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Calculation or Valuation Engagements – Which is Best for Your Business?

Posted by Michael Bilby on Thu, Nov 29, 2018

When it comes to business valuations, not all valuation reports are created equal.

In fact, the professional standards for both the American Institute of Certified Public Accountants and National Association Of Certified Valuation Analysts specify two distinct types of valuation engagements: a calculation engagement and a valuation engagement.

While the reports produced by both engagements share many common characteristics, it is important for business owners to understand the key differences and appropriate uses with each engagement.

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Topics: Business Valuation

Buy-Sell Agreements are a Must for Closely-Held Business Owners

Posted by Michael Bilby on Tue, Oct 2, 2018

For closely-held businesses with multiple owners, it’s certainly a best practice to have a buy-sell agreement signed and in place.

A buy-sell agreement is a contract between the co-owners of a business which stipulates the terms and conditions for the buyout of an interest in the company should one of the owners need to leave. Simply put, the agreement acts as a sort of “pre-nup” between the owners that addresses the exit conditions in the event of an owner’s death, divorce, disability, personal bankruptcy or violation of a company contract or policy.

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Topics: Business Valuation

How Much is My Brewery Worth? A Valuation Primer

Posted by Andrew Desiderio on Tue, Sep 25, 2018

Whether you’re looking to buy a brewery, sell a brewery, gift some ownership to a partner or successor, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.

There is no black and white formula for determining what a brewery is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.

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Topics: Brewers, Business Valuation, Manufacturing

Thinking of Buying Another Construction Firm? What to Consider

Posted by Concannon Miller on Thu, Sep 20, 2018

Buying another construction firm can be an attractive way to grow your company's revenue base. A merger or an acquisition can allow you to: 

  • Add a new subcontracting specialty,
  • Acquire an experienced labor force to reach new markets, and
  • Deepen your penetration into the market your firm already serves.
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Topics: Construction & Real Estate Development, Business Valuation

Business Valuation Methods: Pros & Cons for Business Owners

Posted by Michael Bilby on Thu, Jul 12, 2018

Valuing an interest in a closely-held business is often more art than science. There is no perfect calculation or analysis that can always answer the question “What is it worth?”

While there are certainly subjective elements to any business valuation, there are three main approaches to valuation that are widely accepted and most often used by Certified Valuation Analysts (CVA) and other professionals that perform such services. These approaches are the asset or cost based approach, the income approach, and the market approach.

Let’s look at the pros and cons, as well as situations where their use is most appropriate.

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Topics: Business Valuation

Business Valuation: When Businesses Need One and Why to Use a CVA (Video)

Posted by Denise Hozza on Tue, Apr 3, 2018

Obtaining a business valuation from a Certified Valuation Analyst is more accepted by the IRS and will stand up better in court. If you don’t have an accurate valuation, there could be business and tax consequences.

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Topics: Business Valuation

Divorce and Family Business: Obtaining a Valuation and Other Financial Steps to Consider

Posted by Concannon Miller on Tue, Jul 11, 2017

Divorce is difficult for all parties. But when there's a family business involved, divorce can be a nightmare. Take a look at a couple of common questions:

Should the enterprise be sold? Selling the business makes it easier to allocate the assets owned by the couple. But that solution is not common, since it generally leaves one or both spouses looking for work. Economic reality may force ex-spouses to try to continue working together, although taking that path obviously has problems of its own.

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Topics: Business Valuation

Shareholder Agreements: Plan Ahead to Help in Disputes and Valuations

Posted by Concannon Miller on Tue, May 16, 2017

Shareholder disputes are common occurrences in today's complex business world. These disputes can often be divisive, long-lasting and expensive. They can arise in almost any privately-owned business – sometimes without warning.

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Topics: Business Valuation

How Much is My McDonald’s Restaurant Worth? A Valuation Primer

Posted by Ryan Moore on Tue, Mar 14, 2017

Whether you’re looking to buy a McDonald’s restaurant, sell a restaurant, gift some ownership to a Next Gen, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.

There is no black and white formula for determining what a McDonald’s franchise is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.

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Topics: McDonald's management, Business Valuation

What 2017’s Economic Uncertainty May Mean for Your Business Valuation

Posted by Concannon Miller on Tue, Feb 7, 2017

Businesses currently face numerous uncertainties in the marketplace.

As President Trump and Republican congressional leaders work toward fulfilling their campaign promises, tax laws could substantially change, the estate tax could be repealed, and various laws and regulations – including the Dodd-Frank and Affordable Care Acts – could be repealed or revised.

Interest rates and inflation could both rise. Economic relationships with other countries could also change.

Some of these changes could be good for your business, while others could have negative effects on the value of your business.

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Topics: Business Valuation

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