Business Valuations for SBA Lending
|
|
- Wesley Lyons
- 8 years ago
- Views:
Transcription
1 Business Valuations for SBA Lending 2 nd Annual Lenders Conference Minnesota District SBA Office September 4, 2014 Chuck Miller, CBA cmiller@affirmedvaluation.com
2 Appraiser s Professional Bio Chuck Miller, CBA is the founder of Affirmed Valuation Services, a Minnesota based business valuation firm specializing in SBA related valuations. He is a Certified Business Appraiser (CBA) through the Institute of Business Appraisers (IBA). He has provided valuation advisory services for closely held companies since 2005 in addition to possessing several more years of financial and valuation experience. Chuck has conducted hundreds of business valuations for companies across a wide range of industries with annual revenues ranging from startup to over $700 million including main street businesses to publicly traded companies.
3 Overview SBA Requirements When is a Valuation Required? Other Business Valuation Requirements What if the Appraised Value is Lower than the Purchase Price? 100% Control or Minority Interest? Recent SOP Changes Major Screen Out Reasons The Valuation Process The Engagement Business Valuation Basics Fair Market Value versus Investment Value Three Approaches to Value: Income, Market, Asset/Cost Using the Income Approach Income Normalization Adjustments Using the Market Approach Valuation Rules of Thumb
4 When is a business valuation required? Per the SOP (pages ): If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment is greater than $250,000; or If there is a close relationship between the buyer and seller (for example, transactions between family members or business partners), the lender must obtain an independent business valuation from a qualified source. Then: The lender must obtain an independent business valuation from a qualified source.
5 When is a business valuation required? EXAMPLE: 1 2 Total Deal Purchase Price $1,000,000 $1,000,000 Buyer/Borrower Equity $250,000 $250,000 Financing/Loan Amount $750,000 $750,000 Real Estate & Equipment Value $450,000 $550,000 Remaining Business Financed $300,000 $200,000 BV Required? Yes No
6 What is a Qualified Source? Per the SOP: A qualified source is an individual who regularly receives compensation for business valuations and is accredited by one of the following recognized organizations: Accredited Senior Appraiser (ASA) accredited through the American Society of Appraisers; Certified Business Appraiser (CBA) accredited through the Institute of Business Appraisers; Accredited in Business Valuation (ABV) accredited through the American Institute of Certified Public Accountants; and Certified Valuation Analyst (CVA) or Accredited Valuation Analyst (AVA) accredited through the National Association of Certified Valuation Analysts.
7 Other SBA Requirements for Bus. Val. Requested by and prepared for the lender. Lender may not use a business valuation prepared for the applicant or seller. Valuation must identify whether stock or asset purchase and specific enough to know what is included in the sale. Must include the appraiser s: Opinion of value Qualifications of appraiser Certification with signature
8 Other SBA Requirements for Bus. Val. Lender may use a going concern appraisal if financing a special use property (e.g. hotel, carwash, gas station, golf course). Note: the appraiser must still be certified in business valuation and the values must be allocated between land, building, equipment, intangibles. Lender must verify business valuation financial data (have copies and compare accuracy against IRS transcripts). If going through the LGPC, business valuation must be submitted with package.
9 What if the business valuation comes in less than purchase price? SOP states: Any amount in excess of the business valuation may not be financed with the SBA guaranteed loan. In other words, the appraised value of the business must be greater than the lender's loan amount.
10 What if the valuation comes in less than purchase price? EXAMPLE: Purchased Asset Loan Amount Buyer/ Borrower Equity Total Purchase Business $375,000 $125,000 $500,000 Purchase Comm. Real Estate $400,000 $100,000 $500,000 $775,000 $225,000 $1,000,000 If the business valuation is less than the purchase price, say $380,000, can the lender still process the loan?
11 Recent Changes in 2014 SOP for Business Valuations Eliminated the requirement for business valuations for the refinance of change of ownership transactions. A CPA is no longer qualified to provide a business valuation (unless the CPA has a qualifying business valuation designation).
12 100% or Partial/Minority Interest Appraised? Perform Business Valuation for a 100% Interest SBA loan proceeds can be used in a small business acquisition if: The buyer is purchasing a 100% ownership interest; or One or more existing owners purchase of a seller s interest would result in the buyer(s) owning a 100% interest.
13 Major Screen Out Reasons Related to Business Valuation Failure to include a valid business valuation: Per the SOP: If the application will be submitted to the LGPC, the business valuation must be submitted as part of the loan application. If under delegated authority, business valuation can be obtained after approval. SBA Express: Amount being financed may be less than $250,000, but if there is a close relationship between buyer/seller, a third party business valuation is required. Failing to include allocations of sale in a Purchase and Sale Agreement (intangible asset amounts are important). Note: allocations in business valuations may be different from the allocations stated in the PSA or other lender documents.
