Buyers and sellers often have a different perspective relating to the value of a business.  Whilst both hope to achieve their desired results, reconciling these value differences is often one of the most challenging aspects of effecting a successful transaction.  The sellers of the company seek to maximize the value of the transaction for their … Continue reading Fair Market Value vs. Strategic Value

The process of selling a privately-held business may be quite difficult and confusing for the owners, many of whom have never been involved in an acquisition.  Their lack of familiarity with the process may create a feeling of unease, particularly once they have found a potential buyer for their business.  At this point, many business … Continue reading Getting to Know the Basics of Letters of Intent

Once the privately-held business owner has signed the letter of intent (LOI) from the potential acquirer of the company, the transaction process progresses to the due diligence phase during which the buyer accesses more detailed information regarding the target than was available during negotiations.  The due diligence process is intended to confirm the information previously … Continue reading Getting to Know the Basics of Due Diligence

Most owners of privately-held businesses believe that they know what their company is worth.  As they have worked to build the business, often from the ground up, they feel that their intuitive value conclusions accurately reflect the fair market value of the firm.  In many cases, these business owners are biased in their views towards … Continue reading The 7 Benefits of Annual Valuations

Introduction             As discussed in another article by Highland Global, entitled “Selling Your Company,” business owners are confronted with a number of decisions each day that impact their business, none of which may be more important than the decision to pursue a merger or acquisition of the company.  This is often an issue that many … Continue reading Preparing Your Company for a Merger or Acquisition

Having performed business valuations for a variety of purposes over the years, I have been asked a number of questions from attorneys for litigation, marital dissolution, mergers & acquisitions, etc. Clearly, the attorney asks these questions so as to ensure that the best interests of the client are served. Often times, the methodology, theory, and … Continue reading Top 10 Business Valuation Questions that Attorneys Ask Business Appraisers

Leverage is a powerful tool for a company’s management to potentially maximize shareholder return and boost financial performance.  When cash is not readily available to invest in positive net present value projects, a firm may use leverage to achieve its objective of investing in positive net present value projects which should serve to increase long-term … Continue reading Financial Leverage & WACC: How Small, Overleveraged Businesses Can Inflate the Value of the Firm with an Abnormally Low Weighted Average Cost of Capital

With November 7th quickly approaching, the future of the Capital Projects Sales Tax Act (RIDE II) remains uncertain.  Considering the negative aspects and positive ramifications of the initiative, it is clear that not only is RIDE II in the best interests of the people of Horry County, it is also a financially responsible and economically … Continue reading Passing the Capital Projects Sales Tax Act (RIDE II) on Election Day is in the Best Interests of Horry County