By Shawn Hyde, International Society of Business Appraisers (ISBA) –
If you have ever seen a business appraisal report, you by no means have seen them all. There are almost as many different styles and types of reports as there are business appraisers. Fortunately, each report should have a few things in common that a reader can lock onto and use to decipher what the rest of the report means. I want to share a few of these and some tips I have come up with over the years for reading valuation reports.
Things to look for –
1. Not all business appraisers follow, or are required to follow, the Uniform Standards of Professional Appraisal Practice (USPAP), but most of them will still put a page somewhere in the report where they state their concluded value. Usually, they will also state what exactly it was that was appraised. Do not assume that the appraiser appraised what you thought was appraised. Many times, I have been asked to appraise a business, and when I asked for more information on what exactly the client was looking for, I had to educate the client on the possibilities.
I can appraise an ownership interest in the entity that owns the business assets, or I can appraise only the assets that would normally transfer in a sale.
In the first option, I can appraise a 100% ownership interest in the equity or in the invested capital. Equity means just what it means elsewhere — assets minus liabilities equals equity. Invested capital means I am providing the value regardless of how the operations were financed. Each option will come up with a different number and both will be correct. (more…)
By Andriana Moskovska –
Keeping your business afloat in a highly competitive market is not exactly a walk in the park. Approximately 20% of new ventures don’t even make it past their first year, so it’s important to do all that you can to rise above the competition.
With that being said, finishing up another year without your business closing down is already a major milestone. But don’t start celebrating too soon. Now is the time to reflect on the past few months, and set goals for the upcoming year. Preparing for the year to come will ensure steady growth for your business.
Poor business planning and market research are two of the main culprits of business failure. Simply put, there’s no room for incompetence in the world of business.
It’s important to avoid procrastination. Take care of smaller tasks as they come, so you can focus on the bigger things ahead.
Here are a few things to add to your end-of-year checklist so you can start the new year with a clean slate: (more…)
By ComplyRight –
On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule that will make 1.3 million workers newly eligible for overtime pay.
Under the new guidelines, the minimum salary threshold increases to $684/week ($35,568 annually), effective January 1, 2020. With very few exceptions, employers must pay time-and-a-half to workers making less than this amount for any hours over 40 per week.
The white-collar duties tests for executive, administrative and professional employees remain the same. This means employees will only be exempt from overtime if they earn more than $35,568 annually and pass one of the existing DOL job duties tests.
Identify Affected Employees
Your first step to prepare for the new rule is to pinpoint employees who may be impacted by the change. (Consider reviewing all employees making less than $40,000 a year since the salary threshold could increase in the future.) If employees making less than $35,568 are already non-exempt or “hourly,” no change is needed. However, if you have employees under the threshold who are exempt or “salaried,” you’ll need to take action. (more…)
By Michael Patten –
We’ve all watched entrepreneurs go onto Shark Tank and pitch their product to the Sharks. Some participants are so impressive in the way they deliver a clever pitch that instantly grabs everyone’s attention, while other participants fail miserably and make you cringe inside.
While my son and I have watched many episodes together, one business in particular stuck out to me. Two cousins from Maine pitched the idea of a food truck selling lobster. After seeing an update on the business this year, I decided to learn a bit more and picked up their book, Cousins Maine Lobster: How One Food Truck Became a Multi-million-Dollar Business. The book provided a detailed account of how they started their business, how they landed on Shark Tank, and how their deal with Barbara turned their food truck into a multi-million dollar business.
The book was a fun read and provided some great insights into starting a business and all of the work that is involved. However, one of my favorite chapters was titled “Oh, Right, Money Matters,” because it highlights the value and critical importance of understanding the key metrics of any business. (more…)