Private company valuation

Accurate Asset Assessment for Fair Distribution: When planning an estate, one of the primary concerns is ensuring a fair and equitable distribution of assets among beneficiaries. A professional valuation provides an accurate and unbiased assessment of the true value of all assets, including real estate, investments, businesses, and personal property. This is essential to avoid disputes among heirs and ensure that your wishes are carried out as intended. Compliance with Tax Regulations: Estate planning often involves navigating complex tax laws. Accurate valuations are crucial for complying with estate and inheritance tax regulations, such as the Internal Revenue Code in the United States. A professional valuation helps in accurately reporting the value of the estate, ensuring compliance, and potentially minimizing tax liabilities. Valuation of Business Interests: For estate holders with business interests, determining the value of these interests is often complicated. Professional valuation firms have the expertise to assess the fair market value of businesses, considering factors like market position, earning potential, and other unique attributes. This is vital for both tax reporting and fair distribution of the business among heirs. Handling Unique or Illiquid Assets: Estate planning can involve unique or illiquid assets, such as art, antiques, or intellectual property. Professional valuation experts have the specialized knowledge to accurately assess these types of assets, ensuring that they are appropriately valued and accounted for in the estate plan. Regular Reassessment for Changing Values: Asset values can fluctuate over time due to market changes, economic conditions, and other factors. Regular reassessment of asset values by a professional is important to keep the estate plan current and reflective of true asset values. This helps in maintaining fairness and accuracy in the estate plan over time.

If you have ever traveled on the subway in London or the train system in England, I am sure you have heard the phrase “Mind the Gap” numerous times. “Mind the Gap” is the British version of the American admonishment “Watch Your Step.” The wording of the English warning was created in the late 1960s for the London subway system. The phrase alerted riders to be aware of the space between the platform and the train cars. This phrase is utilized almost ubiquitously around the world.   As Sister Barbara Thompson wrote in “Daughters in My Kingdom: The History and Work of Relief Society”: “Many of us have gaps in our own lives. Sometimes it is the difference between what we know and what we actually do or the gap between our goals and what we actually accomplish. These gaps can be reminders of ways in which we can improve or, if ignored, can be stumbling blocks in our lives.”   A Tool to Mind the Gap in Manufacturing How we “mind” the gaps in our business lives and in our personal lives can have a huge impact on our wherewithal in the future and how well we sleep at night.  (A part of my “coffee” story.) At High Value Manufacturing 

Benchmarking benefits plans during a M&A acquisition in the middle market can provide several advantages, including: Identify cost savings opportunities: By comparing benefits plans with industry benchmarks, it is possible to identify cost savings opportunities that can help optimize benefit plans and reduce overall costs. Ensure competitive benefits: Benchmarking can help ensure that the benefits being offered to employees are competitive and attractive, which can help retain talent and increase employee satisfaction. Facilitate integration: By benchmarking the benefits plans of both companies, it is possible to identify areas of alignment and opportunities for integration, which can help streamline the process and reduce redundancies. Mitigate risk: Benchmarking can help identify potential compliance issues, legal risks, or other areas of concern related to benefits plans, which can be addressed proactively to mitigate risk. Establish clear communication: Benchmarking can help establish clear communication between the companies involved in the M&A acquisition, which can help build trust and facilitate a smooth transition.

Program produced by Mark ReddingPresidentEquity VisionsMr. Redding has over 40 years of experience in the manufacturing industry and served as the Chief Executive Officer of Banner Industries (Banner Service, Banner Medical Innovations and Banner Real Estate) from 2003-2020. He initiated the effort to acquire Banner from the Jack Sneeden family and assembled private equity sponsorship to finance the acquisition. Under Mr. Redding’s leadership, Banner has increased revenue from $17M in 2003 to over $100M in 2019. Over this period, Mr. Redding has been instrumental in assembling the management team, installing management systems (ERP conversion) and locating and integrating Banner’s 2 add-on acquisitions.Gabrielle JenkinsPartnerWaypoint Growth AdvisorsGabrielle Jenkins, Managing Partner, is a business professional with 30 years of diverse experience in Fortune 500 and entrepreneurial environments in public and privately-held organizations spanning the retail, supply chain, and financial services industries. As a partner at Waypoint Growth Advisors, she helps companies maximize their return on their biggest investment, their people, utilizing such tools as consulting, behavior and value assessments, job analysis training and development.She is a graduate of Lehigh University and a Certified Professional Behavior, Values and Attributes Analyst. She has lead lectures in a variety of public forums including the Association for Corporate Growth, Technology Capital Network at MIT, and the BIO International Convention.

Program produced by Gregory R. Caruso, JD, CPA, CVA, is a Partner at Harvest Business, LLC. His unconventional career path gives him a unique perspective on, and expertise in, business valuation. Having served as a business valuator with 100’s of small business, a business broker responsible for 60+ transactions, a real estate broker for 30+ years, a transactional attorney, and a serial business owner, he understands the topic from a variety of viewpoints. He also serves as Editor-In-Chief of Around the Valuation World, the National Association of Certified Valuators and Analysts’ monthly business valuation continuing education webinar.

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What is your goal for your business? As fractional CFOs, when we first meet with our clients, this is among the first questions we ask. Your goals will inform much of our work supporting your company – whether we focus on preparing you for a near-future exit or growing and building the value of your business over time. This is what makes our fractional CFOs – many of whom are also CEPAs – a vital (and often missing) piece of the exit planning puzzle. Many business owners enlist exit planning experts as they approach the exit process, bringing in an army of resources to make the most out of what has already been built. A fractional CFO, however, becomes embedded in your business over time and, in the process, comes to serve as a value growth advisor – a financial expert who can help you 

ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business.   In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile?  First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital.  In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan.  Accessing Business Capital Through ROBS  Here are some points to remember about how the flow of money works when using a ROBS strategy:  The new business entity to be funded must specifically be established as a C-Corp.  After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com. 

As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot.  Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success.   Do you need to get in your Owner Sweet Spot?

GAAP traps often occur when a business owner sells a company to a third party. The transaction is commonly memorialized by a Purchase Agreement. That agreement contains certain representations (or “reps”) and warranties. Some of these are common sense and should pose no problem to someone who has operated a good business. The Accounts Receivable represent money that is actually owed to the company. Taxes have been filed on a timely basis. The seller doesn’t know of any pending litigation. The owner has the right and authority to enter into a sale agreement. There is one, however, that is frequently required by attorneys who don’t understand privately held business, and agreed to by owners and their attorneys who don’t understand what they are guaranteeing. They are Generally Accepted Accounting Principles, or GAAP. What is GAAP? To start, the term “Generally Accepted” is misleading. It could easily be interpreted as “what everyone typically does.” Nothing could be further from the truth. GAAP is determined by two organizations, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). Per I

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