Just Elementary, Inc. » Entries tagged with "Business Valuation"
Difference Between Goodwill & Blue Sky in regards to business valuations
The terms Goodwill and Blue Sky are often used interchangeably. A primary reasons for this is that it is assumed that they are the same thing. For practical purposes, in regards to business valuations, there is a distinction between the two terms. Goodwill: Let’s start with Goodwill. A conventional definition of Goodwill would be the amount of money paid for an on-going business beyond its book value. A simple example is a business that has $600,000 in tangible … Read entire article »
Filed under: Business Valuation
Eminent Domain – Getting the Right Value and Knowing Your Rights
Eminent Domain is a scary sounding proposition. Your property and/or your business can be shut down and taken away from you against your will. The real estate has value, but what about the business located at the real property? How about the value of the business? What are your options? How can you make sure you get a Fair Market Price for the business? Courtesy of the Partners at Nossman, LLP, a California Eminent Domain … Read entire article »
Filed under: Business Valuation
Business Valuation Multiples & Multipliers, Why Your Business is not just Two Times the Profit
There are a lot of commonly used profit multipliers to determine the value of a business. You may have heard of ‘2 times the profit’, or any other version of it such as three times the profit as an ad hoc Business Valuation. The crux of the matter is: Which multiplier applies to your business and how does it fit in to a Business Valuation? The rest of the post is below the video. The short answer … Read entire article »
Filed under: Business Valuation
What is Your Business Worth? Different Factors Affecting Business Valuations
There are a lot of commonly used profit multipliers to determine the value of a business. You may have heard of 2 times the profit, or three times the profit, but do they apply to your business? The short answer is no, a Business Valuation is affected by non discrete factors, including the following. The reason for this is that there are too many variables in the phrase ‘2 times multiplier of the profit.’ Effect of Industry Type … Read entire article »
Filed under: Business Valuation
Navigating Write Offs and Addbacks in the Process of Buying and Selling a Business
What impact on the bottom line profit and overall value of the business do write off have? One of the commonly cited perks of owning a business is the ability to write off expenses and reduce the tax bill. Write offs are fairly common for business owners, but they have an adverse affect on the bottom line profit of a business, which affects the overall Business Valuation for the business. How does this happen? Well, if a … Read entire article »
Filed under: Business Valuation
Financing Capital Expenditures
A big part of the success and value of a business is in the cash flow management. Which is significantly impacted by Capital Expenditure, commonly referred to as CapEx. Many businesses require a Capital Expenditure Investment in Equipment or other machinery (FF&E) that needs refreshing on a regular schedule. So, the question comes down to how to manage these expenses. Financial Reserve Account One option is to set aside a Financial Reserve on a yearly basis. Doing this is … Read entire article »
Filed under: Business Tips, Business Valuation
Keys to Getting Investor Money & Investments on Shark Tank
This episode features the return of Lori Greiner to the Shark Tank, as she will alternate with Barbara Corcoran in Season 4 episodes. First into the Shark Tank was Back 9 Dips. Back 9 Dips is the brainchild of Dominique & Kevin Mealy. Dominique & Kevin Mealy product is a collection of blended chicken dips that you can find in grocery stores like Publix and Winn Dixie. The business wasn’t big at the time of taping, and as such, the Sharks did not demonstrate strong … Read entire article »
Filed under: Business Tips
Why James of Vino Di Copa was Right (Not Wrong) to Turn down the offers from the Shark Tank
There was a lot of negative commentary against James Martin of Copa Di Vino on twitter and even on the Copa Di Vino facebook page. The main sentiment among the negative commentary was that James Martin of Copa Di Vino “blew” his second chance in his repeat appearance on the set of Shark Tank. But, do the numbers agree that he blew his chance? First we’ll break down the numbers, and then describe how it played out. So let’s break this down in order of presentation on the … Read entire article »
Filed under: Business Tips, Business Valuation
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