Anybody can Google the definition of business value: “the value of a business today is the present value of future economic benefits.” That is straightforward if you are a business appraiser, but for the average business advisor or owner, business valuation can feel like a black box. However, it does not have to be thatRead More…
When a business valuation expert, also known as an accredited business appraiser, sets out to value a business, they are looking at it as though there will be a sale. Sometimes a business is valued for an actual sale while for purposes such as gifting and divorce, a hypothetical sale is assumed. In all cases, aRead More…
January means it’s time for year-end financials, and as business owners everywhere are looking at revenues and profit numbers from the prior year, there is an abundance of insight hidden in the financial statements that many business owners are missing. What if you offered a unique conversation with the business owner that illustrates how theRead More…
Nobody would argue 2020 has been an interesting year, but out of challenge can come opportunity. As we look back on the year, we thought it would be a good time for you to consider how you or your clients did on the list of value drivers we shared earlier this year in our 2-partRead More…
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…
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…
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…
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.
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…
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…