14 Typical Business Valuation Process Engagement (discuss, agree, retain, sign); Information gathering (sometimes most tedious part); Initial interviews, discussions with parties involved; Conduct industry/economic research; Analyze relevant financial data & descriptive information; Identify relevant valuation methodologies; Normalize income statements & balance sheets; Estimate ongoing earning power; Search for market comparables; Conduct valuation analysis (asset, income & market approach); Analyze any non-operating or excess assets; Apply applicable discounts/premiums; Reconciliation & conclusion of value; Write report (summary or comprehensive); Finalize invoice, engagement & delivery method.
15 Engagement The engagement hiring a business appraiser Accredited business appraiser (per SBA SOP) Get firm fee quote and turnaround time Engagement letter Understand type of report provided and methods used. Does appraiser use multiple valuation methods? If unsure of appraiser s work, get a sample report Will appraiser personally visit site or will it be a desk appraisal?
16 Business Valuation Report Type Report Type Examples Price Detailed Report - Business Valuation Opinion IRS matters, Litigation, ESOPs, etc. $$$ Summary Report - Business Valuation Opinion SBA lending, holding companies, consulting $$ Calculation Report - Calculation of Value (limited scope) Consulting, specific client requested situations $
17 Standard of Value Fair Market Value (most common): Willing buyer & willing seller No compulsion to buy or sell Both knowledgeable of the facts Acting at arm s length Investment Value (value can be higher): Value of an asset/investment to a specific buyer Based on individual investment objectives Includes potential synergies Neither specified in the SBA SOP
18 Standard of Value Fair Market Value More conservative Values the current business as it is expected to be operated Example: A print/mailing shop would be valued based on its existing revenues, operations, expenses, employees, etc. Owner discretionary expenses are still add-backs when valuing a control interest. Investment Value Can take into account specific improvements/synergies only available to the buyer. Example: Buyer owns several print/mail shops, saves on bulk purchases, delivery and marketing, has existing special equipment, and has less expensive management and admin.
19 Business Valuation Methods Small Businesses Income Approach Single Period Income Capitalization Multiple Period Discounted Cash Flow Market Approach Private Company Transactions Rule of Thumb Asset/Cost Approach Economic Adjusted Balance Sheet
20 Income Approach to Value Estimates value of the business by applying appropriate cost of capital rates to normalized projected earnings. This method considers the company s ability to cover debt service and provide a reasonable equity return to the owner.
21 Income Approach - Steps Normalize earnings/cash flow Project earnings/cash flow Estimate an appropriate cost of capital Single period capitalization rate Multi period discount rate Apply cap rate or discount rate to cash flow Make any required adjustments: nonoperating assets, excess working capital, debt, etc.
22 Income Approach Example Income Capitalization Method Pre-tax WACC Discount Rate 23.0% Less Long Term Growth -3.0% WACC Capitalization Rate 20.0% Projected Cash Flow (normalized NOI/EBIT) $200,000 Divide by capitalization rate 20.0% Estimated Business Value - Before Debt $1,000,000
23 Normalize Earnings/Cash Flow Owner compensation to economic value How much would non-owner need to be paid? Use industry publications (e.g. RMA) and public occupation/wage data Related benefits (e.g. life ins.) and payroll taxes Rent normalize to projected rent or market rent if related entity Discretionary expenses Auto Travel/meals/entertainment Cell phone plans Family members on payroll Non-recurring items Legal and consulting fees Unrelated income and/or expense Depreciation/Amortization
24 Example: Normalized & Projected Earnings-Cash Flow Historical Operating Income Plus/(Minus) Adjustments Excess officer compensation Depreciation Capital Reserves/Economic Deprec. (5.0) (5.0) (5.0) Non-recurring legal 30.0 Total Adjustments Adjusted Earnings Weight Each Year 15.0% 35.0% 50.0% Weighted Earnings Normalized Earnings-Cash Flow Long Term Growth 3% Projected Earnings (Normalized) 200.0
25 Cost of Capital by Asset Class/Size IRR/Discount Rates Long Term Asset Class Total Returns Source Total Return Inflation SBBI 3.1% Treasury Bills SBBI 3.6% Intermediate Term Government Bonds SBBI 5.5% Long Term Government Bonds SBBI 6.1% Long Term Corporate Bonds SBBI 6.4% Large Company Stocks - Publicy Traded SBBI 11.8% Micro Cap Stocks - Publicy Traded SBBI 18.0% Small Private Companies (pre-tax WACC) BVR 19.7% SBBI - Stocks Bonds Bills and Inflation Valuation Yearbook BVR - Business Valuation Resources, Mar 2014 Business Valuation Update IPCPM
26 Cost of Capital Primary Components Cost of equity Cost of debt Long term growth Weighted Average Cost of Capital (WACC) Pre-Tax Discount Rate Mix Debt 6.0% x 0.30 = 1.8% Equity 30.0% x 0.70 = 21.0% Pre-Tax Discount Rate 22.8% Less: Long-term Growth Rate -3.0% Invested Capital Capitalization Rate 19.8%
27 Cap Rate Factors to Consider (this also applies to market approach multiples) Expected growth in business and/or industry Debt capacity and/or ability to obtain financing History of the business (established/new) Reputation Dependence on Key Employees/Relationships Customer concentration Size Historical profitability and cash flow Location Etc.
