the network can pick up the pieces, and which cable entities can survive the 2020s. They also discuss the current state of media and if the streaming bubble is starting to burst (67:20).The Ringer is committed to responsible gaming. Please check out ringer.com/RG to find out more or listen to the end of the episode for additional details
Host: Bill Simmons
Guests: David Jacoby, Kevin Wildes, and Matt Belloni
Producer: Craig Horlbeck
Learn more about your ad choices. Visit podcastchoices.com/adchoicesThe Unfathomable LIV-PGA Merger, Miami’s Special Sauce, and Butler’s Unusual Superstardom With Joe House, Nathan Hubbard, and Raja Bell
The Unfathomable LIV-PGA Merger, Miami’s Special Sauce, and Butler’s Unusual Superstardom With Joe House, Nathan Hubbard, and Raja Bell
The Ringer’s Bill Simmons is joined by Joe House and Nathan Hubbard to discuss the abrupt PGA Tour–LIV Golf merger.
Was this the endgame for LIV all along? What about the players who never left? Could this happen again with other sports like tennis? And more (1:49). Then, Bill talks with Raja Bell about the Heat’s improbable playoff run, Denver’s need to “fight back” vs. Miami’s aggressive play, Jimmy Butler’s unique career arc, Game 3 thoughts, and more (44:44).Host: Bill Simmons
Guests: Joe House, Nathan Hubbard, and Raja Bell
Producer: Kyle Crichton
Learn more about your ad choices. Visit podcastchoices.com/adchoicesMiami’s Zombies Do It Again, Portland’s Dilemma, Ja’s Future, and Worst GM Jobs With Ryen Russillo
Miami’s Zombies Do It Again, Portland’s Dilemma, Ja’s Future, and Worst GM Jobs With Ryen Russillo
The Ringer’s Bill Simmons is joined by Ryen Russillo to discuss the Heat’s Game 2 road win over the Nuggets, Game 3 thoughts, where Jimmy Butler and Nikola Jokic rank among all-time players, and Pat Riley’s legend continuing to grow (1:39), before discussing what the Trail Blazers’ offseason should look like (46:55), Adam Silver’s comments about the Ja Morant situation (55:16), drafting the worst GM jobs in the NBA, and more (1:06:51).
Host: Bill Simmons
Guest: Ryen Russillo
Producer: Kyle Crichton
Learn more about your ad choices. Visit podcastchoices.com/adchoices
the Greats, and Why It Wasn’t Philly
They also discuss whether the Nuggets would have been in a position to win a championship sooner if Jamal Murray hadn’t injured his ACL (29:50). Later, Bill and Ryen draft guys they could see on a different team by the start of next season, and Bill tells some stories from Kyle’s wedding (1:17:07).
Later, they discuss the rumor that Phoenix will waive Chris Paul, what’s next for Bob Myers, and a wild day on social media for Zion Williamson (1:10). Then, Bill is joined by Matt Belloni from Puck to discuss Chris Licht’s failure at CNN, how the network can pick up the pieces, and which cable entities can survive the 2020s. They also discuss the current state of media and if the streaming bubble is starting to burst (67:20).
Was this the endgame for LIV all along? What about the players who never left? Could this happen again with other sports like tennis? And more (1:49). Then, Bill talks with Raja Bell about the Heat’s improbable playoff run, Denver’s need to “fight back” vs. Miami’s aggressive play, Jimmy Butler’s unique career arc, Game 3 thoughts, and more (44:44).
Customer Reviews
27.7K Ratings
Doc
I’ve always sports hated Doc. As a Lakers fan just didn’t like him. Former Knick player, coached the Celtics clippers and 76ers all teams I don’t like.
But he was super engaging with Bill. I can see how he connects with people and players so easily. Great basketball conversation.
Hypocrital nepotism
Calls out belichick for hiring his son yet he hires his unqualified nephews to be producers and editors, makes his dad an analyst, gives his daughter a pop culture segment and brings up his brat son 24/7….
