– Or –
“What do you think my company is worth?” As a firm that provides both business appraisal and M&A advisory services that is the twenty-four thousand dollar question that we get asked all the time. And why not? It’s pretty important in any context.
As a firm that often works closely with entrepreneurs in the transition of their business, be it through a long range exit planning exercise or within the context of a sell-side M&A transaction, we are acutely aware of how complex and nuanced the sale process has become. Owner-operators, management teams, Boards, and more generally, the principal stakeholders need to wrestle with a host of issues. The laundry list includes establishing valuation expectations, defining strategic and cultural fit, securing livelihoods for their valued employees, determining what kind of process they want (auction or otherwise), formulating a buyer universe, pre-transaction due diligence, post LOI due diligence, reps and warranties within the P&S, and so on and so forth.
Your grandparents may have purchased a permanent life policy, put it in a drawer and forgotten about it—and that might have been okay—but today’s life insurance policies are complex financial instruments and need to be monitored like any other asset in your portfolio. A permanent life insurance policy can be one of your most important financial assets and you want it to be there for your beneficiaries when it’s needed the most, or perhaps for your own retirement, if you purchased a cash accumulation contract. The best surprise is no surprise and a life insurance policy surprise is almost never good. A policy audit can tell you if your policy is in trouble or headed for it, and what corrective action may be possible.
A business and its owner(s) maintain an interesting relationship. The interplay between the individual and the organization often represents a tremendous source of pride and accomplishment as well as a wellspring of stress and worry. Setting aside these feelings for the moment, a business more tangibly provides the means by which owners create value for themselves (let’s not forget other shareholders and employees). Generally speaking, value creation comes in the form of providing an earnings stream over the course of a business’s life that allows the bread to be put on the proverbial table. It helps to pay for the kids’ education, retirement as well as your home and lifestyle. The other value creation avenue comes upon an exit, where a new owner identifies future opportunity that can be captured from the foundation you built and is willing to pay for it.
Wealth Management Services are offered through Baldwin & Clarke Advisory Services, LLC (BCAS). BCAS is a Registered Investment Adviser with the United States Securities and Exchange Commission (SEC). BCAS’ Form CRS and other disclosure documents can be found here. The information in this website has not been approved or verified by the SEC, or by any state securities authority. Additional information about BCAS is available on the SEC’s website at: www.adviserinfo.sec.gov, using CRD #105666.
Registration does not imply a certain level of skill or training.