28 Income Approach Example Income Capitalization Method Pre-tax WACC Discount Rate 23.0% Less Long Term Growth -3.0% WACC Capitalization Rate 20.0% Projected Cash Flow (normalized NOI/EBIT) $200,000 Divide by capitalization rate 20.0% Estimated Business Value - Before Debt $1,000,000
29 Income Approach Example Discounted Cash Flow Method Pre-tax WACC Discount Rate 23.0% Cash Flow Factor Present Value Year 1 $200, $162,602 Year 2 $206, $136,162 Year 3 $212, $114,022 Year 4 $218, $95,482 Year 5 $225, $79,956 Terminal Year $1,159, $411,776 Estimated Business Value - Before Debt $1,000,000
30 Market Approach Private Company Transaction Method Compares subject business to sale transactions of other comparable privately held businesses (similar industry, size, etc.). Similar to real estate Sales Comparison Method Market transaction databases: Pratt s Stats IBA Market Transaction Database BizComps
31 Market Approach Private Company Transaction Method Analyze transaction multiples Price to Sales Price to EBIT/EBITDA (use the most consistent earnings multiple) Price to Discretionary Earnings (smaller businesses) Find any relevant trends in the multiples Adjust/select multiples and apply to subject company
32 Market Approach Example Private Company Transaction Method Indicated Subject's Adjusted: Multiple Value Revenue $500, $400,000 EBITDA $100, $450,000 Plus Owner's Comp $70,000 Discretionary Earnings $170, $425,000
33 Market Approach Private Company Transaction Method Pratt s Stats Data
34 Market Approach Private Company Transaction Method Pratt s Stats Data
35 MVIC Price to Revenue Transaction Example: Sandwich Shops Price to Sales Trend by Profitability % 10.0% 20.0% 30.0% EBITDA % to Revenue
36 MVIC Price to Revenue Transaction Example: Sandwich Shops Price to Sales Trend by Size Annual Revenue
37 MVIC Price to EBITDA Transaction Example: Sandwich Shops Price to EBITDA Trend by % Profitability % 10.0% 20.0% 30.0% EBITDA % to Revenue
38 Market Approach Rules of Thumb Method Same use of business pricing multiples as the Private Transaction Method Uses published or commonly known Rules of Thumb instead of market evidence/transactions Popular with business brokers to obtain a quick check on value Used as a reasonable test: a business valuation will not rely heavily on the method
39 Asset/Cost Approach Adjusted Book Value Method Relies on adjusting the balance sheet to estimated market value. Most appropriate for very asset intensive businesses (e.g. real estate holding company) Not as useful for businesses with substantial intangible assets Represents a floor value for most businesses as a going concern.
40 What Report Should Include Report opinion letter/executive summary Engagement basics (client, purpose, value date, scope) Interest appraised (%, invested capital, stock, etc.) Definition and type of value used Company background Economic and Industry background Financial analysis (make sure historical financials square with your data) Valuation methods explained Value method reconciliation and opinion Assumptions, hypothetical, and/or limiting conditions Signed appraiser Certification and Qualifications
41 Questions? Chuck Miller, CBA
Understanding Business Valuations
Understanding Business Valuations SBA America East Conference August 1, 2012 Neal Patel, CBA Reliant Business Valuation Abridged Slides: Email neal@reliantvalue.com for full presentation Appraiser s Professional
More informationCHANGES HIGHLIGHTED IN SOP 50 10 5(H) (Effective 5/1/2015)
CHANGES HIGHLIGHTED IN SOP 50 10 5(H) (Effective 5/1/2015) [Copied directly from SOP major language changes highlighted. Changes in general order of importance. Material shown in quotes directly following
More informationWhat is the fair market
3 Construction Company Valuation Primer Fred Shelton, Jr., CPA, MBA, CVA EXECUTIVE SUMMARY This article explores the methods and techniques used in construction company valuation. Using an illustrative
More informationChapter 4: Liquor Store Business Valuation
Chapter 4: Liquor Store Business Valuation In this section, we will utilize three approaches to valuing a liquor store. These approaches are the: (1) cost (asset based), (2) market, and (3) income approach.
