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 [...]
Key elements in prenuptual agreements to protect your company
A quick analysis today on Inc.com summarizes the following key elements in any pre-marital agreement to keep an existing business as separate property (with the note that states treat separate property differently):
The agreement must be in writing (No oral prenups)
It must be executed voluntarily and without coercion (having your fiancé sign a prenup the day [...]
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 [...]
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