The many reasons to invest in a business valuation

first_imgShare Facebook Twitter Google + LinkedIn Pinterest Brian E. RavencraftA business valuation is an investment most business owners should consider making. A business valuation is a procedure that is performed in order to evaluate your operation and then determine its estimated economic value. This service is carried out by a certified public accountant that holds the credential that positions them to gage the value of businesses based on a number of factors.Many professionals believe that selling your business is really the only reason to have a business valuation performed. However, here are several scenarios that call for a thorough review of the worth of your business. Our firm has been performing this service for clients for many years, for many different reasons. Yes, if you are preparing to sell your business, a valuation will provide you with the numbers you need to a secure a deal that benefits both you and the new owner. But that is just one reason.You will need to know the fair-market value of your operation in the event that you consider merging with another entity. Or, you will need to be armed with the right numbers if you plan to add a new owner to the business so you can set the buy-in amount for him/her. The same goes for owners and other shareholders that will be exiting the business.What about your own exit strategy? Knowing the value of your business sets you up to create a better retirement plan, whether you plan to sell, pass it along or close up shop all together. Many times I work with business owners who must know the value of their operation due to a family-related situation. For example, business owners going through divorce proceedings often need to know the value of their business so they are properly informed during legal proceedings. Or, a family emergency comes into play and the current value of the business is as vital piece of information that is needed as the parties involved work towards a solution. Sometimes needing to be aware of the true value of your business has nothing to do with selling or leaving and everything to do with expansion. How you know just how far you can grow without knowing where you currently stand in regards to finances and value?When looking for someone to assist your privately held enterprise with independent valuation requirements, you want to partner with a CPA with varied experiences and intense training in valuation theory as well as application, litigation support, accounting, tax, auditing, finance, insurance, economics and investments. There is no substitution for experience, so you will want to secure a firm that routinely performs business valuations. As always, contact me with any questions you may have.Brian E. Ravencraft, CPA, CGMA is a Principal with Holbrook & Manter, CPAs. Brian has been with Holbrook & Manter since 1995, primarily focusing on the areas of Tax Consulting and Management Advisory Services within several firm service areas, focusing on agri-business and closely held businesses and their owners. Holbrook & Manter is a professional services firm founded in 1919 and we are unique in that we offer the resources of a large firm without compromising the focused and responsive personal attention that each client deserves. You can reach Brian through www.HolbrookManter.com or at [email protected]last_img read more

Patent Protection? Google Bids Nearly $1 Billion for Nortel’s Patents

first_img8 Best WordPress Hosting Solutions on the Market Our current patent system is a mess, many industry observers contend, and the number of patent lawsuits currently underway regarding technology IP borders on the ridiculous. To say that everyone is suing everyone doesn’t feel like much of an exaggeration. Microsoft, Oracle, Apple, RIM, Motorola, Google, and more – all suing or being sued.For its part, Google has long tried to take the moral higher ground, if you will, criticizing patent trolls (those who buy patents in order to file suits and profit without actually developing the technology themselves). Google has argued that the current patent system stifles innovation. Indeed, the company has found itself on the receiving end of plenty of lawsuits, most notably in recent months, by Oracle, which is accusing Google of infringing on the company’s Java patents in the development of Android.That history makes Google’s announcement today a little surprising, perhaps. Google says it is spending almost a billion dollars in a bid to acquire patent rights from Nortel, which filed for bankruptcy in 2009.Nortel and Google have entered into a “stalking horse” asset sale agreement that will include all of the former’s remaining patents and patent applications for $900 million. This will involve approximately 6,000 patents, spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patent portfolios. According to a statement from Nortel, this “extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.”Google has called for reform of the patent process, but in announcing the agreement today, Google seems to recognize that while reform is the long-term solution, that stance will do little good in the short-term. “As things stand today,” writes Kent Walker, Google Senior VP and General Counsel, “one of a company’s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services.”Describing itself as a “relatively young company” without a sizable patent portfolio, Walker says that Google hopes that the acquisition of Nortel’s patent will “create a disincentive for others to sue Google.” Hopefully, Walker adds that it will help those involved in projects like Android and Chrome to continue to innovate. Of course, that argument runs counter to what Google has long maintained about the patent process. But if you can’t beat ’em, join ’em. Why Tech Companies Need Simpler Terms of Servic… Related Posts Tags:#Google#NYT#web center_img audrey watters Top Reasons to Go With Managed WordPress Hosting A Web Developer’s New Best Friend is the AI Wai…last_img read more