And Joe House is a butt kissing doofus
. Mailbag
Mailbag – What could San Antonio get back if they traded the #1 pick? Not saying they should do it of course, but how huge would the trade haul be? Does Wemby currently have the highest trade value of any player ever?
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about the company, financial indicators, forecast of shares and whether they are worth buying
Investment investigations
Sergey Solodukha
private investor
Bentley Systems (NASDAQ: BSY) is an industrial design software provider. The company listed its shares on NASDAQ in September last year.
On the first day of trading, the growth was 42%. Let’s take a closer look at BS, which has been mastering the Russian market for more than a year.
What’s going on here
Readers have been asking us for a long time to start looking into the accounts and business foundations of foreign issuers. Suggest in the comments the companies whose analysis you would like to read.
The overview contains a screenshot with a table from the report. To make it more convenient to use, we transferred it to a Google spreadsheet and translated it into Russian. Please note that companies round some numbers in their reports, so totals in graphs and tables may not add up.
Download table from report
About
Bentley Systems is a digital twin creator for infrastructure management. BS develops and maintains software for any infrastructure facilities at the design, construction and operational stages of development. The company offers customers a complete integrated solution for the automation of any project: from a small private company to city-forming giants in the field of industry and construction.
Headquartered in Exton, Pennsylvania, USA. There are more than 4,000 employees in ninety representative offices of the company.
Financial indicators
At the end of 2020, the company’s revenue growth compared to 2019 was 8.8%: the company earned $801.5 million.
The main source of income is the sale of software by subscription. Thanks to this form of agreements with partners, BS revenue is replenished quarterly throughout the year. Subscription revenue in 2020 was $679.3 million, up 11.7% from the previous year.
GAAP operating profit of $150.2 million vs. $141.9million for the same period in 2019.
GAAP net income of $126.5 million vs. $103.1 million last year. Adjusted net income is 192.7 million, and for 2019 it was 135 million dollars. Net income for 2020 was $126.5 million, up 20% from 2019.
This is the first public reporting by BS since going public. Until 2020, the company did not practice transparent reporting for investors and limited itself to disclosing only some financial indicators.
Over the period 2017-2020, the company did not show explosive growth, but grew steadily. Average revenue growth rates, as in the 2020 financial statements, are at the level of 11-12%.
Financial indicators. Source: businesswire.com Source: sec.report, page 73 Source: sec.report, page 73 2015
According to analysts, the growth trend will continue in the next 4 years, but there are more ambitious forecasts.
The global market for business software and services in 2020 was estimated at $389.86 billion. GVR estimates a compound annual growth rate (CAGR) of 11.3% from 2021 to 2028.
The effectiveness of human resource management in the future will become one of the main criteria for the growth in demand for software publishers’ products. And this applies not only to the corporate interests of large companies, but also to the lobbies of state structures that are interested in digitalizing the interaction between government and the population.
Source: grandviewresearch.
com Source: grandviewresearch.com
Why stocks could go up
According to ENR, at the time of its 2020 IPO, Bentley Systems served 225 of the 250 largest engineering companies.
GVR’s assessment of the software market outlook to 2028 is partly confirmed by Bentley Systems’ 2020 bottom line.
At the end of 2020, the company’s revenue growth compared to 2019 was 8.8%. Software subscription revenue is the main source of income in 2020 compared to 2019grew by 11.7%.
Cision PR Newswire’s forecast for software market growth in the Construction sector is more modest. According to this analyst, the average annual growth will be about 7%. Approximately at the same level, analysts from Statista evaluate the prospects for the “Corporate Software” sector. According to their assessment, the annual growth rate of this sector will be 7.4%.
Cloud-based business model (SaaS) growth through 2025 is estimated by Cision PR Newswire to be at least 11%.
The global construction management software market is expected to grow by $508.
