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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.

Do You Know The Difference Between Prefab And Manufactured Homes?

When talking about different kinds of homes, there may be some confusion in regards to the terms used to discuss what kind of house is being built. Prefab, Modular, Panel Built, and Manufactured are sometimes mistakenly used interchangeably, but they all mean different things.

Prefab

Short for Prefabricated housing, “Prefab” is a broad term that encompasses several different types of building. Technically, any home that has sections of the structure built in a factory and then assembled on site can fall under the “prefab” designation. Both Modular and Panel Built fall under the umbrella term of prefab, but just as different types of dogs are all canines but differ from each other, Modular and Panel Built both qualify as prefab, but are still different.

Panel Building

As you can see in the video to the right, panel building is accomplished by laying down the floor and then lowering each section of wall in to place one at a time.

This type of construction can be useful in building houses that don’t work neatly as modules and it can be just as structurally sound as other types of prefabricated building. Commercial prefabricated building is often done this way as it allows for wide open spaces and high ceilings. It is also much less expensive to transport a building in panels than in modules if it is large enough.

In the video you will notice that both the first and second story floors are bare when they are lifted in. This is not always the case. Sometimes manufacturers will already have placed anything that can be bolted down. Toilets, sinks, dishwashers, and anything else that can be properly secured during travel can be pre-attached to the floor and cabinets and light fixtures can be pre-attached to walls. This means less work for the builder and saved time and money for you.

Modular Building

This picture shows a module being lowered in place by a crane. With modular building, the house is constructed in separate box-like modules which are then secured together to form a whole. Since the modules have to be transported on the backs of flat-bed trucks over highways, they generally have to be no longer than the truck and no wider than 16’. This traditionally meant that every room in the house had to be less than 16’ wide, but with new technology, old barriers in modular building are breaking down and houses are becoming infinitely customizable.

Modular building usually doesn’t allow for additional structures like garages or porches to be built in the factory, but by combining panel building and modern modular building techniques, modular home factories are able deliver your home up to 90% complete.

Manufactured Housing

While built in a factory like prefabs, there is no construction that happens on site. Manufactured homes are constructed on a steel frame, shipped on its own wheels, and then laid on a crawl space, or a slab of concrete. In some cases, the wheels that got the house to the build site aren’t even removed, just covered up with side skirting. The picture on the right has had skirting added to try to conceal that it is a manufactured home.

Manufactured homes don’t tend to age well, are prone to maintenance issues, and are generally considered to be the worst type of home to live in.

The Difference Between The Two

Building Codes

Prefabricated houses of all kinds must adhere to state and federal building codes and undergo regular inspections, just like any site-built home. This ensures that prefab homes are at least as safe as their site-built counterparts, though there is evidence that a well-built modular home is even more sturdy than a similar site-built home. Manufactured homes on the other hand only have to adhere to HUD standards (Department of Housing and Urban Development) which has much more lenient rules and regulations.

Resale Value

Unlike prefabricated homes which are considered real estate and so maintain or increase in value over time like a site-built home, manufactured homes are considered personal property and so lose value as soon as it’s driven off the lot, just like a car. Their value will continue to decrease for the full life of the home.

Building Limitations

While prefabricated housing used to be limited to very basic designs, modern building techniques have allowed prefabs to become just easily customizable as site-built homes. Unfortunately, manufactured homes are still very much constrained, and have extremely limited options. Most manufactured homes dealers will have the home pre-built and then just sell from their available stock. This means that any customizations made would be done by the owner.

Appearance

Prefab homes are traditionally wood framed, but the push toward modern styles and sustainable living has forced the industry to adopt steel-frame construction for some projects. This allows modular and panel built homes a flexibility in design that allows for custom architecture. Some manufactured homes still have the tin-can look of years gone by and some have been modernized to look almost like a standard home, but there is little to no room for exterior alterations or creativity.

Quality

Perhaps the largest difference between prefab homes and manufactured homes is the quality of the final product. Modular homes are built with factory precision using 25% more material on average than either site-built or manufactured homes. According to FEMA, they stand up better in extreme weather, and they require comparatively little maintenance.

Vitamin supplements - capsules and tablets bulk

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.

Further Reading

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Roll-Up

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.

https://www.divestopedia.com/definition/929/roll-up