More informationUnderstanding and Implementing the Income Approach
Understanding and Implementing the Income Approach Charles A. Wilhoite, Managing Director, Willamette Management Associates Daniel M. Lynn, Principal, Deloitte Financial Advisory Services, LLP September
More informationBusiness Valuation and Exit Planning. Aaron J. Pryor, CFA, ASA
Business Valuation and Exit Planning Aaron J. Pryor, CFA, ASA Phases of a Business Valuation Assignment Define the valuation assignment What exactly is the subject of the valuation What is the purpose
More informationCOMMUNICATING THE VALUATION REPORT
COMMUNICATING THE VALUATION REPORT Dave Diehl, CFA Prairie Capital Advisors, Inc. ddiehl@prairiecap.com Chieoke Moore, CPA Prairie Capital Advisors, Inc. cmoore@prairiecap.com OUTLINE OF TODAY S PRESENTATION
More informationValuing Real Property Going Concerns
Valuing Real Property Going Concerns By Paul R. Hyde, EA, MCBA, ASA, ASA, MAI The Problem Most everyone agrees that valuing real property falls under the purview of real estate appraisers and requires
More informationValuation of Physician Practices
Valuation of Physician Practices Presentation Summary! Overview! As mergers and acquisitions of physician practices continue to be prevalent, an understanding of valuation and relevant compliance considerations
More informationBusiness Valuation Report
Certified Business Appraisals, LLC Business Valuation Report Prepared for: John Doe Client Business, Inc. 1 Market Way Your Town, CA January 1, 2016 1 Market Street Suite 100 Anytown, CA 95401 Web: www.yourdomain.com
More informationTOP TEN QUESTIONS OF VALUE
TOP TEN QUESTIONS OF VALUE Throughout my career as a business valuation professional (business appraiser), I have been asked a number of questions repeatedly from the end users of the valuation report
More informationNACVA. National Association of Certified Valuators and Analysts
NACVA National Association of Certified Valuators and Analysts The Core Body of Knowledge for Business Valuations All rights reserved. No part of this work covered by the copyrights herein may be reproduced
More informationInternational Glossary of Business Valuation Terms*
40 Statement on Standards for Valuation Services No. 1 APPENDIX B International Glossary of Business Valuation Terms* To enhance and sustain the quality of business valuations for the benefit of the profession
More informationSMALL BUSINESS DEVELOPMENT CENTER RM. 032
SMALL BUSINESS DEVELOPMENT CENTER RM. 032 THE BUSINESS VALUATION PROCESS: BUYING/SELLING A BUSINESS (c) Revised January, 2013 Board of Regents, University of Wisconsin System Julie Britz, Writer; Mark
More informationUnderstanding Working Capital in a Successful Business Acquisition or Where is the Working Capital?
Understanding Working Capital in a Successful Business Acquisition or Where is the Working Capital? Working capital definition- 1. The amount of capital needed to carry on a business. 2. Accounting- current
More informationPractice Bulletin No. 2
Practice Bulletin No. 2 INTERNATIONAL GLOSSARY OF BUSINESS VALUATION TERMS To enhance and sustain the quality of business valuations for the benefit of the profession and its clientele, the below identified
More informationWhat's Your Business Worth? What you see isn't usually what you get - or want!
What's Your Business Worth? What you see isn't usually what you get - or want! "How much is my business worth?" and "How do I know for sure?" and "Why should I care? After all, I have no intention of selling
More informationDEPOSITION QUESTIONS FOR STEVEN GARCIA
DEPOSITION QUESTIONS FOR STEVEN GARCIA When you see a box, it means that I am telling you either the direction that I want to go in or what I expect his answer to be. BACKGROUND AND QUALIFICATIONS (BIOGRAPHICAL
More informationBusiness Valuation. Presented by: CPA Assurance http://www.cpaassurance.com
Business Valuation Presented by: CPA Assurance http://www.cpaassurance.com Presentation Summary Overview of business valuation approaches Standards of value Valuation adjustments Current developments Using
More informationSBA Loans: The Missing Manual
PrudentLenders has received many questions from borrowers and lenders regarding SBA loan structure, eligibility, guarantees, affiliation, and collateral. These questions encompass a wide spectrum of issues
More informationBusiness Valuation What You Need to Know. Frankel & Reichman LLP www.calcpaexpert.com
Business Valuation What You Need to Know Frankel & Reichman LLP www.calcpaexpert.com Presentation Summary Overview of business valuation approaches Standards of value Valuation adjustments Using a qualified
More informationBusiness Valuation of Sample Industries, Inc. As of June 30, 2008
Business Valuation of Sample Industries, Inc. As of June 30, 2008 Prepared for: Timothy Jones, CEO ABC Actuarial, Inc. Prepared by: John Smith, CPA ACME Valuation Services, LLP 500 North Michigan Ave.
