The Shareholder Agreement – Preparing for the Unexpected

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shareholder_agreement small_business“The best laid schemes o’ mice and men go oft awry,” wrote Robert Burns, and this certainly applies to even the best-run family businesses. A shareholder agreement helps prepare for the unexpected and lays out the ground rules of a small business in terms of governance, succession, the transfer of assets, liquidity and other issues. Think of it as a prenuptial agreement for a family business — a mechanism to reduce hard feelings and provide for an equitable distribution of assets.

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Why Is the Business Valuation Date so Important?

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When one considers how the value of an asset will be determined, it’s common to think about which method the appraiser will use or whether discounts may apply. A critical factor that might not immediately come to mind is the valuation or appraisal date. This article explains why the “as-of” date matters and how the purpose of the valuation guides this decision.

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Contracts with Contingent Consideration Provisions – Stallone Fights Studio’s Accounting Methods

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Contracts_contingent consideration provisions

Contracts that include contingent consideration provisions can lead to disputes regarding key definitions, as well as the amount and timing of payouts. Here are the details of a high-profile accounting dispute that started more than two decades ago between Sylvester Stallone’s production company and a major movie studio involving the 1993 movie Demolition Man.  Gryphon Valuation Consultants has specific experience in analyzing the value ramifications of contingent consideration provisions and conditions precedent.

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Exit Planning: Easing Our Clients’ Pain

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MoneyTree Exit PlanningStudies show that most business owners do not understand the tremendous benefits of proactive exit planning.  Financial and legal professionals are in a position to guide their clients through this life-changing process.  This is the final part of a three-part series focusing on the key elements of a successful exit plan.  The following was sourced from an article by Richard Jackim author of The $10 Trillion Opportunity: Designing Successful Exit Strategies for Middle Market Business Owners.

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Defining an “Exit Plan”

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Compass on Map - Defining an Exit PlanBusiness valuation and exit planning are a natural and powerful combination. Because of this, Gryphon is able to assist business owners and their professional advisors in drafting and implementing a successful exit strategy.  This is part-two of a three-part series focusing on looking beyond the numbers by digging deeper into the elements of a successful exit plan.  The following was sourced from an article by Richard Jackim author of The $10 Trillion Opportunity: Designing Successful Exit Strategies for Middle Market Business Owners, published by the Exit Planning Institute.

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Exit Planning: A Unique Opportunity

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Exit Planning - Man Throwing Paper in the Shape of a Dollar SignExit Planning has become quite a catchphrase.  Because business valuation and exit planning are such a natural and powerful combination, Gryphon is in a unique position to help business owners (our clients) do more than simply understand the value of their business today.  This is part one of a three-part series that focuses on looking beyond the numbers and diving deeper into the benefits that exit planning services can provide–both to our clients and our practices as financial and legal professionals.

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Buy/Sell Agreements – A Business Valuation Perspective

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Buy/Sell AgreementsThe circumstances surrounding Buy/Sell Agreements and their potential for unintended consequences is perhaps a larger issue now than ever before.  Baby boomers are turning 65 at the pace of 10,000 every day. Roughly 7 million small and mid-sized private companies are owned by baby boomers.  For many of these businesses, the timing of their ownership transfer will be unexpected.  What happens then?  Read More…

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