Estimating business income and value can be a tricky process. Many legal practitioners can get confused by key financial items and concepts related to income. And some owners make it difficult because they use the business as their personal piggy bank — or incorrectly assign major business expenses.
Forensic accounting and business valuation expert Cheryl Kessler makes it easy for you to understand the answer to the main question — does the business have value? To highlight key valuation concepts Cheryl uses three methods to analyze two companies — a manufacturing company and a service business. The valuation methods are the Income, Excess Earnings & Market approaches and she also highlights key points about owner & shareholder loans and distributions in regards to business income. Additional topics covered: discretionary & non-cash expenses, debt free net cash flow, income for support, normalized earnings, determining reasonable compensation, intangible assets that can be transferred to a buyer and what potential buyers actually consider before buying.
For over 20 years, Cheryl J. Kessler, ASA, CFA, MBA, has helped closely-held companies in many industries determine the value of their equity. An expert in business valuations & forensic accounting, she specializes in valuation opinions for marital dissolutions, gift and estate tax purposes, partner buyouts, mergers & acquisitions, ESOPs and stock option plans (409a).