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Returning Value Blog

ESOPs Offer Businesses Tax and Other Benefits

Posted by Nick Wheeler, CPA on Jul 28, 2017

With an employee stock ownership plan (ESOP), employee participants take part ownership of the business through a retirement savings arrangement. Meanwhile, the business and its existing owner(s) can benefit from some potential tax breaks, an extra-motivated workforce and potentially a smoother path for succession planning.

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Posted in Business Valuation

Tips to Optimize the Value of Your Privately Held Company

Posted by Michael D. Machen, CPA, CVA on May 24, 2017

Say you currently have a direct ownership interest in a privately held company. Or, perhaps your company granted you stock options, stock appreciation rights, or some other type of stock-based compensation. Whatever the circumstances may be, you may consider yourself fortunate; but do you really know what your business interest is worth?

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Posted in Business Valuation

Risk and the Rates of Return

Posted by Michael D. Machen, CPA, CVA on Feb 15, 2017

The required rate of return is just one of many components used in the calculations used in corporate finance and equity valuation. It goes beyond identifying the return of the investment, and factors in risk as one of the essential considerations in determining potential return. 

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Posted in Business Valuation

When Fifty Bucks is Worth More Than Fifty Bucks

Posted by Jessica L. Pagan, CPA on Aug 25, 2016

Understanding How Present Value Works in the Context of Business Valuation

Consider the following scenario: You and a friend are taking in a ballgame one lovely evening at the old ballpark. All is well until that friend of yours mentions that he forgot his wallet. Said friend, then sheepishly asks if he can borrow $50 to fund his consumption of requisite ballpark goodies—a hot dog, a frosty beer, peanuts (what would a ballgame be without peanuts?) and ice cream.

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Posted in Business Valuation

What's Your Small Business Worth?

Posted by Michael D. Machen, CPA, CVA on Aug 09, 2016

How to value business interests

It is often difficult to put a price tag on a company that is not publicly traded. For instance, the value of a family-owned business will typically exceed the total value of the hard assets such as equipment and inventory. In addition, assigning a value to intangible assets such as goodwill is a difficult proposition at best.

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Posted in Business Valuation

Understanding the Value of Capitalization Rates – and the Risks

Posted by Michael D. Machen, CPA, CVA on Jun 27, 2016

When it comes to evaluating the fair value of income-producing real estate properties, capitalization rates – or cap rates, as they’re widely known – are among the most useful tools available for buyers, sellers, property appraisers, bankers, and financial statement auditors. 

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Posted in Business Valuation

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