Entries by Jim Leonhard

Is Your Business Prepared for Sale?

Serious potential consequences await owners who neglect to prepare their business, and themselves, for a future sale or transfer. Here are ten exit planning mistakes to avoid: The business experiences a sudden, catastrophic loss and all of the owner’s financial eggs are in the business. A perfect buyer suddenly appears and makes a fantastic offer, […]

Why Should I Only Retain a Certified Valuation Expert?

If you’re thinking of using a non-certified or non-credentialed individual to value a business, consider the following recent judicial ruling. The United States Tax Court ruled on February 11, 2014** that a valuation conducted by a non-valuation credentialed individual used for an estate tax filing was materially deficient.  The individual who prepared the valuation was […]

Increase Business Value with Agreements

I recently completed an exit planning valuation of a business that enjoyed a very favorable discount on purchases of a key component used in the assembly of its products. The discount, negotiated many years ago, was a handshake deal between the founder of the company and his former employer who manufactured the component.  This large discount […]

Related Party Transactions in Valuation

I was recently engaged to value a client’s interests in two businesses. These two businesses had several shareholders in common, and the businesses were doing business with each other.  We refer to these as related parties and related party transactions. Our client’s ownership percentages were different in each business, so we were concerned with whether […]