Business Valuation Does Not Have to Feel Like a Black Box

Anybody can Google the definition of business value: “the value of a business today is the present value of future economic benefits.” That is straightforward if you are a business appraiser, but for the average business advisor or owner, business valuation can feel like a black box. However, it does not have to be thatRead More…

Don’t fight over business value

When a business valuation expert, also known as an accredited business appraiser, sets out to value a business, they are looking at it as though there will be a sale. Sometimes a business is valued for an actual sale while for purposes such as gifting and divorce, a hypothetical sale is assumed. In all cases, aRead 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…

Looking at Your Business Like a Buyer

Can you imagine driving your car by relying on your rearview mirror instead of your windshield?  It would be hard to keep driving in the right direction.  If we relate that to business, a company’s financial statements represent looking in the rearview mirror because they report what has occurred in the past. On the otherRead More…

There’s Value in the Process, Not Just the Conclusion

“It’s the business valuation process that’s a large part of the benefit, not just the actual conclusion of value. I learned a lot about my own business by going through the process with you.” —Steve, 25-year Business Owner     During our initial valuation work together 4 years ago, I recall Steve’s good-natured teasing about how manyRead 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.