Business Valuation is More Than a Multiplication Equation

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…

The Power of Having Your Business Ready for Sale At Any Time

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…

Isn’t Having a Large Customer A GOOD Thing?

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—What is it and How is it Measured?

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…

Hot Topic for Your Next Client Meeting: Value Planning

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…

COVID’s Surprising Impact on Business Value

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…