Should your accountant undertake your business valuation OR should you approach an independent valuation professional? There are pros and cons associated with each. Your accountant, while not formally or technically trained in business valuation, likely has an intimate understanding of your business, more so than any independent entity would. Read More
We completely understand. You have a sentimental attachment to your business having built it from the ground up. But have you ever considered what potential purchasers see when they look at your business? So let’s get down to brass tacks. What is the purpose of ? Business valuation is at the top of the age...
Business valuation is a vital component to an effective planning strategy. It allows entrepreneurs to understand what drives the value of their company and implement key changes in their business model to prepare for the future. Without a reliable third party valuation, the business owner may arrive at an unrealistic sense of how much the company is worth which will likely be at odds with what potential inves...
“By failing to prepare, you are preparing to fail”- Benjamin Franklin
A good plan today can save you from a failed exit tomorrow. Even if you are just starting a business, you should plan your exit before actually beginning the business venture. If you do you will be ahead of the other half of all business owners who do not. To h...
Exit planning is essential if you want to maximize the value of your company prior to an actual sale or transition. Business owners should also have a formal exit plan in place to ensure there is a contingency plan in place in the event of death, divorce, disability, dispute, departure or natural disaster. Look no further than the current COVID-19 pandemic and its impact on so many businesses around the world. Having a formal exit plan in place provides you with the control to determine how a...
The current Pandemic and ongoing economic crisis may have caused the value of your client’s company to decline. This may be an opportune time to consider an estate freeze to lock in the company’s current low value and reduce taxes ultimately payable on death by the client’s estate. Some of your clients may be faced with having to determine the during these times. This could be for tax/estate planning purposes, transaction purposes or dispute related purposes (e.g. commercial, shareho...
It is easy to criticize valuation clauses in most Buy-Sell Agreements as being inadequate. Read More
For typical business owners, the answer to one question determines their ability to leave their businesses successfully: “How much money will I get when I sell?” This is one of the reasons why owners should know the value of their businesses....
For most business owners in the lower and middle markets, the business itself is the owner’s most valuable resource. While owners work within the business, it’s their income and perks that have immediate, tangible value. As owners and advisors , owners must confront the fact that what the business is worth to them rarely lines up with that the business is worth to others. In many...
When working with business owners interested in selling to a third party, need to do three things: (1) help owners set goals that will allow them to determine whether an offer from a third party is “good” or “bad,” (2) educate them about the sale process, and (3) prepare their companies for sale. However, some business owners are boundlessly optimistic about their sale prospects. This boundless optimism can make their business susceptible to Deal Killers.