I recently sat in a medical clinic waiting for a friend’s procedure to be completed when I came upon a New York Times article that stated it is our life expectancy, not just our age, that is increasingly figuring into calculations about whether certain medical screenings and treatments are appropriate. The crux of the articleRead More…
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…
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…
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…
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…
Having a trained, loyal workforce in place helps maintain a healthy, vibrant culture, which is considered an intangible asset in the world of business valuation. In fact, one of the 8 Key Value Drivers of a privately owned business is ‘Employees and Culture.’ In the simplest terms, a company whose team experiences low turnover andRead 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…