The articles are provided for information purposes only, and are not intended as legal advice.


You have been operating your business for many years and you have been having marriage problems for years.  One day your spouse wants finality to the relationship and wants a divorce.  How do you cope? (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


There are many different methods of valuing a business.  Some investors use discounted cash flow, others use a multiple of earnings, some look at appraised assets.  If you are in the same business as the business for sale that you are looking to acquire, what synergies exist between the two companies?  The amount of savings that can be generated needs to be factored into the purchase price.  If you are looking to acquire a competitor who keeps low balling the prices, if you were to acquire them, that gets rid of a competitor which will result in higher prices, you need to factor that into the amount that you will offer for the business for sale. (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


What happens if the owner of the business dies prematurely, is the business worth the same or did the value of the business just decline?   Does the estate have to sell the business (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


The definition of fair market value is a business is worth what a willing buyer is willing to pay.  Too many people believe that their business is worth more than it is.  Unlike a house, (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


The last 6 to 12 months have been difficult for many businesses.  Some have gone out of business, others who were large enough were able to reduce the quantity of people working (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


The previous two blogs show why businesses although they may appear to be the same are all different.  There are many different items which need to be factored in to the valuation (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


You are your reviewing your personal situation and you need to value your business, for estate planning purposes or in case you are planning to sell the business.  You see ten (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


There are many ways to value a company.   Some people use a multiple of normalized earnings. There are different multiples for different types of businesses and different locations of businesses.  A business (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


When you buy a business, you are buying assets of a company but in reality, you are buying a stream of earnings to be earned by those assets.  The business assets are a means to make money but if they did not (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


Valuation of a business

December 11th, 2008

If you sales are dropping and costs or rising, owners unfortunately will end up having to reduce or eliminate their salary.  Fluctuating the owners’s salary should have no impact on the valuation on the sale of  a (more…)


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