Dividend Policy Is Part of Corporate Finance for Private Companies

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Business owners are faced with three universal questions as they run their businesses. These questions are addressed by every business every year, one way or the other, directly or indirectly, consciously or unconsciously. This post addresses these three questions.

Interim Time

Recognizing This Important Concept Can Be Key to a Successful Life

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What are you doing today to be sure you are ready to spend the time after you retire or sell your business, i.e., the rest of your life, in the style you desire with the resources needed to take care of you and your family and any other charitable desires you may have?  This post […]

Buy-Sell Agreements

The "Words on the Page" Define the Valuation Assignment for the Parties or for Business Appraisers

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The pricing mechanism is that part of a buy-sell agreement that defines how the price for transactions triggered under it will be determined.  There are three basic types of pricing mechanisms: Fixed price buy-sell agreements. The price at which transactions occur is set by agreement of the parties within some buy-sell agreements.  The price is set […]

Business Appraisal Review: A Helpful Tool in Litigation and Otherwise

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Over the years, I have been called upon to review the work of other appraisers and damages experts.  To a certain extent, the requirements for appraisal review come with the territory of being an expert witness.  Appraisers for a side in litigation are often asked to review the work of the opposing expert.  In the […]

Should Business Appraisers “Normalize” Long-Term Treasury Rates When Building Equity Discount Rates?

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The idea of normalizing Treasury yields when building up equity discount rates has been around for about a decade. I do not believe that “normalizing” Treasury rates when building up discount rates is a procedure that should be used by business appraisers. This post provides the rationale for this position.