Business Valuation

October 30 , 2019 | Posted by John Eberhart |

Normalization Adjustments are Essential in Valuation

Fine-tuning financial statements helps a business valuation expert compare the subject company’s performance to the financial performance of similar public or private companies. In turn, normalization is critical when gauging risk, estimating future earnings, quantifying valuation discounts and selecting guideline comparables to use in the market approach.

Types of adjustments

Normalization adjustments generally fall into…

August 14 , 2018 | Posted by John Eberhart |

How Do Valuations and Calculations Differ?

Most business valuation professional standards recognize two types of engagements: calculations and valuations. But in most litigation contexts — particularly when the business valuation professional will testify as an expert witness — only a full valuation report will suffice.

Conclusion of value vs. calculation of value

Valuation professionals follow different standards, depending on the organizations…

Pepperdine Report Reveals Optimism for Sales of Main Street and LMM Firms

Advisors who aid business owners and buyers in selling and buying businesses expect a 60% increase in deals in 2016, according to the “Market Pulse Quarterly Survey Report” for the fourth quarter of 2015 (4Q15). This report is part of the Pepperdine Capital Markets project, which conducts ongoing research concerning the cost of private capital…

September 29 , 2015 | Posted by John Eberhart |

Driving Value with Business Valuations

As a business owner, increasing profitability and organizational value are two of your highest objectives. Did you know that simply improving your profits may not also maximize the value of your organization? Profit and loss reports allow you to see, evaluate and improve profitability. Do you also arm yourself with the tools you need to…

August 12 , 2015 | Posted by John Eberhart |

IRS assault on valuation discounts for FLPs looming

In recent months, one persistent rumor has circulated in the blogosphere dedicated to estate and gift tax issues. It’s that the IRS is about to eliminate or at least limit the application of discounts related to family limited partnerships and similar structures. Also, a recent article in The New York Times discusses the impending…

November 20 , 2014 | Posted by John Eberhart |

Discount for Lack of Marketability Bounces Back

One week after a New York trial court issued a contentious ruling that KO’d Discount for Lack of Marketability (DLOM) in Zelouf, a different court pronounced on the issue in another pot-stirring fair value proceeding that featured an “extremely successful company,” extremely contentious business partners, and extremely well-known valuators.

The successful company is…

Silver Lining to Tax Cloud Hovering over Small Business Values

Tax changes kicking in for 2013 have deflated small business values, but there are more transactions as buyers hope to get a good price, according to a new study from BizBuySell, the online business-for-sale marketplace.

Brokers surveyed say they are currently seeing an increase in the number of deals being completed, compared to the same…

Bob Schiller Discusses Personal Goodwill in Goering Center March Newsletter

Selling a business can be a stressful and life changing event. As a business owner, you have poured your blood, sweat and tears into your organization. When it comes time to sell, getting the greatest value for what you’ve built is critical. That means not only negotiating the best sale price, but also minimizing the…

Small Business Lending Starting to Thaw?

As a member of the Hamilton County Development Company SBA Loan Review Committee, I am beginning to see more activity in loan requests, both in new loans and refinances. This is good news for our local Cincinnati economy as the loan activity increases, so too will employment (eventually). The following article addresses this on a…