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…

You have an interested buyer…now what? 3 Ways to be prepared.

Numerous clients have shared recently that they are seeing an increase in unsolicited inquiries about purchasing their business, some of which are legitimate inquiries from buyers or business brokers.  While it is natural to be excited that you are a ‘target’ for an interested buyer, it is critical to slow down, stay calm and respond,Read More…

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…

“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…

Who Might Be a Buyer For My Business?

Dear Cathy,   About 10 years ago I bought out two of my siblings/partners in an artisan cheese business in order to keep our family business within our family. I now have majority share with myself and one younger sibling left as owners in the business. I’d like to more clearly understand the options forRead More…