Valuation Articles

A Different Look at Valuing Your Company

June 27, 2012

Is there pricing elasticity? What’s proprietary? What’s the company’s competitive advantage? Status of employment agreements and non-competes? Post-Acquisition: Are there cost savings after purchase? Are there significant capital expenditures pending? Is there synergy with the seller? Is it perceived the integration will go smoothly? Are there substantial cross-selling possibilities? Will the cultures blend? The Financials:…

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The Value of a Business: Get to the Heart of the Matter

June 27, 2012

What is the value of your business? There are many ways to approach that question — based on complex formulas or just a good hard look at the balance sheet, but no answer based purely on numbers is going to be exactly right. Even factoring in that most popular of abstracts — goodwill — the…

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12 Ways to Increase the Value of Your Company

June 27, 2012

1. Build a solid management team. A business with sales of $5 million and up needs a full complement of officers and directors. Such a team might include: a COO, a CFO, a sales manager and, depending on the type business, an IT director. It is also beneficial to create a Board of Directors with at…

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What Is a Company Worth?

June 27, 2012

This question can only be answered by addressing other related questions, specifically: Who’s asking and for what purpose? From the perspective of the owner, prospective buyers, the IRS, lenders and divorce & bankruptcy courts, the value of a business for purposes of a sale, estate planning, orderly or forced liquidation, gifting, divorce, etc. can be…

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Buying a Franchise: What It’s Worth to You

June 27, 2012

If you are considering entering the world of franchising, an important consideration is assessing the value of the business. All of the following factors either affect or help determine valuations of typical franchise operations: 1. Franchise Agreements: Typically, franchise agreements can cover a period of twenty years; sometimes with added options. In most situations where…

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