Business Valuation... Real Talk

Over the last several months there has been a big energy shift towards ESOPs. This episode will focus on what is driving this energy shift and what business owners need to know before moving forward with an ESOP. Owners need to understand the importance of having a feasibility study performed.

Family-owned businesses are the backbone of the American economy. Studies have shown about 35 percent of Fortune 500 companies are family-controlled and represent the full spectrum of American companies from small business to major corporations. Understanding the how and the why when it comes to understanding the use and purpose of a valuation for a Family-Owned business plays an integral part in not only the growth of the value in the business but the country as well.

Cash flow issues and inadequate money management are consistently viewed as the top reasons why businesses fail. It is certainly vital to owners, founders, and boards to sharpen their cash flow forecasting ability and develop a strong understanding of one the most important valuation metrics Free Cash Flow (FCF).

Something you should be aware of regardless of who you make that winning business pitch to, be it a bank, private equity group, venture capitalist, or angel investors. Each one of these groups has a different objective or purpose on why they will invest in your company. 

For Founders and Early-Stage companies, raising capital is priority number one. Understanding why is the first step. Followed by understanding the types of capital raised. Leaving you with the types of sources of a capital raise. 

As we move further into the new year, as an Early-Stage Founder, it is important to understand where you go to raise capital and how you position your business to find the right partner. This is a three-part series. Part 1: Understanding the stages of a capital raise and the platforms that raise capital.

With the Tax Cut and Jobs Act sunset provisions in 2026 quickly approaching, Family
Limited Partnerships have become a very popular vehicle for families that have
appreciable assets. Learn how valuation discounts can be a valuable tool to understand
as you transfer your assets.

Valuation multiples provide a simple yet effective way to assess the worth of a business by comparing it to similar companies in the market. However, using valuation multiples is not just about plugging in numbers and getting a result. It requires a strategic approach and considering multiple factors that can cause different results in the value of your business. 

As a sports fan, most if not all, have a dream of being a sports franchise owner. In this episode, being a minority owner in a sports franchise, may not be as difficult as it may appear. And how the valuation of the franchise can assist you in your decision, for buying the big ticket!

Whether we are backtracking to 2019 or discussing it now in 2023, the most important tool in a company tool box to deal with partnership discussions, how to reward and retain talent, or even understand the current state of the business is having a business valuation. This episode, we will break down each area and show how having a valuation could make those conversations and decisions a little easier.