The valuation of a business is prepared as of a certain date in time. This could be any date, often determined by the purpose of the valuation. A valuation prepared for estate tax purposes is as of the date of death. A valuation for divorce purposes is often the date of service. The valuation date …
Recently, a number of clients have engaged us to value their business because they do not have a firm grasp of what their company is worth and they are considering selling their interest in the near future. After we performed the assignment and met with the client to discuss the value drivers of their business, …
There is a reason it is called exit planning – there are steps required for you to ultimately leave the company you have built. One-step is to understand who will be on the other side of the negotiation table in a potential transaction. In most cases, there are five types of buyers in the market …
According to a recent PricewaterhouseCoopers (PwC) report, only 23% of family owned businesses have succession plans in place that include a documented plan, not just thoughts in the owner’s head. In PwC’s 2012 survey, 52% of family run businesses planned to pass the business to the next generation, with only 12% planning to sell the …
A handful of questions to begin – Are you thinking of selling your small and medium-sized entity (“SME”)? Is your largest asset in your estate your business? Are you the CEO, CFO, general manager and sales force of your SME? Do you fear going on a two week vacation because of the number of phone …
During the last year, I have received more phone calls than usual from business owners who believe employees are stealing inventory from them. Many of the concerns I hear from small business owners fall into two categories. The first scenario is the extremely popular and growing internet business, in which entrepreneurs keep inventory in warehouses, …
There are many ratios that a company’s lenders use to gauge the strength of the company’s ability to pay its current bills as well as its long-term debts; and still have enough cash left in the bank to use for expanding the company’s operations. One concern of lenders, for example, is: How quickly can a …
Management teams across the nation are encouraging team building among staff to encourage and promote employee friendships and to boost morale. I commend these organizations for promoting a healthy work environment which provides a social support network at both a personal and a professional level. Positive employee morale can lead to reduced employee turnover, reduced …
Let’s say you have built a successful business and are now considering selling it. You have been approached by a company that wants to acquire the assets of the business as opposed to a stock acquisition. If the business is formed as a partnership, an LLC treated as a partnership, or an S corporation, no …