Buyer Beware: A Buyer’s Guide to Business Valuation
Buying a business without a clear understanding of its value can lead to costly mistakes. A business valuation and a thorough assessment of financial information help you make informed decisions and protect your investment. You have likely heard the term “let the buyer beware.” If buyers do not thoroughly evaluate a product before making a …
Transition and Exit Planning for Small Business Owners
You’ve spent years building your business. What happens next? Exit planning helps you define your goals and prepare for your transition, whether it’s years away or closer than expected. How long do you plan to continue working? Who will oversee your business when you’re no longer involved? If you are unsure of the answers, it’s …
Understanding the Discount for Lack of Marketability in a Business Valuation
What can you do to reduce or eliminate the marketability discount? Understanding the Discount for Lack of Marketability (DLOM) helps you plan and make informed decisions about the value of your business. A client asked, “what can I do to reduce or eliminate the marketability discount?” The quick answer is “nothing,” but I realized in …
Why and How to Create Goodwill
Goodwill is often misunderstood, especially when it doesn’t appear on your financial statements. Understanding what goodwill is and how it is created can help you build a business with value beyond its tangible assets. A client had a family member ask why there was no goodwill on her balance sheet – that surely her business …
Buyer Beware: A Buyer’s Guide to Business Valuation
Buying a business without a clear understanding of its value can lead to costly mistakes. A business valuation and a thorough assessment of financial information help you make informed decisions and protect your investment. You have likely heard the term “let the buyer beware.” If buyers do not thoroughly evaluate a product before making a …
Understanding Business Valuation
Knowing what your business is worth is essential for making informed decisions about growth, ownership, and future transitions. A business valuation provides the insight needed to plan, avoid costly mistakes, and align your business with your long-term financial goals. Why Business Valuation Matters What is your business worth? How is it valued? The answer is, “It depends.” Whether …
409A Valuations: What They Are and When They Are Required
If your business offers stock options or other deferred compensation, a 409A valuation is required. Understanding when it applies and how it works helps ensure compliance and avoid unnecessary risk. Definition of Section 409A A 409A valuation is required if you intend to offer any non-qualified deferred compensation plan to your employees in a privately …