Archive: valuation

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How Will the COVID-19 Crisis Affect the Value of Your Business?

We’ve all witnessed the recent share price volatility in public equities. While there may be some debate about exactly when investors began to price in the impact of the COVID-19 crisis, the downward trend is clear. Year-to-date through March 30, the S&P 500 index had fallen about 19% and the Russell 2000, an index of […]

How to Value a Restaurant Business

Investors are constantly looking to purchase or buy into existing restaurants, while existing restaurant owners are always looking to sell a piece or their restaurant business. As acquisition deals are made in the restaurant industry, the main question that arises is, “How do I value the restaurant?” Since many valuation methods are available, care should […]

Doctors and Divorce: What You Need to Know

Going through a divorce can be a difficult time for anyone involved. It’s an emotional situation with financial implications for both spouses; however, the process is even more complicated when one of the spouses owns a medical practice. In a divorce, most assets are added to the “marital pot” and split amongst the spouses. Assets, […]

Normalizing Owner Compensation

When performing a business valuation, I always consider making adjustments to revenue and/or expenses of the business in order to normalize its income statement. These adjustments, among many other valuation techniques, allow me to understand the true economic performance of the business. Owner compensation is one of the most common expenses to be adjusted in […]

Risks Impacting the Value of Your Construction Company

Business valuations help you understand your construction company’s strengths, weaknesses, vulnerabilities, and market share in the event of its sale. In any valuation, it is important to assess financial risk—income potential vs. vulnerability to disaster. To better measure such risk, consider the following factors: Quality of Earnings How profitable is the company? How steady have […]
October 15, 2018

What’s Your Construction Company Worth?

It is important that you have a comprehensive understanding of the three primary methods used to estimate the fair market value of your company and the eight factors to consider in valuations of a closely held business. Typically, the owner of a construction company works a lifetime to build a business and provide financial security […]
October 5, 2018

Two Methods for Valuing Your Construction Company

“What’s the market value of my company?” is a question business owners often wonder about. However, coming up with an answer is far from easy. To help you make a ballpark estimate of your company’s value, here are instructions any contractor can use. We’ll address two commonly used valuation methods: capitalization of earnings and adjusted […]
September 21, 2018

What’s it Worth to You? Why You Want to Know Your Construction Company’s Value

Do you know how much your construction company is worth? Probably not. But knowing the value of your company should be an important part of your business plan. Why Would You Need a Valuation? The most obvious reason for wanting a valuation is if you’re considering selling your business. You never know when an attractive […]
September 7, 2018

The Market is Changing – Do You Know the Value of Your Construction Company

In 2018, construction contractor company profits are on a rise, backlogs are strong, and the pipeline of available work is steady. As a result, now may be the best time for you to consider a sale of your equity interests. However, before you can consider a sale, you need to know the current value of […]

Valuation Hindsight Challenged in Recent ESOP Case

A recent U.S. District Court opinion has reiterated the principle that valuations should be based on information known or knowable as of the valuation date. In the case of Fish, et al. v. GreatBanc Trust Company, et al., Case No. 1:09-cv-01668 (N.D. Ill. Sept. 1, 2016), a valuation expert’s opinion was rejected because it relied […]