More informationDETERMINING AGENCY VALUE PART 5
DETERMINING AGENCY VALUE PART 5 VALUATION METHODOLOGY (continued) By: Chuck Coyne, ASA This month we continue our discussion of how to determine an agency s value. Last month we discussed many of the typical
More information377 SW CENTURY DRIVE Suite B-3 Bend, OR 97702 USA. Fax: 775-703-0390
377 SW CENTURY DRIVE Suite B-3 Bend, OR 97702 USA Telephone: Fax: 775-703-0390 When a divorcing spouse owns a business, the benefit of presenting an expert valuation almost always exceeds the cost. Brett
More informationHow to Understand the Value of a Business
Business Valuation Specified Assets of Sample Company Inc. as of December 31, 2010 TABLE OF CONTENTS Conclusion of Value...1 Valuation Summary...2 Analysis of the Company...3 DESCRIPTION AND HISTORY OF
More informationEmerald Financial Commercial Funding COMMERCIAL LOAN APPLICATION
Emerald Financial Commercial Funding COMMERCIAL LOAN APPLICATION This checklist if provided to assist in gathering the necessary information needed for the initial evaluation of your loan request. Complete
More information2012 Lender Roundtables
2012 Lender Roundtables Resources SBA Loan Programs SOP 50 10 5 (E) (current version) Lender Newsletters ( The Lender s Advantage ) www.sba.gov/for-lenders E-mail 7aQuestions @sba.gov Wichita District
More informationValued Representation. VR is celebrating 32 years of successful business sales through valued representation Valued Representation defines VR.
Valued Representation VR is celebrating 32 years of successful business sales through valued representation Valued Representation defines VR. VR is: VALUED REPRESENTATION Welcome to Volume #6 Course #
More informationWONG GLOBEWIDE PROPERTY INVESTMENTS CORPORATION WGPIC. Commercial Loan Application. Need Help! Please call 213-618-6611 Ask for JC
WONG GLOBEWIDE PROPERTY INVESTMENTS CORPORATION WGPIC Commercial Loan Application Need Help! Please call 213-618-6611 Ask for JC Or Efax 866-612-9898 Or Email: Info@WGPIC.com (please answer all questionnaires
More informationCommercial Lending Glossary
Commercial Lending Glossary Acre: Unit of land measure equal to 43,560 square feet. Amortization (To Amortize): The act of paying off a debt through scheduled periodic payments. Example: A 20 year amortization
More informationSMALL BUSINESS DEVELOPMENT CENTER RM. 032
SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey
More informationAN INTRODUCTION TO REAL ESTATE INVESTMENT ANALYSIS: A TOOL KIT REFERENCE FOR PRIVATE INVESTORS
AN INTRODUCTION TO REAL ESTATE INVESTMENT ANALYSIS: A TOOL KIT REFERENCE FOR PRIVATE INVESTORS Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca Rules of thumb and financial analysis
More informationMike Bollinger - Profile. Independent Pharmacy - Today. Discussion Topics. Independent Pharmacy - Today 6/19/2012. Mike Bollinger June 22, 2012
Mike Bollinger - Profile Mike Bollinger June 22, 2012 Presenting to the members of: Business Management / Marketing, BA - University of New Orleans Manager, Independent Pharmacy - Majoria Drugs Sales Consultant,
More informationWhat is an ESOP? ESOPs are defined contribution pension plans that invest primarily in the stock of the plan sponsor
Employee Stock Ownership Plans May 2013 http://aicpa.org/ebpaqc ebpaqc@aicpa.org Topix Primer Series The AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) has developed this primer to provide Center
More informationHow should banks account for their investment in other real estate owned (OREO) property?
