Here’s a list of things NOT to do to increase the value of your company
New data released today from Valuation Advisors confirms that bad management significantly increases the time it takes to sell a business–and significantly decreases the value of the business. Valuation Advisors captures their data by looking at how much stock is discounted prior to an initial public offering (IPO). Value will be decreased more than [...]
Are you going to offer stock options to key employees? You’ll need a valuation under 409A regs
Neil Beaton, National Valuation Partner for Grant Thornton and a great friend to BV.com, reminds our readers that stock options require annual business valuations. He was quoted on this subject last week by Business Week: “In 2004 legislation was passed that resulted in IRS code section 409A, which governs deferred compensation. Most stock [...]
Be careful about valuation clauses in your buy-sell; a court may decide it’s all you have!
Earlier this year, when reviewing the shareholder’s request for a statutory buy-out under Texas law, the bankruptcy court concluded that it had three options to value his 8% interest: 1) the shareholder’s expert valuation; 2) book value; or 3) the buy-sell provision in the company’s shareholders’ agreement.
The shareholder’s expert used a capitalization of income approach [...]
New “chain of ownership” reporting documents controlling interests
Thanks to the Minnesota Business Valuation Group for alerting us to new ownership reporting requirements: business tax filers with multiple owners must now answer new tax questions due to changes in reporting on Internal Revenue Service (IRS) form 1065, the U.S. Return of Partnership Income. Passed in 2008, the requirement for partnership returns became effective [...]
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