Chris will make himself available for limited consulting about topics related to Business Valuation.
Board/Shareholder Day Retreats
If you are thinking about management and ownership transitions in your business, you will want to set aside up to several hours to have a retreat with your board of directors and key owners to talk about key topics such as your buy-sell agreement, existing management and ownership transition plans, dividend or distribution policies, and the potential for using corporate finance tools to help you and other owners to diversify. At your invitation, a limited number of your company’s advisers are welcome to attend.
In order to see the highest benefit of this session, you will share historical financial statements with me in advance in confidence, as well as other pertinent background information about your business so that I can be familiar with your situation. Prior to the retreat, I will share with you summary information that we have put together to facilitate discussion. We will then have a conference call to tailor the nature of the retreat you desire to have. I will travel to the specified location and meet with your board and/or owners.
We can discuss the specific details and financial arrangements for this type of session when you call me (at 901-685-2120) or email me (at firstname.lastname@example.org).
Buy-Sell Agreement Review
You should review your buy-sell agreement and other important corporate documents and agreements every other year or so. I read and review buy-sell agreements from business and valuation perspectives for clients. My main focus is on the valuation mechanism, but I will share my thoughts about the entire document.
My review can help assure that the agreement will work to provide a reasonable valuation when triggered. I also focus on what happens with trigger events and any interaction between trigger events and the valuation mechanism.
I will read/review your buy-sell agreement (or the relevant portion of your operating agreement or partnership agreement) and provide short memorandum outlining my comments, observations and recommendations for your consideration. I will also have a conference call with you, your other owners, or advisers for up to an hour to talk about your buy-sell agreement situation. The cost of this service is $3,000, payable in advance.
I am not a lawyer and will make no legal recommendations. You might want to have your attorney involved with the review so that he or she can talk to you about any desirable drafting changes.
See my Buy-Sell Agreement Review Checklist if you need motivation to consider having your agreement reviewed.
If you are interested in this service, contact me (901-685-2120, email@example.com)
Annual or Recurring Valuations
I believe that most successful closely held and family businesses with minimum enterprise values of $3 to $5 million and more should obtain annual appraisals. Annual appraisals are advantageous for many reasons, including:
- Setting the price for your buy-sell agreement
- Providing valuation guidance for life insurance needs
- Assisting your advisers with gift and estate tax planning
- Managing the wealth in your business
- Establishing prices for other internal transactions
- Helping to enhance value by working on the factors noted in your appraisal that detract from value
Think about it. You would fire your financial adviser if you didn’t get quarterly results on the performance of your profit sharing plan or your other liquid assets. Your ownership stake in your closely held business likely makes up the majority of your wealth. Without annual appraisals, you cannot know with certainty how this investment is faring.
Call me if you or your advisers want to talk about obtaining an annual appraisal for your business. (901-685-2120 or firstname.lastname@example.org)