ConcannonMiller » Business Valuation
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Get the latest updates, news, insights, observations, and guidance about business valuation for financial success on ConcannonMiller. Concannon Miller is a full-service tax, accounting, and consulting firm providing the vision, strategy, and insight that help businesses work better and people work smarter.
ConcannonMiller » Business Valuation
1y ago
When the owners of a family business are ready to sell, there are many considerations. Among the most important is handling the sale in a tax-wise manner.
In most cases, the buyer wants to make a direct purchase of the company's assets — as opposed to buying all the ownership interests in the legal entity used to conduct the business. A direct asset purchase allows the buyer to "step up" the tax basis of the acquired assets to reflect the purchase price. That means bigger post-purchase tax write-offs for depreciation, amortization, cost of goods sold and so forth.
A specific set of federal in ..read more
ConcannonMiller » Business Valuation
1y ago
The balance sheet — which shows a company's assets and liabilities — is a logical starting point for valuing certain types of businesses.
The cost (or asset) approach specifically focuses on this part of a company's financial statements. Here's an overview to help you understand this valuation technique ..read more
ConcannonMiller » Business Valuation
1y ago
When a business is owned by more than one person, it's generally advisable for the owners to enter into a contractual agreement that prescribes what will happen if an owner dies, becomes disabled, retires or otherwise leaves the company.
Some market analysts predict that the COVID-19 crisis may trigger an increase in buyouts. For example, some struggling owners may decide to throw in the towel after months of teetering on the verge of bankruptcy. Or squabbling partners may disagree about the future of the business and decide to part ways.
So, now is a good time for owners to draft or update a ..read more
ConcannonMiller » Business Valuation
1y ago
If you own a business, you're probably familiar with the protections provided by buy-sell agreements. But do you know how important these documents can be to an estate plan?
Because buy-sell agreements specify whether, and under what circumstances, owners' interests may be transferred, they can help you control the ultimate disposition of your business and achieve other important estate and succession planning goals ..read more
ConcannonMiller » Business Valuation
1y ago
Employee stock ownership plans (ESOPs) provide tax-saving opportunities for business owners who want to cash out and transfer ownership to employees without immediately giving up control of the business.
However, valuing stock held by an ESOP is an ongoing challenge for the fiduciaries who administer them, especially when the sponsoring company is privately held ..read more
ConcannonMiller » Business Valuation
1y ago
When it comes to selling your business, you must consider the buyer's perspective — not just your own — to get the deal done.
Both sides will require certain due diligence procedures, which take time and patience to get through. Here's what to expect, including some tax considerations ..read more
ConcannonMiller » Business Valuation
1y ago
In the fourth quarter of 2021, CEO resignations were up 16% over the prior year, according to executive outplacement firm Challenger, Gray & Christmas. Recent and announced high profile departures include Twitter's Jack Dorsey, Amazon's Jeff Bezos and American Airlines' Doug Parker.
This trend is expected to continue into 2022 as executives swap high-stress positions for more family time. Would your business survive if its CEO or founder suddenly jumped ship?
Large public companies often have deep management structures and succession plans in place. So, they can usually recover from the l ..read more
ConcannonMiller » Business Valuation
1y ago
Many businesses will pay less federal income taxes in 2018 and beyond, thanks to the Tax Cuts and Jobs Act. And some will spend their tax savings on merging with or acquiring another business.
Before you jump on the M&A bandwagon, it's important to understand how your transaction will be taxed under current tax law ..read more
ConcannonMiller » Business Valuation
1y ago
While preparing your succession or estate plan, it can be helpful to value your family business both internally and externally.
You might wonder what that means — because you think your company has just one value. In fact, it can have multiple values depending on the valuation standard used. The different results can help you determine whether to keep the family business, pass it on to the next generation or sell it to an outsider.
Two common standards used in valuing a family business are ..read more
ConcannonMiller » Business Valuation
1y ago
Most business owners and attorneys know the basics of the business valuation process.
For example, you might know that there are three approaches to value: the cost, market and income approaches. You might even know some of the methods that fall under these approaches, including the:
Adjusted book value,
Excess earnings,
Guideline public company,
Merger and acquisition,
Capitalization of earnings, and
Discounted cash flow methods.
But experienced laypeople also understand that the process of valuing a business is not simply a matter of plugging numbers into these "black boxes" and having t ..read more