The . According to a publication by Mercer Capital: “About 75% of all private equity is owned by households for whom it constitutes at least half of their total net worth. Households with entrepreneurial equity invest on average more than 70% of their private holdings in a single private company in which they have an active management interest.” Wealth managers typicall...
Business ownership can be complicated, particularly when there are multiple shareholders. The odds of disagreement and conflict among shareholders over various issues can be very high. When there must be a mechanism in place for dealing with the dispute or for enabling one or more of the shareholders to exit the business in a predetermined manner. A shareholder buyout can quickly turn into a costly dispute if the...
If you’re a business owner, you’ll know that besides your tangible property, intangible assets also play an integral role in the modern day enterprise. It is estimated that companies today have intangible assets that represent two-thirds of the overall business value, although this estimate can vary significantly from business to business. It’s no wonder that understanding your company’s can help you further drive yo...
You’ve probably heard the term “business valuation” before. Putting a reasonable price tag to your business is necessary for your strategic plan. It reaps several benefits for you, as the business owner, regardless of whether you’re looking to sell or continue to maintain ownership. To take advantage of potential financial opportunities and avoid unknown legal liabilities, it makes commercial sense to conduct a . In essence, what you will be doing is providing historical financial sta...
This is a common misconception and one that could not be further from the truth. But First, What is Business Valuation? Business valuation is not merely a popular concept in corporate finance but has gained significant real-world traction among business owners. An independent business valuation helps the owner understand the fair market value of the company and should be conducted for many different reasons. <...
All business owners will exit their business at some point, either through planned or unplanned circumstances. However, there are certain events that could thwart what should be an otherwise hassle-free business transfer.
Is there really a right time to conduct a business valuation? If so, when? Being able to justify and support the value of the business is a pressing issue for business owners, particularly when they are looking to exit their business in the near future, dealing with a shareholder or matrimonial separation or undertaking tax/estate planni...
It is a tumultuous time for shareholders when one partner, or shareholder, decides to exit the business. is of immense importance in such a scenario, as each partner has a vested interest in ensuring that a fair price is attached to the business. Without a Shareholder Agreement or a pre-determined process for dispute resolution among shareholders, a costly and stressful litigation p...
Human error leads to mistakes and mistakes in a can prove costly. The complexities involved in valuing a business are tremendous and this process should be undertaken with due care by a licensed professional. Grossly overvaluing or undervaluing a business because of careless mistakes could prevent a transaction from occurring, leading to disputes and potential litigation down the ro...