The risk of rushing to democratize business valuation The importance of business owners understanding the value of their business cannot be understated. Far too many business owners believe that a business valuation is not needed unless selling is imminent. This thinking stunts the owner’s ability to manage their business as an investment—to know with certaintyRead More…
There is no shortage of new ideas and books each year on how to best manage your business. Most of these business management books are providing ideas which will ultimately (hopefully!) result in increasing the value of your business as an investment. In actuality, when done thoroughly, the business valuation process encompasses an analysis andRead More…
We often talk about the importance of a business owner working to make their business less dependent on them. Let’s face it, the entrepreneurial personality is frequently very self-driven, and enjoys controlling their own destiny. In the beginning, often the business IS the owner. The owner wears numerous hats and takes on the majority ofRead More…
When talking with business owners and/or their advisors it is common for us to hear that the process of working together came to a halt when it was time to enter a value for their business. Business owners almost always have a good idea of the value of their home, investments, boat, car or otherRead More…
Business owners or advisors will reach out to us needing a value conclusion and are sometimes surprised by the number of questions we ask before we even get started with the appraisal. These questions are critical to defining the scope of work and making sure, when we are finished with the assignment, that we haveRead More…
You’ve heard that it’s risky to “put all of your eggs in one basket,” but did you know that the risk of having too few customers can actually translate into decreased business value How does Customer Concentration impact value? First, as a reminder, business valuation is based on both qualitative and quantitative factors that impactRead More…
Goodwill, or ‘blue sky,’ is probably the most misunderstood component of business valuation. Business owners are often curious about goodwill in their business and how it is valued, and they are also often confused.In their minds, the intangibles including renown of the business, the years of successful business operation, their client list, their trained staff,Read More…
This time of year many business owners spend an inordinate amount of time looking at their financial statements, especially related to tax planning for their business. Business owners are keen on using their financial statements to work on tax planning but fail to see how time spent on value planning can increase the value ofRead 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…
Something notable happened with many business owners while managing through COVID that could impact the value of their businesses. It doesn’t have anything to do with their financials, and it doesn’t get much attention in the news. We’re talking about delegation. Many business owners responded to COVID by putting delegation of business operation decisions andRead More…