Articles

There are many purposes for which an owner of a small business may need an appraisal of his or her business. These might include estate, trust and tax planning; the gifting of a business interest; marital dissolution; sub chapter “S” elections; buy-sell agreements; the pursuit of venture capital; or the acquisition or sale of the …

One of the first challenges a broker faces when inking a new listing is the establishment of an asking price for his client’s business. As we all know, successful business intermediaries are quite adept at developing appropriate valuations for their clients, especially those who specialize in a particular industry. For example, a business broker or …

It’s not an uncommon story – a few years ago you made the decision to go into business for yourself. It was tough and scary in the beginning while you managed cash flow out of your wallet, set up your business systems and eventually hired your first employee. After awhile, though, you began to see …

It is the rare business owner who has not at some point in his or her career experienced the clammy hands and elevated blood pressure associated with trying to meet a payroll. But how does one tell when the day-to-day challenges of running a company have given over to the pressures of operating a business …

Luca Pacioli, an Italian Friar from the 15th century A. D., is credited with having invented the double entry accounting system. It’s been driving business owners crazy ever since. The modern version of the three basic financial statements derived from this system include the profit and loss, or income statement, the balance sheet and the …

It’s generally accepted by those who specialize in the art and science of business management that anyone who is responsible for the stewardship of a business enterprise should have three management objectives: 1) to achieve some desired level of growth; 2) to attain an acceptable level of financial performance; and 3) to create equity value. …

As a business appraiser, I sometimes hear business owners claim that the value of their company should include their “sweat equity.” Sweat equity, of course, refers to the long hours, dedication and, in many cases, personal hardship, contributed by a business owner to his or her enterprise, especially in the early years, in order to …