On Tuesday, November 18, 2014, Chris Mercer will conduct a 100-minute webinar on the topic of “Unlocking Private Company Wealth: A Tutorial for Business Advisers.” The webinar is being sponsored by Valuation Products and Services and begins at 12:00pm (Central). For more information on the content of the webinar, view the video from Chris. There is also a link to register.
The following appeared in a recent issue of the BV Wire from Business Valuation Resources. New resource for BV experts in an advisory role BV experts can act as advisors to help business owners understand value and help them see how they can tap into that value. A new book, Unlocking Private Company Wealth, by […]
We have been talking about managing private company wealth in numerous posts on this blog and in my forthcoming book, Unlocking Private Company Wealth: Proven Strategies for Managing the Wealth in Your Private Business. To facilitate this discussion, we need to have an understanding about how different valuation concepts enter into the process of ownership […]
On Friday, August 15, 2014 I spoke at a conference of the Society of Financial Service Professionals in Orlando. Florida. It was the first time I have spoken before this group whose members include many financial planners–all of whom have at least one and many of whom have more than one professional designations. I attended […]
Occasionally, you may pick up a new business book and can’t wait to read it because you can tell from the beginning that it brings a fresh perspective to a known problem. Ian Campbell’s new book, 50 Hurdles: Business Transition Simplified, is one of those books. Let me introduce you to this wonderful book now.
If you are approached by a single prospective buyer who wants to deal exclusively with you (or your client), what do you do? Is a “proprietary deal” right for you?
Buy-sell agreements are ownership transition plans in disguise. Few business owners think about their buy-sell agreements in this light, but if your agreement is triggered, either through the death of a shareholder or otherwise, then ownership will change hands. Your buy-sell agreement is really ownership transition on autopilot. The real question is whether you, the other owners and the company will land safely when a trigger event occurs or if some or all of you will crash and burn. This short post addresses a simple question: Do you know what will happen if your buy-sell agreement is triggered?
The reasons given by most companies for accumulating excess assets are really excuses. This post provides five reasons why it is important not to accumulate non-operating assets. The way to avoid excess asset creep is with a well-thought out and executed dividend policy, which is also discussed.
Both business appraisers and market participants who buy or sell companies typically consider a number of adjustments to a company’s income statement in their valuation processes. These adjustments are called normalizing adjustment, because they take reported financial statements and make adjustments to see what “normal” earnings look like.
Are the earnings in your business identifiable? Are you clear regarding what portion of the revenue stream compensates you and your fellow owners for their labor and what portion is a return on your investments in your business? I’ve often said, there are worse things in life than paying taxes. If you pay taxes on your company’s earnings, no one will question them. They are identifiable earnings and the only kind of earnings that buyers will pay for are identifiable earnings.
