The Story Behind the Numbers
Value Added Ideas For Business Owners and Their Advisors
Investing in Your Business Can Temporarily Decrease Its Value—Here’s Why That’s Not Always a Bad Thing
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For business owners, understanding how business valuation works is crucial for long-term success. When you’re investing in your company, you’re typically aiming for growth, expansion, or increased efficiency—but did you know that these investments can actually decrease your business’s value in the short term? This phenomenon might seem counterintuitive to many business owners, but itRead More… |
Beyond the Exit Strategy: Managing for Value Throughout a Business’s Lifecycle
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Business valuation has long been seen as a tool reserved for exit planning. It’s often associated with the final stages of a business’s lifecycle, used to determine a company’s value for sale or handover. But viewing valuation solely through the lens of an endgame strategy is a missed opportunity. Business valuation offers powerful insights thatRead More… |
Business Valuation: The Magic Number
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How did 2024 go? The one number that tells the whole story While these metrics are indicators of past performance, they don’t provide a full picture of the business’s overall health. For example: Even profitability can mask underlying issues. Is the owner neglecting needed reinvestments in technology, equipment, or facilities? Is high employee turnover tiedRead More… |
Celebrating 50 Years of Business Valuation
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A good time was had by all at Nakoma Golf Club on November 14th to celebrate CapVal’s 50th anniversary. We had a great turnout – a big thanks to the nearly 100 people who came to celebrate and to the many others who sent such kind messages. Our President, Jane Tereba, shared the milestones inRead More… |
Business Exit Strategy: Which Type of Buyer is Right for You?
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Different potential buyers of a business will arrive at very different values. Why? Because buyers have different interests, motivations, knowledge, and plans for what they might do if they become the owner. Generally, informed buyers calculate the value of a business with a focus on two key levers: 1. Future Expected Cash Flows: The income,Read More… |
Prevent Lost Opportunity: Know the Value of Your Business
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It’s often said that a business is worth whatever someone is willing to pay for it, so why should a business owner bother with a formal valuation, especially if they have no immediate plans to sell? After 50 years of valuing closely held businesses and assisting owners in preparing for ownership transitions, we’ve found thatRead More… |
Sharing Ownership With Key Employees—Will It Get You Where You Want to Be?
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Business owners often consider sharing ownership with key employees for one of two primary reasons: 1. Ownership succession planning. 2. Increasing the likelihood that key employees will stay with the company. Initially, sharing ownership might seem like a wise, easy, and low-cost way to engage and retain key employees. If done carefully and selectively, thisRead More… |
Buy/Sell Agreements: Proactively Defining How to Navigate Inevitable Ownership Transitions
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As the saying goes…. “Don’t get into business with ANYONE without first defining how you’ll get out of ownership.” Starting a business or deciding to share ownership can seem straightforward initially. However, a critical aspect often overlooked is defining how each owner will eventually exit that ownership. After 50 years of working with business owners,Read More… |
How to Build Value Today for a Future Exit
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What if sales growth isn’t the whole story? Business owners begin by selling something—a product, a service, or adding value to existing products or services. As the business takes root and grows, it transforms from a mere idea and typically employment for the owner, into a significant investment, likely becoming the owner’s largest asset. InRead More… |
We Started Valuing Businesses Before Valuing Businesses Was Cool
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We’re Celebrating 50 Years! |
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