Business Valuation

Are Rules of Thumb an Adequate Way to Value a Business?

By |2018-12-28T10:48:37-05:00December 21st, 2018|Advisory, Business Valuation, Change, Preparation, Sell, Tips|

Let me begin by answering that question. No! Now it is my responsibility to explain why. While “Rules of Thumb” typically derive from industry trends and comparable company research, they miss out on vital factors that must be considered when determining a reasonable value for a business or ownership share. First, let’s start with an [...]

Planning For Your Succession? Ask Yourself These 6 Questions

By |2018-12-13T15:45:06-05:00September 26th, 2018|Business Valuation, Preparation, Retirement, Succession Planning, Value|

A captain doesn’t decide on a whim that he or she is going to sail around the world tomorrow. The voyage will take proper planning, appropriate resources, and a skilled co-captain. The same can be said for succession planning. Business owners, like captains, must plan and consider many variables before selling or transitioning their business [...]

The Impact of Qualified Business Income to the Valuation of a Pass-Through Entity

By |2018-07-16T10:52:23-05:00July 11th, 2018|Business Valuation, Change, Preparation, Saving, Tax, Tax Planning, Tax Reform|

Jeremy Green, MBA, CPA, ABV, CFE, CFCI, Senior Forensic & Valuation Associate at TDT, provides insight on the impact of business valuations of pass-through companies from qualified business income. Jeremy specializes in business valuations, forensic accounting and litigation support engagements, succession planning, and management consultation services. Unlike “C” Corporations, who are taxed on their earned income [...]

Will Corporate Income Tax Rates Impact Business Valuations?

By |2018-07-16T08:40:04-05:00June 8th, 2018|Business Valuation, Change, Tax, Tax Planning, Tax Reform|

Jeremy Green, MBA, CPA, ABV, CFE, CFCI, and TDT Senior Forensic & Valuation Associate, discusses the impact of new reform tax rates on business valuations. Jeremy specializes in business valuations, forensic accounting and litigation support engagements, succession planning, and management consultation services. Whether it be a business or an individual, we are taxed on the income earned. One [...]

Deductibility of Alimony Going Away

By |2018-08-07T14:26:43-05:00May 1st, 2018|Advisory, Business Valuation, Change, Deductions, Litigation Support, Tax Planning|

Jeremy Green, MBA, CPA, ABV, CFE, CFCI, and Senior Forensic & Valuation Associate at TDT, discusses the recent federal tax law changes of alimony payments and how that impacts involved parties. Jeremy specializes in business valuations, forensic accounting and litigation support engagements, succession planning, and management consultation services. Due to recent changes in federal tax law [...]

Cash is the Oxygen of the Business – Reasons a Profitable Business Can Fail

By |2018-04-25T09:31:12-05:00March 22nd, 2018|Budget, Business Valuation, Saving|

On a hot summer day when I was a child, I opened a lemonade stand in front of my parent’s house. Before I knew it, I had sold my entire inventory of lemonade. My sales mixture consisted of a small portion of cash paying customers driving by, however, a large portion was “credit” sales to [...]

Standard of Value in Divorce Proceedings – Getting it Wrong Could be Costly!

By |2018-04-25T10:42:44-05:00March 8th, 2018|Business Valuation, Value|

Do you recall a time when you were traveling between different states and noticed the interstate speed limits were different, sometimes 65 MPH and other times 70 MPH depending on what state you were in? It is safe to say that different states (jurisdictions) have different laws regarding the speed limits. It is the responsibility [...]

Are Non-Compete Agreements Essential to Proving Damages?

By |2019-03-15T13:24:58-05:00February 9th, 2018|Business Valuation, Damages, Litigation Support, Non-Compete, Sell|

Certain service businesses which rely heavily on their customer book of business are more likely to be damaged by the actions of an employee who has left the company with customer lists, trade secret information or other personnel and used it for their own financial benefit. Companies can incur a severe loss of value to [...]

3 Common Triggers for a Business Valuation

By |2018-02-13T15:16:06-05:00February 9th, 2018|Business Valuation, Estate Planning, Gifts, Mergers, Sell, Shareholder|

Remember when you wanted to know the value of that sports trading card or a rare stuffed animal? In the 1990’s, if your friend or colleague told you the Michael Jordan autographed rookie card was worth $2, would you believe them? The reasonable answer is “No,” right? To determine a reliable estimate of value for [...]

What Determines Fair Market Value?

By |2017-10-13T11:43:25-05:00October 5th, 2017|Business Valuation, Succession Planning|

A recent Minnesota case illustrates how multiple sides in a lawsuit can come to widely varying estimates of the value of a business.  In Lund v. Lund, 27-CV-14-20058, Hennepin County, Minnesota, the plaintiff had tried for nearly twenty years to obtain a buyout order for her 25% interest in the Lund businesses.  Lund included a [...]