33 million between now and 2024, averaging around 7%. Forecast for the software (SaaS) market until 2025 – growth by 9$9.99 million, which is about 12% on average.
The size of the world market for construction management software. Source: prnewswire.com Forecast for the software (SaaS) market until 2025. Source: prnewswire.com
Competitors
Bentley Systems’ main competitors are Dassault Systemes and Autodesk. Bentley Systems’ P/S multiple prior to its public offering in September 2020 was at 6.3. Dassault Systemes scores 10.5, Autodesk scores 14.1.
In our case, Bentley Systems looks like the best asset compared to competitors.
Risks
Bentley Systems looks stable. The growth of shares on the first day of trading after the IPO amounted to 42%. On June 2, 2021, the shares traded at +100% – $59.4 – from the price at the start of the public offering in September 2020.
The average price forecast for June 2022 is not lower than $50 per share, which is 9.
46% less than the current price. This is the most pessimistic forecast of the five leading analytical companies and the most significant risk for investors.
Total
Analyst recommendation for Bentley Systems stock is to actively buy. There are objective reasons for such a recommendation, besides the forecast for the annual growth of the subscription software market until 2028 by an average of 10-12%.
Strategic partnership. Back in November 2016, BS and Siemens entered into a strategic partnership to create a unified data environment through the cloud. This has brought companies closer together to share digital models. Prior to the IPO in September 2020, BS received an offer from Siemens to merge financial assets. Discussions about a financial merger continue. According to Greg Bentley, even if this merger does not take place in the near future, the mutual benefits of the partnership between BS and Siemens cannot be overestimated.
Purchase Seequent.
In March of this year, Bentley Systems announced the acquisition of Seequent, a leader in geological modeling software and cloud services for geology and geophysics. The amount of the transaction is about a billion dollars. In the long term, this acquisition will add at least 10% to each of Bentley Systems’ key financial indicators: EBITDA, revenue, profit. The company will continue to successfully expand the opportunities for creating digital twins of infrastructure facilities in various areas – this will not only have a positive impact on the capitalization of Bentley Systems, but will also contribute to global decarbonization and mitigation of environmental risks.
“Avoid the words ‘debit’ and ‘credit’ when talking to the owner.”
Prepare a financial report every month, but no one reads it? Many financiers step on such a rake, who, before analyzing the numbers, do not ask themselves what all this is for and what benefits it will bring to the business.
Together with Svetlana Kibenko — Head of Finance at Reckitt Benckiser Ukraine (Durex, Nurofen, Strepsils, Gaviscon, etc.) — we analyze the most common problems faced by financiers and businesses.
Learn more about how to decipher financial statements and find understandable answers to the questions of a company owner in Svetlana’s course “Financial Analysis”, which will soon start at Laba.
Problem #1
Your business is about a year old. But you still don’t understand how much money you earn “net”, how much you can withdraw in the form of dividends, and how much you can reinvest. What is the problem and how to solve it?
The problem is that accounting is not fully configured. It must be conducted, regardless of the size of the business, in order to understand how much the company earns and how much it spends. Analyze all expenses and income for the year. One of the easiest ways is to write out expenses in the right column, and income in the left column.
And see what’s left after the calculations.
Even if you have a small business, keep all income and expenses in a separate bank account. Then it is easier to understand how much you have earned. And if you take money from a business account, you need to post it as a payment to the owner. First, it will be transparent. Secondly, at any time it will allow you to understand how much money you have.
Small businesses with few employees do not need to develop custom reports. Usually this is the need of a large company. It is enough to form a small standard P&L in your own form to keep track of income and expenses.
Issue #2.
You have just started working as a financier, there are a lot of documents and figures – it is difficult for you to understand everything.
How to understand the structure and logic of each report?
Usually, the financier works with large reports already as an analyst. And all that a financial analyst should know is what the reports consist of and what he wants to get from them.
