So Your Valuation Isn’t What You Expected

Business valuation is the process that determines the economic value of a business unit or a company. Business owners get business valuations for many reasons, such as tax planning, estate planning, exit/entry of a partner, sale value, etc. A professional business valuation is admissible in a court of law to provide proof of the company’s […]

After the Valuation: Create Value for Owners, Investors, Employees, Customers

A business valuation reveals the company’s current market value (CMV), accurate data every business owner needs even when not planning to exit. Business valuation benefits companies at every stage of their life cycle. Knowing the accurate value of their companies helps owners better plan business and growth strategies. Business valuation also pertains to taxation purposes, […]

Funded Buy-Sell: Using the Insurance Option for “Buy-Out” Funding

Undoubtedly, the most valuable employees of any business are its owners. They are the foundation of the business. They are the organizers and operators and have taken on a financial risk above and beyond every other employee. Their expertise and experience are irreplaceable, with a value far beyond the amount of stock they own. If […]

After the Valuation: Create Value for Your Suppliers

Most business owners and entrepreneurs are unaware of the business valuation process, what it entails, and how to go about it. The business valuation process is complex, regardless of the selected valuation approach. It helps one understand the company’s value-generating elements, measure their performance, know the business’ competitive position within its market, and clarify future […]

After the Valuation: Focus on Your Strengths, Eliminate Your Weaknesses

You take a risk founding a business, and you take an additional risk not knowing its value. Routine business valuation verifies your company’s worth and identifies those corporate traits that enable you to make informed business decisions to focus on growing the company. Once the valuation is done, what should the savvy business owner do […]

Search Funds Defined: Pros and Cons

Search funds make good potential buyers for small- and middle-market business owners looking to exit their companies. H. Irving Grousbeck, a professor at Stanford University’s Graduate School of Business, created the search fund concept in 1984, and by 2020, the number of search funds had grown to over 400. Search fund entrepreneurs differ from private equity investors, […]

After Your Valuation: Enhance Corporate Culture for Value Creation

To maximize their companies’ value, business owners develop business growth plans with defined goals. It can be a real challenge to achieve those goals if they don’t know where to begin. To successfully build business value, owners should focus on three things: Understanding what the business is worth currently, Identifying the value gap between the […]

What Is Recapitalization?

During times of financial turbulence, a business may require restructuring. A company with a high debt-to-equity ratio may re-purchase its shares from the open market, increase its price, and improve its equity ratio. Companies trying to avoid hostile takeovers or wanting to derail acquisition often issue more debt to reduce their appeal to buyers. Companies […]