Understanding Valuation Adjustments

One common step in all business valuations is the “search for adjustments” – whether it be a public company with GAAP accounting or a small pass through entity.  Valuation analysts are (almost) always looking at past performance as a proxy for future value.  In doing so, we need to understand what the “real” earnings capacity of the company is.  Unfortunately, the story isn’t always so clear.  Myriad  factors cloud the question of “what’s real?”  Nonetheless, analysts work through a process to start quantifying these changes – or Adjustments – to earnings to realizing the real number.   From there, we can work through modeling performance, risk, and ultimately value.

Why do we care?  A few reasons: Continue Reading…

Common Issues When Valuing a Small Business for Divorce

Every valuation engagement is unique and dependent upon a wide range of considerations, observations, and assumptions.  One business can have multiple valuation conclusions based on the purpose at hand, intended user, date of the valuation, state of the economy, revenue/earnings stream considered, and normalizing adjustments utilized in presenting financials to name a few.  The following article highlights the most common issues associated with divorce valuations. Continue Reading…

How To Get a Business Loan

Your small business is ready to grow and you need a loan to make it happen. Just like with a personal loan or a mortgage, you will want to shop around and find the best rate and terms to meet your needs. Being prepared will be key to expediting the process. Follow these four basic steps and watch load offers roll in.

1.  Improve your personal and business credit scores.

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2018: Year of the Deal

As we get to the close of the year we can look back and see – definitively – that it’s been a great year for deals in the lower middle market.  From our point of view all metrics are positive: closings? Check.  Full pipeline? Check.  Time to closing? Getting shorter.  LOI’s per deal?  Robust.   Aces, right?  Of course now we turn our attention to FY18 and start thinking about the economy, the Administration, and myriad other issues.  So will 2018 treat us well?  #youbetchya #YearOfTheDeal  #OneProblem (Here’s why –>)  Continue Reading…

State of GovCon M&A: 2018 Sneak Preview

Despite declines in the overall market, M&A activity relating to government contractors has remained quite active. Within the larger trend of agency and military projects adhering to the current president’s priorities, here is a look at the major trends shaping the M&A landscape for government contracting. Continue Reading…

Fiscal Fitness Checklist: Get Ready for ’18 Now

Running your business requires you to manage dozens of tasks each day, and delivering a quality product or service to your customers is the first priority. Some owners become overwhelmed by daily business operations and neglect their financials, which may cause big problems down the road. Use this list to evaluate your financial fitness and to keep your business on track.

An example

Assume, for example, that Julie owns and operates WoodCreations, a customized furniture manufacturer that generates $10 million in sales each year. The company buys wood and other components parts to create high-end furniture.  What to do? Where to start?  Good thing we have a handy 15 point plan…  Continue Reading…

The Unsolicited Offer: What to Do?

So you’ve received an offer to purchase your business.  Perhaps a competitor asks you to lunch and casually broaches the subject.  Or a vendor makes an overture to purchase your company.  Maybe a business broker calls and has a client that wants to make an offer to purchase your business.

As a valuation firm, we see this scenario all the time.  More often than not, we receive a call from the seller trying to figure out what to do. Continue Reading…

Business Valuation and Divorce – Tis The Season

Regardless of your profession, we have a few common denominators: the (loathed) Patriots will be playing football, the Ground Hog will be wrong, and a goodly number of our clients will be getting divorced.

That’s right- family law practitioners know this well, and the statistics bear it out- the end of January is officially divorce season.

With that in mind, what better time to cover some basics on valuation matters related to divorce? Continue Reading…

Avoid business “Holiday Weight”- 15 Steps to Corporate Financial Fitness

Running your business requires you to manage dozens of tasks each day, and delivering a quality product or service to your customers is the first priority. Some owners become overwhelmed by daily business operations and neglect their financials, which may cause big problems down the road. Use this list to evaluate your financial fitness and to keep your business on track.  Continue Reading…