TOPIC 5: OTHER ASSETS 5A. REAL ESTATE Question 1: (December 2008) How should banks account for their investment in other real estate owned (OREO) property? Detailed accounting guidance for OREO is provided
More informationProfessional Qualifications of John T. Iacopi, CPA/ABV, CBA, CVA
Professional Qualifications of John T. Iacopi, CPA/ABV, CBA, CVA (Covering Business Appraisal, Consulting, Litigation Services Only) Prepared as of May 1, 2015 Educational Background, License and Certifications
More informationValuing Dental Practices
BVR s Online Symposium on Healthcare Valuation, Part 6 Ron L. Seigneur, MBA, ASA, CPA/ABV/CFF, CVA Seigneur Gustafson James Andersen, ASA, ABV, CFF, MBA Burr Pilger Mayer Dr. Bernard Slota, DDS Cosmetic
More informationViewpoint on Value. Built-in capital gains tax can be a real drag. Knowing value is half the battle
Viewpoint on Value November/December 2009 Built-in capital gains tax can be a real drag Knowing value is half the battle One price doesn t fit all Making sense of valuation discounts SBA tightens business
More informationFinancial. Management FOR A SMALL BUSINESS
Financial Management FOR A SMALL BUSINESS 1 Agenda Welcome, Pre-Test, Agenda, and Learning Objectives Benefits of Financial Management Budgeting Bookkeeping Financial Statements Business Financing Key
More informationMoss Adams Introduction to ESOPs
Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as
More informationOverview of Financial Solutions
Overview of Financial Solutions The Etra Advisory Group provides solutions to businesses for growth, expansion, cash flow, refinance and acquisition. We cover the world of business financing that banks
More informationSBA Lending - Introduction
SBA Lending - Introduction Facilitated by: Jim Kahler - Texans Credit Union Dale Donnell SBA Consulting, LLC Perry Espie US Small Business Administration American Recovery and Reinvestment Act 90% guaranty
More informationBUSINESS LOAN APPLICATION
BUSINESS LOAN APPLICATION Thank you for your decision in obtaining a commercial loan from our business service division. Please complete the following information as accurately as possible so we may better
More informationPRINCIPLES OF BUSINESS. Essential Curriculum Course Overview. Total Hours: 125 BUSINESS IN THE GLOBAL ECONOMIC ENVIRONMENT
PRINCIPLES OF BUSINESS Essential Curriculum Course Overview Total Hours: 125 UNIT 1: BUSINESS IN THE GLOBAL ECONOMIC ENVIRONMENT Hours: 19 01 - Economic Decisions and Systems (4 hours) The student will
More informationSBA 504 Expanded Refinancing Eligibility
SBA 504 Expanded Refinancing Eligibility When is a commercial mortgage considered eligible for refinancing under the new rules? 1. The loan must have funded at least 2 years ago 2. 85% of the loan proceeds
More informationAmerican Society of Appraisers. ASA Business Valuation Standards
American Society of Appraisers Business Valuation Standards This release of the approved Business Valuation Standards of the American Society of Appraisers contains all standards approved through February,
More informationVALUATION CONSIDERATIONS. When Buying or Selling a Business
VALUATION CONSIDERATIONS When Buying or Selling a Business VALUATION CONSIDERATIONS WHEN BUYING OR SELLING A BUSINESS // 2 Introduction There is no such thing as an absolute value in this world. You can
More informationPURCHASING REAL ESTATE IN A SELF DIRECTED IRA OR QUALIFIED PENSION PLAN. By Maurice M. Glazer, CEO GLAZER FINANCIAL NETWORK
PURCHASING REAL ESTATE IN A SELF DIRECTED IRA OR QUALIFIED PENSION PLAN By Maurice M. Glazer, CEO GLAZER FINANCIAL NETWORK In today s market or lack of market, most baby boomers have most of their retirement
More informationBusiness Valuation A presentation for Manitoba Learning Match 2014. Daniel Bernard, CA, CBV
Business Valuation A presentation for Manitoba Learning Match 2014 February 11, 2014 Daniel Bernard, CA, CBV J.P. Barnabé, CA Overview When to get a Valuation Valuation Reports Basic Principles of Valuation
More informationFIVE REASONS YOU NEED TO KNOW WHAT YOUR BUSINESS IS WORTH WHITE PAPER
FIVE REASONS YOU NEED TO KNOW WHAT YOUR BUSINESS IS WORTH WHITE PAPER Few business owners relish spending money on something they don t need. And for most owners, hiring an expert to estimate the value
More informationIpx!up!hfu!uif Dsfeju!zpv!Eftfswf
Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,
More informationDebt Refinancing Under the 7(a) Program. Lynn G. Ozer Executive Vice President Government Guaranteed Lending
Debt Refinancing Under the 7(a) Program Lynn G. Ozer Executive Vice President Government Guaranteed Lending Debt Refinancing SBA-guaranteed loan proceeds may not be used to refinance debt originally used
More informationGet Pre-qualified. Borrower Information
Get Pre-qualified Getting qualified for a mortgage can be challenging these days. That s why Lafferty Communities has made special arrangements with preferred lenders to help our buyers through the process.