Standard P&L or BS is easy to understand. If we talk about specific reports of the company, then gradually you need to study what the business does and what this or that report demonstrates. Worth analyzing:
- whether a specific report is needed
- does it show what is required of it
- whether any accounting optimizations are possible
The only way to understand the structure and logic of financial analysis is to study. Any financial analyst who comes to the company feels like a newbie. Because every business is unique in its products and services. Therefore, it takes time to understand what data should be processed and how it is more convenient to do it.
For comparison, let’s take two companies – one provides legal services, and the second production.
In a legal organization, the income may be large, but the cost of the service may be insignificant in comparison.
Then we get a high margin. But costs not directly related to the provision of legal services can be higher than those of a manufacturing company. Because she has most of the costs – this is the cost, and other costs are less.
If we want to understand the costs of a law firm, we analyze those that are not included in the cost price. Because the cost is the price for the time of the people who worked for the client. And expenses are the funds that were spent on these people, office, conferences, trainings and the like. When we analyze a manufacturing company, the first thing to look at is the cost, because this is the biggest expense in this case.
Another example is differences in analysis in terms of marginality. If we evaluate a company that sells chocolate, then the margin of the product will be low, because there is a lot of competition in this area.
And if we look at the jewelry business, the margin of the product is much higher here, despite strong competition, because jewelry is a status item, and most often people are willing to pay more for it.
Issue #3.
You are a beginner financier. You understand the main reports, but do not understand the relationships between them. For example, why in Cash Flow the purchase of a car is an investment expense, but in the balance sheet it is an increase in assets.
How to understand the relationships between reports?
We need to understand what each report consists of and accept some things as an axiom. For example, buying a car is an investment expense because it invests in the future of the company and therefore increases assets.
You need to delve into the reports gradually. We start by setting ourselves a task: what we want to understand and why we need it. And then we decompose what we are interested in into separate elements.
Finance is a science. Therefore, if a person wants to become a professional financier, first you need to figure out what each figure, a separate report and all reporting consists of. And also understand why we are doing all this.
In my practice, there were people who prepared a report because “it was always done”, but did not know what it was for and what it showed. It turned out that all colleagues received the document, but no one looked at it.
Classic reports for any business: P&L – profit and loss, CF – cash flow, BS – balance sheet . Also, the company can conduct analyzes of the cost and costs of departments.
Reports can be prepared for local or internal corporate accounting. Sometimes a company has three sets of reports:
– for internal needs
– for external needs
– for different owners
This may be necessary due to the difference in accounting – how certain expenses are interpreted by different laws, for example, in Ukraine and the United States.
All other reports, except for the classic ones, are customized, which decrypt data from P&L, CF and BS . They are aimed at ensuring that managers understand in detail how the business feels, and can make decisions based on this.
These can be reports on production or sales for specific products, advertising costs for programs and promotions, the cost of raw materials from different suppliers, etc.
Issue #4.
You know how to prepare reports, but do not know how to explain to the owner in simple terms what the problem is and give recommendations for business.
What to do?
This is a difficulty for many financiers – they cannot explain in understandable words what is happening in the reporting. Therefore, we must learn to simplify.
What to do?
Firstly, in a conversation with the owner, avoid complex terminology like “debit” and “credit”, if he himself does not want it. A debit is an expense or asset, a credit is an income or liability.
Secondly, try to explain the situation in non-financial language so that anyone can understand. For example, I trained on my mother. When she talked about promotions, she didn’t talk about baseline, uplift, cannibalization, but that “I will sell so much more”, “I will spend so much” and “I will earn so much”.
Issue #5.
You have been in business for about a year. For the first time, we faced the fact that it is time to pay salaries to employees, and you have not yet received payment under the contract from the client, there is no free money.
What to do?
Many small businesses face this problem. When they enter the market and want to work with large companies, it turns out that these organizations cannot pay quickly and on time. There are expenses, salaries need to be paid to people now, and we will receive the money in 30, 60 or even 90 days.
