Request a Strategy Call and we will get in touch with you
Business Valuation Insights
Tip for Maximizing Business Value: Diversify Your Customer Base
February 5, 2014 / in Business Valuation, Exit Planning / by Al Statz
Our seller and business valuation clients are usually proud of their company’s long-term relationships with major clients, and with good reason. Having a high percentage of business with a few customers can be a very profitable and personally satisfying way to run a business. It allows management to focus its attention and fine tune company operations to deliver exceptional service in a very cost-efficient manner. Customer acquisition expenses (marketing, sales, estimating, etc.) can be greatly …
Related Party Transactions in Valuation
January 15, 2014 / in Business Valuation / by Jim Leonhard
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 transactions between the companies were priced at market, versus prices that unfairly benefit one or the other business. I investigated …
Pro’s and Con’s of Price Formulas in Buy-Sell Agreements
January 3, 2014 / in Business Strategy, Business Valuation, Buy-Sell Agreements / by Al Statz
Exit Strategies is regularly called upon to determine the value of closely-held company shares for buy-sell transactions. Common events that trigger a transfer of shares are when a shareholder retires or resigns from employment, is fired, dies, or becomes disabled, divorced or insolvent. There are several facets to successful buy-sell transactions, but valuation is typically the most contested issue. The pricing method prescribed in your by-laws, shareholder, buy-sell or stock restriction agreement, as the case may be, …
Upcoming Event: A Fast-Paced Overview of Business Valuation for Attorneys
December 27, 2013 / in Business Valuation, News / by Al Statz
On January 29, 2014, Al Statz of Exit Strategies will be speaking to the Sonoma County Bar Association in Santa Rosa, California. The workshop, titled “A Fast-Paced Overview of Business Valuation for Attorneys”, will rapidly cover a wide range of valuation topics that will help attorney’s spot important issues and use business valuations more effectively in their practices. The comments will address valuations in estate, gift and tax, shareholder disputes, CC§2000 cases, marital dissolution, and of course …
Tip for Maximizing Business Value: Build for the Future
December 20, 2013 / in Business Valuation, Exit Planning / by Al Statz
Is your business built for the future? Consumer behaviors, markets, regulations and technology are changing so fast these days that many business owners are having trouble keeping up. And if the business doesn’t have a strong future, it simply won’t trade at a high valuation, or many not have any value at all. Private business owners must constantly monitor changes in their industry and marketplace, and make appropriate investments and take appropriate steps to insure the …
Why Should I Bother Valuing My Business?
December 13, 2013 / in Business Strategy, Business Valuation, Exit Planning / by Al Statz
A new article at Forbes.com addresses a question in the minds of many small business owners, “Why Should I Bother Valuing My Business?” The author explains several of the common reasons small business owners have their businesses appraised by an independent business valuation expert, as they prepare for a sale, buy-out, contingencies, retirement, or passing the business on to children.
Factors to Consider When Valuing a Closely Held Company
November 20, 2013 / in Business Valuation / by Al Statz
Revenue Ruling 59-60 was developed by the Internal Revenue Service to provide guidelines for the valuation of closely held companies. The ruling specifically addresses stock valuations for gift and estate tax purposes, yet the principles set forth are commonly applied in a wide spectrum of business valuations, including those prepared for employee stock ownership plans, charitable contributions, shareholder buy-sell agreements, mergers and acquisition transactions, SBA loans, corporate reorganizations, marital dissolutions and bankruptcies. Revenue Ruling 59-60 suggests analyzing …
Importance of a Proper Valuation before Offering a Business for Sale
November 9, 2013 / in Business Valuation, Exit Planning, Sell a Business / by Bob Altieri
Lately I’ve been spending a lot of time working on an acquisition search for a client, and in this process I found many business offerings that were priced far too high and several that were under-priced. From a buyer and seller perspective, overpricing is a massive waste of time. At the other extreme, when price is set too low, seller’s leave hard-earned money on the table. Both situations can easily be avoided by obtaining a proper business …
IRS Requires Qualified Appraisals from Qualified Appraisers
November 6, 2013 / in Business Valuation / by Al Statz
Taxpayers should be aware and tax practitioners must know that Internal Revenue Service regulations for filing of estate and gift tax returns and charitable contributions involving business interests worth more than $5,000 require a qualified (business) appraisal by a qualified (business) appraiser. How do our friends at the IRS define these terms you ask? Please read on … The IRS defines a qualified appraisal as an appraisal report that: is made, signed and dated by a qualified appraiser …
Engagement Review: Valuation for Partnership Dispute
October 3, 2013 / in Business Valuation / by Roy Martinez
Recently, Exit Strategies was engaged to perform a business valuation to resolve a dispute between partners in an Environmental Consulting Firm. Facts and Circumstances There were four equal partners (LLC members in this case). The firm’s business model had evolved over the years in response to changing market conditions, and the owners’ objective was to have one of the partners leave the firm and have the remaining partners acquire the equity of the departing partner. …
Exit Strategies Group, Inc. is a leading provider of business sales and acquisitions, business valuations, and exit planning services for family owned and closely-held companies since 2002.
DRE #01878920
Member of