More information3/22/2011. Financing an ESOP Transaction. Table of Contents. I. The Leveraged ESOP Transaction. John L. Miscione Managing Director
Presented by John L. Miscione Managing Director Table of Contents I. The Leveraged ESOP Transaction II. ESOP Tax Benefits III. Debt Capacity IV. Financing Markets and Terms V. The Lender s Perspective
More informationHow to Evaluate the New Japan Federal Loan Programs
VERMONT ECONOMIC DEVELOPMENT AUTHORITY MORTGAGE INSURANCE PROGRAM SUBCHAPTER 2 MORTGAGE INSURANCE PROGRAM SUBCHAPTER 2 7/31/15 SUBCHAPTER 2 GUIDELINES Under this program, the Authority aids eligible and
More informationValuTrax User s Manual
ValuTrax User s Manual 032311 2010 Biz Broker Toolz, All Rights Reserved Used By Permission ValuTrax is a Trademark of Business Brokerage Press, Inc. Table of Contents Table of Contents 2 Introduction
More informationBUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE
BUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca A COMMON GOAL AND COMMON UNDERSTANDINGS Agreed: Our common
More informationMatching Cash Flows and Discount Rates in Discounted Cash Flow Appraisals
Matching Cash Flows and Discount Rates in Discounted Cash Flow Appraisals Introduction by C. Donald Wiggins, DBA, ASA, CVA Business Valuation Review March 1999 There are many conceptual and practical problems
More informationProvide an estimate of the Fair Market Value of a 100% Equity Interest in an Arizona business known as ABC Insurance Agency, Inc.
July 20, 20XX ABC Insurance Agency 123 Valley Road Phoenix, AZ 85XXX Subject: Provide an estimate of the Fair Market Value of a 100% Equity Interest in an Arizona business known as ABC Insurance Agency,
More informationGrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help
GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL Webinar Series Date: September 4, 2012 Presented by: Hetal Engineer, SunTrust VP
More informationBuyer s Guide BASIC INFORMATION:
Buyer s Guide Buying an apartment in NYC can be overwhelming. Our Buyer s Guide provides useful information that can help you familiarize yourself with the process. BASIC INFORMATION: Financing: Find out
More informationFinancial. Management FOR A SMALL BUSINESS
Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small
More informationBUSINESS VALUATION INSIGHTS
BUSINESS VALUATION INSIGHTS AKRON BAR ASSOCIATION SEPTEMBER 18, 2015 Discussion Topics Business Valuation Overview Evaluating Business Valuation Experts Valuation Approaches Valuation Discounts for Lack
More informationECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF FLINT
ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF FLINT Dear Applicant: Thank you for your interest in the Economic Development Corporation of the City of Flint loan program. Enclosed are the Commercial
More informationBusiness Loan Application
Business Loan Application For LDC Staff Use Application received on: by Loan Program (s): 7/2015 BUSINESS INFORMATION Business Name: (Proposed or Existing) Loan Amount: $ Business Address: City County
More informationMortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
More informationHow To Value An Asset
Business Valuation: How to Make the Most of Your Business Pooja Gardemal, CPA/ABV Vice President Business Valuation & Economic Analysis 1 About is a global consulting firm with offices in the U.S. and
More informationSBA Lending. MCUL Lending Conference. What does a guaranty mean to you?
SBA Lending MCUL Lending Conference What does a guaranty mean to you? What will be covered Benefits of SBA SBA Loan Programs 7(a) Lending Parameters Determining Eligibility Credit Considerations Use of
More informationChapter 4: Buying an Existing Business
Chapter 4: Buying an Existing Business 1 Learning Objectives To understand that buying an existing business has several important advantages over starting one, including less risk, less time and effort,
More informationValuing the Business
Valuing the Business 1. Introduction After deciding to buy or sell a business, the subject of "how much" becomes important. Determining the value of a business is one of the most difficult aspects of any
More informationBUSINESS VALUATION REPORT SUBJECT BUSINESS: COMMERCIAL PRINTER SAMPLE REPORT WITH IDENTIFYING DATA DELETED
BUSINESS VALUATION REPORT SUBJECT BUSINESS: COMMERCIAL PRINTER SAMPLE REPORT WITH IDENTIFYING DATA DELETED Prepared By DONALD SONNEMAN, ASA ABLEPLUS VALUATIONS 9715 Lorraine Way, #203 Santee, CA., 92071
More informationEmployee Stock Ownership Plans for Banks and Bank Holding Companies The Tax-Exempt Stock Market
Employee Stock Ownership Plans for Banks and Bank Holding Companies The Tax-Exempt Stock Market Presenters: W. William Gust, J.D., LLM President of Corporate Capital Resources, LLC Michael A. Coffey Managing
More informationSmall Business Administration Loan Application
BUSINESS INFORMATION Small Business Administration Loan Application Business Name Structure (Corporation, Partnership, Sole P., LLC) Address Type of Business City, State, Zip No. of Employees: Before After
More informationS Corp. vs. C Corp. Valuation (Revised 12-20-02)
Web: www.businessvaluexpress.com Mike Adhikari Email: info@businessvaluexpress.com Adhikari International, Inc. Phone: 847-438-1657 175 Olde Half Day Rd., Suite 100 Fax: 847-438-1835 Lincolnshire IL 60069
More informationSources of Funds: Equity and Debt
Sources of Funds: Equity and Debt The Secrets to Successful Financing 1. Choosing the right sources of capital is a decision that will influence a company for a lifetime. 2. The money is out there; the
More informationAn Instrument of Corporate Finance
An Instrument of Corporate Finance Year-End Seminar Doing Business in Central Pennsylvania and Beyond November 12, 2014 Edward C. Renenger ecr@stevenslee.com A STEVENS & LEE/GRIFFIN COMPANY Introduction
More informationSmithfield Motors: A case in lending, strategy, and value
ABSTRACT Smithfield Motors: A case in lending, strategy, and value Steve A. Nenninger Sam Houston State University The primary subject matter of this case is financial statement analysis. Issues examined
More informationCommercial Loan Application. Business Structure LLC Corporation Partnership Sole Prop.
