There are many day-to-day decisions that we as business owners control and can adjust for; however, one significant issue that is completely out of our control is the general economy.  It’s interesting to reflect back over the past two years of business valuations and consider how the economic changes have impacted business value. The U.S. economy’s long, steady run ended in 2022 as the U.S. Federal Reserve set out to cool growing inflation. In March of 2022 the central bank began a series of 11 increases to the federal funds rate with the last increase occurring in July 2023.  O ..read more

And another year is in the books!  It’s time to gather and review our bank statements, investment statements, tax statements…and if a business is owned, wrap up year-end accounting and journal entries to finalize financial statements.  But some business owners are missing one critical year-end statement that can be a competitive differentiator…a reliable business valuation! A privately owned business is most often the owner’s largest asset.  Yet, as we’ve written about in the past, business owners will go 30+ years without ever knowing the value of this largest asset. Imagin ..read more

A business advisor recently mentioned that they were speaking with a business owner who wanted to plan for the future.  The advisor suggested that it would be wise to have a formal business valuation done so that informed decisions could be made in the planning process.  The owner responded that their business couldn’t be valued because it was too complex for someone else to understand. This business likely has numerous business segments or cost centers that the owner believes no business appraiser could understand. In reality, the more detailed and complex the financial informat ..read more

A business advisor recently mentioned that they were speaking with a business owner who wanted to plan for the future.  The advisor suggested that it would be wise to have a formal business valuation done so that informed decisions could be made in the planning process.  The owner responded that their business couldn’t be valued because it was too complex for someone else to understand. This business probably has numerous business segments or cost centers that the owner believes no business appraiser could understand. In reality, the more detailed and complex the financial inform ..read more

Often when business owners think about transitioning out of business ownership, they focus on numbers and logistics first but don’t always consider what they will do after transitioning out of ownership.  We’re talking about the big ‘what’s next?’ question that almost all of us face at some point in our careers, and the reaction business owners have seems to fall into one of two camps. While some are ready to transition at any moment that the opportunity arises, others may delay preparation in fear of the unknown. One place to start is to define what the finish line looks like.  ..read more

I recently sat in a medical clinic waiting room waiting for a friend’s procedure to be completed when I came upon a New York Times article that stated it is our life expectancy, not just our age, that is increasingly figuring into calculations about whether certain medical screenings and treatments are appropriate.  The crux of the article was when deciding if preventive screenings and treatments are no longer advisable, it is important to consider more than the patient’s age. What if a 76-year-old patient plays tennis twice a week? Had parents who lived well into their 90s? Or…has he ..read more

Time for a business valuation? Here’s what to expect Business owners know their business better than anyone on the outside ever will.  But when a business valuation is needed most owners have no idea what to expect. What information will be requested?  How long it will take? What is the process? We work to make our process as transparent as possible, so let’s look at the valuation process and documents that are needed when having your business valued with Capital Valuation Group. There are four phases to our work that help business owners know what to expect along the way.  ..read more

Are you wondering what the value of your business is if you sold to a competitor or other type of “best fit” buyer, (i.e., buyer with a strategic interest in the acquisition of your business)? Different than selling to an inside employee group or passive investor, the sale of a business to a best fit buyer warrants two value conclusions (fortunately this doesn’t mean paying for two valuations!). We think of these two values as the “goal posts of value.” Before we discuss these goal posts of value, it is important to remember that business value has two primary drivers that any wise buyer w ..read more

Are you wondering what the value of your business is if you sold to a competitor or other type of “best fit” buyer, (i.e., buyer with a strategic interest in the acquisition of your business)? Different than selling to an inside employee group or passive investor, the sale of a business to a best fit buyer requires two value conclusions (fortunately this doesn’t mean paying for two valuations!).  We think of these two values as the “goal posts of value.” Before we discuss these goal posts of value it is important to remember that business value has two primary drivers that any buyer w ..read more

We have to start thinking positively about the words “exit planning.”  You say the words, and owners shut down – could be because of emotional attachment, the fear of change, lack of resources…. Could be worse – could be lack of awareness or procrastination.  But guess what?  Studies have shown that 75% of those who exit “profoundly regret” the decision within 12 months (Price Waterhouse).  How can we change the paradigm and become part of the 25% (or help our clients become part of the 25%) who enter the third act of their lives without regret?  We have to change ..read more