A simple example: I contact a recruiter to find me an employee in the company. And he finds, for example, in two months. Further, the specialist draws up an act of completed work, and according to the contract, I need to pay for his services from the date of the act in 60 days. That is, the recruiter worked for two months and he will wait for his earnings for another two months.
If a company lives from project to project, it is impossible to cope without credit funds.
Therefore, a simple solution is to have a credit limit in the bank or the possibility of overdrafting the account to cover short-term money deficits.
Another option is to try to “build up” the stock of funds that would be in the current account and use it if necessary. It is expensive, because then money brings nothing but peace. And they must work.
Even large companies can face such a problem. For example, if the business depends on several distributors. You expect them to pay on the 25th, and on the 26th you will pay the employees. And the distributor has no money, and he says that he will pay in a week. Then you need to go to the bank to take out a loan for this period and pay off your current obligations.
This is a common situation, and there is no way out, except for loans or a financial cushion.
My first employer was on loans for the first 10 years of its existence. The business was profitable, but the funds were invested in development, so the company decided to live with loans.
And only when there was more money than expenses, the loans were returned.
Issue #6.
Your business is developing: there are more customers, the average check is higher, demand is growing, but in fact there is no money – they are constantly leaving somewhere.
What could be the problem and how to solve it?
The problem may be that income does not cover expenses. For example, a group of people are developing a business and decide that their prices will be slightly lower than those of their competitors. But they also want to have staff, an office, a gym, etc. And here a problem arises – poor-quality analysis of income and expenses.
In accounting there is a principle of matching, or conformity – you need to compare income with the expenses that we incur in order to receive this income. With production or construction, it is easier, but with a restaurant, for example, it is more difficult, because it is difficult to calculate the cost of each serving.
But you still need to try to understand whether income covers expenses. Because if you buy the highest quality meat, and put the price of a steak below the market, then the establishment will be unprofitable.
To solve the problem, it is necessary to make a qualitative analysis of income and expenses. You can even evaluate each day and see if it was profitable.
Issue #7.
You have the opportunity to invest in a large batch of hot goods, but you do not understand if you can afford it. It seems that there is “free” money, but in a week they need to be paid for rent.
How do you know how much “free” cash your company has?
Business exists to make money. In order to determine how to earn more, the company must make plans. Part of this process is planning for the receipt of money. But even some large organizations don’t have the resources to do it. Therefore, not everywhere there is an ideal planning of the cash flow statement.
What should be done in such a situation? Analyze how much money in the form of income will come in the next two weeks and how much will go to expenses, such as rent.
And then to understand whether there is actually free money. Another option is to determine how long you can roll over the lease, for example, until you sell a product.
But there is a nuance – it is desirable to always keep a popular product in such quantity that can be sold within a short period of time. Before buying a batch of goods, it is necessary to analyze whether it will turn out that the products will remain in large volume and will either have to be written off or sold at a significant discount.
That is, to solve the problem, you need:
- understand how much free money you actually have and whether you can put aside something to buy a hot commodity
- find out if the company will receive income in the form of money that will cover the rent
- make an analysis whether a hot commodity is really needed
Issue #8.
You are the owner of a small agency and are considering a merger with another organization.
How to form a plan for the purchase of a new business?
The first thing to do is understand why you want to merge with another agency. Find out what will improve in your company – new customers will come or an attractive niche will open. So that it doesn’t happen that you pay big money, but you just get people who need to be paid a salary.
Usually, before buying any business, a Due Diligence assessment is made, in which we analyze what we are buying. For example, customer databases, contracts with suppliers, access to channels, people who test services. We evaluate everything and consider how much it would cost if we did it ourselves.
This step is necessary in order to understand how fair the value of the business you want to buy. For example, you figured that your company could do everything for $1 million, and the owner of another business wants $2 million. It is logical that this is not profitable.
I have seen different cases of company mergers.
