We talk about the importance of understanding, increasing and unlocking the value of a business and while much of what we write and teach about relates to understanding how business valuation works, here we are focusing on increasing the value of a business. While there are many quantitative and qualitative levers that impact the valueRead More…
Here’s a scenario we see occurring frequently: A 100% owner of a business wants to sell a 10% equity interest in their company to a key employee so they have some “skin in the game” and are less likely to leave and go elsewhere. Let’s assume the business owner has recently had a business valuationRead More…
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…
Since CapVal was founded in 1974, we have made it our goal to maintain a team of professionals who have expertise in a variety of cross functional topics. Our founders discovered that different training, education, and experience leads each of us to approach the business valuation process from different perspectives. A business valuation or damagesRead 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…
Succession planning is something we talk about on a daily basis as a part of business valuation. We always like to reinforce that shifts in the division of work and transition of leadership can happen long before anyone retires or sells their shares of a privately owned business. As our team at Capital Valuation GroupRead 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…
As you may have heard us say previously, every business has more than one value, depending upon who the buyer is. Different types of buyers are motivated differently based on what they could do with the business if they were to own it, as highlighted on our Buyer’s Chart. For example, some buyer types areRead More…