The Psychology of the Deal…Value Doesn’t Always Equal Price

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…

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)

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

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…

“I Wish I Had Known About this Earlier.”

We were recently working with a successful Wisconsin business owner who has been working on his succession plan. During our initial meeting he was surprised to learn that every business has more than one value depending upon who the buyer is.  He lamented he had no knowledge or experience in thinking through the different typesRead More…

8 Ways to Build Value In a Family Business

Capital Valuation Group Madison

Dear Cathy, What would you say are the key ways to build value in a family owned business? I find myself so busy every day and yet my company’s revenue growth has been stagnant despite my industry’s moderate growth trends.  We are in the packaging industry and the company has been in my family forRead More…