Selling Your Business: 5 Reasons Why You Need an Expert Valuation

In my last blog, "Why Net Working Capital Must be Considered in Transactions," we looked at the potential purchase or sale of a business. Today, we'll focus on the selling side. Selling a company can be a daunting task for a small business owner.  With countless legal experts, consultants, bankers and accountants from which to choose, a small business owner may be asking, “What services do I need and who should I hire?”

One very important and often overlooked step in the process of selling a...

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Free Offer Friday - Fraud Prevention Ebook

National statistics reflect that many employees, at all levels within a company, can be dishonest. Employers lose approximately 5% of their gross income due to employee theft.

How can you, a corporate executive, prevent fraud and employee theft in your organization?

Download this helpful e-book for more information.

 

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The Insanity Workout and Accounting for Stock Option Modifications

I feel like every Saturday morning when I wake up and turn on the TV, I see infomercials for the Insanity workout.  Developed by fitness guru Shaun T., the commercial boasts that the workout’s “max interval training” can completely makeover your body in 60 days. 

Having a toddler at home, the only free time I have for an “insanity” workout involves chasing my son around the house to prevent him from running into everything headfirst;  with that said, I cannot testify to the merits of Shaun T.’s...

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How Does Risk Impact the Required Rate of Return?

Here is the short answer:  risk and the required rate of return are directly related.  As risk increases, the required rate of return increases.  As risk decreases, the required rate of return decreases.  Let’s take a closer look at what that means and how it affects the value of a company.

Be careful not to confuse actual rate of return with required rate of return.  The former reflects historical financial performance and calculates the company’s actual return on investment while the latter...

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Free Offer Friday: Accounting, Tax & Valuation Considerations When Issuing Stock Options E-Book

Interested in learning more about the accounting, tax and valuation considerations you should take into account when issuing stock options?  After reading this e-book, you'll have a better understanding of these basic valuation concepts:

  • Stock option landscape
  • Accounting & tax ramifications of issuing stock options
  • Practical considerations when issuing stock options
  • The Backsolve Method

Click here to download our free e-book.

For more information on our Valuation & Litigation Advisory Services,...

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Control is worth its weight in Ari Gold?

When Ari Gold, a character from the HBO critically acclaimed series “Entourage”, was negotiating the purchase of the McQuewick Agency with Terrence McQuewick, Ari’s former boss and sworn enemy, Terrence was offering to sell the Agency to Ari without the consent of Terrence’s other partners.  It was obvious that Terrence didn’t obtain his partners’ approval given their reaction once Ari took control of the Agency (they were less than pleased). 

The story line in this episode isn’t far from...

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Buyers and Sellers Can Bridge Gap With Earnouts, But Must Know Accounting Rules

I’m pretty sure my first experience with earnouts came at the lunch table with my buddies in grade school. “I bet you I can throw my sandwich wrapper into the trash can from here.” “Oh yeah?” “Yeah. I’ll bet you a dollar.” “You’re on.”While transaction earnouts involve many more dollars than my story, as well as much more complex terms, the concept is generally the same — an earnout is a payment based on performance. For example, a deal may include a $20 million cash payment and an earnout that...

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Valuation & Litigation Advisory Insights: May 2013

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

If you have any questions about any of these articles, please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.

If you would like to...

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City of Akron’s Internal IT System Hacked by Turkish Radicals: Taxpayers’ Social Security Numbers Compromised

Steps to Take Now That Your Personal Information Has Been Distributed

Today, many were awakening to learn that the City of Akron’s internal computer system was hacked by a group of Turkish radicals.  According to Ohio.com, 47,452 entries of personal information associated with income tax filings including names, addresses, social security numbers and even credit card information has been compromised.  The hackers have even gone so far as to post some of this “stolen” personal and private...

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Merger of Equals

Merging entities together is nothing new.  Companies merge all of the time.  Government offices even merge every so often, with local governments having been known to share services or annex one another.  What about merging credentialed professionals into one?  That’s a little more unusual. 

It’s not very often that you see credentialing bodies consolidate or merge certifications, but this is just what the National Association of Certified Valuators and Analysts (“NACVA”) is doing with two of...

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