Archives

Key Value Drivers – The Hierarchy of Recurring Revenue

The customer base is a key value driver for most businesses.  In addition to a diversified client base and the potential for future revenue growth, purchasers are very interested in companies that have strong customer relationships that lead to repeat business.

The extent to which future sales can ...

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Key Value Drivers – Over Reliance on the Owner

Developing a business that is less reliant on the owner is a key value driver for many businesses.  Purchasers are very interested in assessing the extent to which sales will continue and the business will carry on under new ownership. also plays a key role in this equation.

If sales are generated by the owner’s personal skills, abilities, contac...

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Periodic Valuations Help Avoid Costly Legal Disputes

Relationships can break down over time.  Many of us have experienced this with a friend, spouse or business partner.   are among the most contentious and frequent types of business disputes.  In addition, over 40% of marriages will end in divorce before the 50th year of marriage. [1]

Conflicts between sh...

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Key Value Drivers – Economic Dependence

Developing a business that is not economically dependent on a single customer, supplier or employee is a key value driver for many businesses.  Economic dependence increases business risk and decreases .

Potential purchasers of a business are interested in the extent to which: i) sales are derived from one customer; ii) raw materials are obtained fr...

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Exit Planning Can Save Significant Taxes

 

Maximizing the net proceeds received from the is a common goal for many business owners.  This will only be accomplished with enough time to implement an effective strategy for maximizing value and minimizing taxes.

Business owners generally are aware of the $750,000 capital gains exemption that is ...

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Key Value Drivers – Size and Scalability

Size and scalability is a key value driver for most businesses.  Larger businesses are perceived to be more substantial and stable organizations than smaller companies.  These businesses have found a way to grow beyond the efforts of the owner(s) and become less reliant on the owner.

Investors consider smaller companies to be riskier than larger o...

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Exit Planning – A Business Needs Curb Appeal

You never get a second chance to make a first impression. is a key factor to creating the right impression.

Let’s say you’re in the market for buying a house and you go to see one that sounds like it may have potential.  How does it look on the outside?  The inside?  What about the location?  What is your general impression?

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Do You Think Like a Potential Purchaser?

While some business owners think they know what their business is worth, others have no clue.  Do you really know what a potential purchaser would be willing to pay for your business?

According to RBC , Your Essential Road Map:

"It is important to get a profes...

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Key Value Drivers – Finding Your Blue Ocean

Having a competitive advantage or industry niche is a key value driver for many businesses.  A potential purchaser will be very interested in a business that has a unique and meaningful product/service offering or one that has reduced or eliminated competition in the marketplace.

 

This reminds me of a book entitled "Blue Ocean Strategy", by W. Chan Kim and Renee Mauborgn...

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10 Steps to Critiquing an Expert Report

(CBVs) support the business and legal communities in matters which include, but are not necessarily limited to, business valuation, value enhancement, exit planning and litigation support.

CBVs are frequently retained as independent experts in legal proceedings (e.g. commercial disputes, shareholder disputes, matrimonial disputes, etc.) to assist ...

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