In 2012, I wrote a post on my former blog, Valuation Speak, titles Zynga and the High Cost of Concentrations. In that post, I talked about two key concentrations that were causing its stock price to be battered. The first had to do with a concentration in revenue in two games, Farmville and Mafia Wars. […]
Last week, I received an email from Janet, a recurring client asking to have a discussion with me about the value of recurring revenue. The question was interesting and stimulating and, I believe, of interest to many readers of this blog. This is a “first look” at recurring revenue. I plan to take at least a couple of other looks in the near future.
Buy-sell agreements are critical corporate documents. I’ve said that many times and in three books on the topic. This post is about a case in which the parties did not have a buy-sell agreement. They were involved in litigation over the buyout of one 50% owner (not in management) by the other (in management). There was a trial and, following the trial, a private settlement. I was involved in the case and so now am providing an analysis of the case.
Buy-sell agreements are critical corporate documents. I’ve said that many times and in three books on the topic. This post is about a case in which the parties did not have a buy-sell agreement. They were involved in litigation over the buyout of one 50% owner (not in management) by the other (in management). There was a trial and, following the trial, a private settlement. I was involved in the case and so now am providing an analysis of the case. The text of the analysis begins:
After several years of litigation involving a number of hearings and trials on various issues, a trial to conclude the collective fair value of a group of related companies known as the AriZona Entities occurred.
The Court’s decision in the AriZona matter was filed on October 14, 2014. I have not written about the AriZona matter because I was a business valuation expert witness on behalf of one side. The parties recently closed a private settlement of the matter, so there will be no appeal.
With oil prices dropping briefly below $40 per barrel on Friday (August 21, 2015) and the stock market dropping sharply in the recent past, investors in the public markets are being advised not to panic. The headline for the front page of the Saturday/Sunday Edition of The Wall Street Journal (August 22-23, 2015) reads “Stock Plunge Picks Up Speed.” In light of the circumstances, what happened to the value of closely held and family business in America over the last week?
So many questions that a business owner must ask. And answer, if he or she hopes to have successful management and ownership transitions and a successful business end game that prepares him or her for the rest of life. Many of the questions are interrelated and the answers to some will influence the answers to others. I pose the following questions as a starting point for discussion between owners, their families, their key employees, and their advisers. At the conclusion of the questions, I suggest that you can begin to work on answers by examining your buy-sell agreement. That process will get you in the mode of asking and answering critical questions during the interim time between now and your business end game that will insure that you transition ownership and management smoothly and prepare for the rest of your life.
This is the second in a two-part series: Where Do You Want the Ownership of Your Company to be in 3, 5, or 10 Years? In this first post, we introduced the Ownership Transfer Matrix. In the this concluding post, we dive deeper into the ownership question.
This is the first in a two-part series: Where Do You Want the Ownership of Your Company to be in 3, 5, or 10 Years? In this first post, we introduce the Ownership Transfer Matrix. In the concluding post, we dive deeper into the ownership question.
When I read about Uber’s most recent financing, which valued its equity at $51 billion, I thought about FedEx Corporation, a Memphis-based company. I then wrote a blog post titled Uber Market Cap of Equity Exceeds that of FedEx. This past week, my thoughts about FedEx turned towards AutoZone, another Memphis-based company, as well as […]
Recently I spoke with a business owner who had almost sold about half of his company to a private equity investor a few years ago. The facts will be changed in this story so that neither he nor I should be able to recognize his company. However, the conversation highlights a potential opportunity for owners […]
