The Standard of Value is probably the most basic assumption of a business valuation and affects the result. It allows the valuator to design the valuation report to fit the needs of the users of the appraisal or valuation. There are different Standards of Value used by business valuators, A note – the different valuation certification organizations sometimes use either the term “valuation/valuator” or “appraisal/appraiser.” For the average person, the terms valuation and appraisal are interchangeable. However, some like to say a “valuation” is for business interests and “appraisal” is for real estate. I use the term valuation. Though I…
Life Insurance Can Play a Role In Both An Exit Plan and an Estate Plan
Most people have an aversion to life insurance salespeople, they can be aggressive and often unpleasant. But don’t let that negative sales culture prevent you from recognizing the role that life insurance can play in your estate and exit planning. But even if you have a fairly modest business and estate, life insurance can play an important role. Of course, life insurance can increase the size of your estate should you pass early. And for young families in need of a breadwinner, life insurance can provide invaluable financial protection in the event of premature death. In large estates (businesses) life…
So You Want To Start A Business: Part 2 – Know The Business
This is a continuation of my last post. In Part 2, I discuss in general terms the positive characteristics of the proposed business you should consider. There have been libraries written on what makes a startup successful. I will not repeat any of that here, as it would take a river of ink (pixels). Instead here are some items I have personally found useful to consider. This discussion is definitely not comprehensive! Just things to consider. Why are you trying to start this particular business? Maybe you have a killer, versatile skill set that would make any entrepreneur jealous. And…
So You Want To Start A Business: Part 1 – Know Thyself
Starting a new business enterprise is a formidable undertaking. It involves both the mind and the heart for the new venture to succeed. It can be quite fun to imagine what a new business started from nothing may look and feel like. But prospective entrepreneurs should do some very hard, steely-eyed thinking before starting this task. Good planning is essential. At the risk of being a curmudgeon, and dampening the excitement, here is a quick guide for how to think through and plan for many of the decisions that need to be made. This topic will be covered in two…
M&A Valuation Trends as of November 2021
Alteris LLC tracks Mergers & Acquisitions (M&A) valuation and other trends/metrics from its various partners and research sources. We will periodically report on what we find here. For more detailed information on valuations and M&A trends contact us directly. Please note that this information is a summary, generalized for many different types of companies of various sizes. This data is collected from various sources and includes proprietary deal information from over 200 PEGs (Private Equity Groups) on $10-250mm sponsored transactions, with an average TEV near $50mm. The information is available as of November 2021 and covers the third quarter of…
Elder Abuse And Financial Fraud
A very unfortunate fact of life is that the elderly among us are often the victims of financial fraud and abuse. It is more common than many people realize. I have had personal experience with this as an elderly uncle of mine was a victim. For me, this is a very important topic. My uncle was suffering from terminal cancer and was living out his last days in hospice care at a nursing home. As a result of his condition, he suffered from a diminished mental capacity. That was exhibited through rather difficult and contrarian personality characteristics. I was overseeing…
Happy Employees = More Profits
Can treating employees well increase profits? Does the so-called “Golden Rule” – treating others as you would like to be treated – pay off in the end? The answer is yes. Owners of successful privately held businesses know that a happy and contented workforce is a critical component of their success. How do happy employees contribute? Three basic ways. First, there will be lower employee turnover. This reduces new employee hiring and training expenses. It eliminates the learning curve for new employees. Second, a well-treated employee is more likely to put in the additional hours to get the job done…