Expert Business Valuation Course – Market Methods for Small Businesses

Expert Business Valuation Course – Market Methods for Small Businesses

Market Method for Valuing Small Businesses and Advising Buyers and Sellers of Small Businesses are the two of the presentation topics for professional business valuators and financial advisors at an upcoming conference.

Greg Caruso, J.D., C.P.A.,C.V.A. will be presenting two morning continuing education courses at the New Jersey NACVA Conference on Wednesday, November 20, 2019 in Edison New Jersey (registration details below)

The first course, Market Method for Valuing Small Businesses, will cover the market method for use with small business valuation.  Emphasis will be on selection of comparable set, evaluating comparables based on profitability, charting and graphs, use of statistics, reviewing cash flow, estimating the value and, finally, adjusting the value based on balance sheet matters as compared to estimated comparables.

This course is an Intermediate level and attendees will be able to:

  • Identify SIC and NAICS codes and further useful sorts such as revenue and cash flow ranges in order to select valid market comparables
  • Differentiate between when to use SDE and EBITDA as an cash flow measure
  • List the strengths and weaknesses of the market method and how to adjust both the subject company data and the comparable date to reduce error
  • Describe the differences between the way DealStats records asset sales and stock sale transactions
  • Adjust the cash flow value found for variations in balance sheet assets and liabilities.
  • Be able to estimate a business value using the market method

The morning’s second course, Advising Buyers and Sellers of Small Businesses, will review how CPA’s, CVA’s and other advisors can best work with clients who are preparing to buy or sell a business.  Focus will be given to helping the client assess underlying needs and desires so they are prepared for the emotional strain of this type of life change.  Listening skills, negotiation skills, how to work with brokers and other participants will be discussed.

The objectives of this Intermediate level course are to

  • Identify issues and questions that lead to meaningful conversations about plan
  • List the steps in an organized transaction
  • Describe the elements to actively listen and engage with clients
  • List requirements for an SBA loan to finance a business

Click Here to R.S.V.P

Details:

8:00 a.m. to 4:30 p.m. (Continental breakfast,lunch and light refreshments served.)

Location
Hilton Garden Inn – Edison
50 Raritan Center Parkway
Edison, New Jersey 08837

$195

Earn up to 8 Hrs CPE

Click Here to RSVP

Click  here for more about NJ NACVA
Click here for more about NACVA  

 


Greg Caruso is an expert who works throughout the Mid-Atlantic with business owners to create and realize business value through business valuation, succession planning, and private company M&A. He is licensed in Maryland as an Attorney, Certified Public Accountant and Certified Valuation Analyst.
Over the past 15 years successfully completed over 50 business merger or sale transactions
He has been an advisor on acquisitions, exit strategies, and valuations of over 250 firms.
He is Editor-In-Chief of “Around the Valuation World” the two most interesting hours in business valuation, a monthly webinar produced by the NACVA

 

In Your Business Valuation, What “Interest” is Being Valued?

When most people think of business valuation they think of valuing the business or company as a whole.  Yet, often only specific components of the business ownership need to be valued.

These components are called business Interests.

Different business interests have different rights and therefore may have different values.  Interests can include an individual shareholder’s interest (for example, a 5% common stock interest) or class of stockholders interests where there are multiple classes of stock (preferred stock or common stock), a debt obligation owed by the company, convertible debt, and other variations.

When a specific business interest is being valued it is important to understand the rights and restrictions of all other interest owners in order to properly value the business interest.

Often an operating agreement or shareholder agreement will restrict rights of some owners and give rights to others.  That too acts to increase or decrease value.

Different interests will have different rights to control the company including appointing officers, directors, setting salaries and the like (generally control owners).  Minority owners are non-control and do not have the ability to set these type of policies and terms.  Clearly control stock is more valuable than non-control.  In fact minority interests can even be unmarketable or completely unable to sell their stock further reducing the value.

To find the correct value of the business interest, it is important to understand the interest being valued and the rights available to that interest owner and other interest owners.

 


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.

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