Category: Valuations, M&A and Due Diligence

April 18, 2022
Taking a Red Pen to Financials for Valuation Purposes

Financial statements are an important source of data for valuing a business. But they tell only part of the story. An accurate business valuation hinges on a comprehensive understanding of the subject company’s relative performance and its future earnings power. To help cl...

November 15, 2021
6 Steps to Prepare Your Business for a Sale

The COVID-19 pandemic has put unprecedented stress on private business owners. Some are now considering selling their businesses. Before putting your business on the market, it’s important to prepare it for sale. Here are six steps to consider:...

February 13, 2019
Using a Fraud Expert to Head Off Bad Mergers

Mergers and acquisitions are filled with risks, some of them unavoidable. But buyers can avoid risks associated with cooked books and other forms of deceptive accounting used by a seller to distort the value of its company. Before closing an acquisition, engage a forensic ac...

September 10, 2018
Valuation Issues in your Buy-Sell Agreement

Every business with more than one owner needs a buy-sell agreement to handle both expected and unexpected ownership changes. When creating or updating yours, be sure you’re prepared for the valuation issues that will come into play....

June 7, 2018
Could a Long-Term Deal Ease Your Succession Planning Woes?

Some business owners — particularly those who founded their companies — may find it hard to give up control to a successor. Maybe you just can’t identify the right person internally to fill your shoes. While retirement isn’t in your immediate future, you know you mus...

May 17, 2018
Business Valuation Process: What to Expect

Many business owners who inquire about business valuations have a very limited understanding of what the valuation process entails.  I’ve had well-meaning but unknowing clients hand me a couple years of Quickbooks P&Ls and say “call me when it’s done."...

February 15, 2018
When Using an EBITDA Multiple Isn’t Optimal

Often when we talk to clients, attorneys, or other professionals about business value, they want to think in terms of EBITDA multiples. It is, after all, the standard valuation metric in the M&A world, and for good reason....

January 1, 2018
Do Reviewed or Audited Financial Statements Add Value?

Many privately held companies have their financial statements compiled, reviewed or audited due to requirements from a governmental agency, lender, or a bonding company, but what other advantages can these services provide to a company besides meeting a requirement?  ...

October 25, 2017
Valuation Often Affects Succession Plans in Hard-To-See Ways

Any business owner developing a succession plan should rightfully assume that regular business valuations are a must. When envisioning the valuation process, you’re likely to focus on its end result: a reasonable, defensible value estimate of your business as of a certain ...