The Story Behind the Numbers
The Psychology of the Deal…Value Doesn’t Always Equal Price
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Bargaining Position Matters. While they are frequently confused as being synonymous in the business world, the terms “value” and “price” don’t mean the same thing when it comes to business valuation. Every business ownership transfer involves negotiation, or bargaining, and bargaining position is a function of economic strength, knowledge, negotiating skills and timing. As such,Read More… |
Meet David Mitten, the Newest Addition to Our Growing Team at Capital Valuation Group
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David has joined the CapVal team as a Business Valuation Analyst, and with 12 years of experience doing financial analysis and business modeling, he has hit the ground running! You will see David in meetings and calls if you haven’t already, so we wanted to share this brief Q&A to help you get to know him.Read More… |
Why Market Comps Drive Home Appraisals, Not So Much for Businesses
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If you want to know the value of your home it makes perfect sense to look at recent comparable sales of other homes in your market. After all, this information is publicly available and provides a great deal of detail enabling you to find prior sales that are truly comparable. A quick internet search allowsRead More… |
Looking at Your Business Like a Buyer
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Can you imagine driving your car by relying on your rearview mirror instead of your windshield? It would be hard to keep driving in the right direction. If we relate that to business, a company’s financial statements represent looking in the rearview mirror because they report what has occurred in the past. On the otherRead More… |
There’s Value in the Process, Not Just the Conclusion
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“It’s the business valuation process that’s a large part of the benefit, not just the actual conclusion of value. I learned a lot about my own business by going through the process with you.” —Steve, 25-year Business Owner During our initial valuation work together 4 years ago, I recall Steve’s good-natured teasing about how manyRead More… |
3 Reasons to Talk Business Valuation with Your Clients
Cathy is the President of Capital Valuation Group, Inc., headquartered in Madison, WI. Capital Valuation Group has been helping business owners across the country understand, increase and unlock the value of their businesses for over 40 years through keynote speaking, valuation analysis, determining damages and providing expert witness testimony. Cathy welcomes conference and event speakingRead More… |
Quantitative Value Drivers
It can be tempting for business owners to focus on short-term gains versus taking the long-term view. However, the company is likely a business owner’s most valuable asset so it’s worthwhile knowing the drivers of value today so they can start to understand how every decision they make today impacts the future. Whether they want to sell in 1 year or 5+ years, the sooner they start the better because increasing value does not happen overnight. |
TIME to Drive Business Value (Part 2)
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Business valuation includes considering both quantitative performance and qualitative factors. Last month we suggested five qualitative drivers of business value to work on during COVID-19. Here are five additional qualitative factors for you and your team to consider: Value Lever #6 – Researching Alternative VendorsJust as reducing dependency on any one customer or key employee is wise, reducing dependency onRead More… |
TIME to Drive Business Value
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Last month we talked about finding opportunity in times of crisis, such as COVID-19. Before this pandemic struck, most business owners would admit it was difficult to find time to work on strategic planning for their business, including thinking about their business as an investment. When it comes to thinking about how to grow their businessRead More… |
Businesses Are Not Widgets– Let’s Stop Valuing Them Like They Are
People like to think you can take some number off a company’s income statement, multiply it by some number between 3 and 7 and get a reliable conclusion of value for the business. While this DOES provide the answer to a mathematical equation, it does NOT provide the answer to “What is the value ofRead More… |
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