38541 Rhonswood, Northville, MI 48167 (248) 477-2503 Fax (248) 477-5963 www.nafgllc.com Commercial Loan Application Business Profile Legal Business Name/Borrower Tax Payer ID E-Mail Address D/B/A (if applicable)
More informationSmall Business Valuations
Small Business Valuations Done Right Small Business Valuations We specialize in valuing small, owner-operated businesses with annual sales of less than $5 million. In fact, over 40% of our valua ons involve
More informationAn Introduction to Business Valuation
An Introduction to Business Valuation TM I ntroduction to Business Valuation If you own stock in a public corporation, you can readily determine its value by going to The Wall Street Journal and finding
More informationHow To Get A Loan For A Startup Business
Helping Your Prospective Businesses Get the Funding They Need Connie Edwards Reminders Connie Edwards Business Consultant Small Business Development Center Savannah, Georgia cedwards@georgiasbdc.org 912-651-3200
More informationSBA Information Notice
SBA Information Notice TO: All SBA Employees CONTROL NO.: 5000-1290 SUBJECT: Issuance of SOP 50 10 5(F) Lender and Development Company Loan Programs EFFECTIVE: 09/25/13 The Office of Capital Access is
More informationWORKING CAPITAL BASICS FINANCING GOVERNMENT CONTRACTS. North Carolina Military Business Centers. 10 th Annual North Carolina Defense Trade Show
WORKING CAPITAL BASICS FINANCING GOVERNMENT CONTRACTS North Carolina Military Business Centers 10 th Annual North Carolina Defense Trade Show August 9, 2011 NON-BANK FINANCING OPTIONS Purchase Order Finance
More informationNATIONAL INTERACTIVE STUDY GROUP UNIT 8 QUESTIONS
NATIONAL INTERACTIVE STUDY GROUP UNIT 8 QUESTIONS National Interactive Study Group 2 SESSION 8 JOHN MATHIS Notes for Tonight 1. To MUTE your phone line use *6 2. To UNMUTE your phone line use #6 3. Chat
More informationCOMMERCIAL LOAN APPLICATION
COMMERCIAL LOAN APPLICATION Thank you for considering Enterprise National Bank N.J. for your commercial loan needs. This application along with other information you supply will provide us with the information
More informationHOME BUYING MADE EASY. Live the dream of owning your own home.
HOME BUYING MADE EASY Live the dream of owning your own home. sm Getting started For most of us, buying our first home is a dream come true. It s also a lengthy process where potential and sometimes very
More informationStatements on Management Accounting
Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT TITLE Business Valuation CREDITS IMA would like to acknowledge the work of Nicholas J. Mastracchio, Jr., Ph.D, CPA on whose work this
More informationSBA 504 Non Bank Business Model. Presented by Sok Cordell
SBA 504 Non Bank Business Model Presented by Sok Cordell CH Capital Partners LLC (SBA Non Bank Lending Program) The information contained in this presentation has been obtained from sources believed to
More informationDevelop Your Intuition about Value Multiples By Serena Morones, CPA, ABV, ASA, CFE
By Serena Morones, CPA, ABV, ASA, CFE Introduction Do you have a reasonable sense about what multiple of EBITDA is appropriate to value your client s business? Or do you toss around standard rules of thumb
More informationMost economic transactions involve two unrelated entities, although
139-210.ch04rev.qxd 12/2/03 2:57 PM Page 139 CHAPTER4 INTERCOMPANY TRANSACTIONS LEARNING OBJECTIVES After reading this chapter, you should be able to: Understand the different types of intercompany transactions
More informationSean R. Saari, CPA/ABV, CVA, MBA
Sean R. Saari, CPA/ABV, CVA, MBA DISCLAIMER All rights reserved. No part of this work covered by the copyrights herein may be reproduced or copied in any form or by any means graphically, electronically,
More informationBusiness Loan Fms Application Checklist
This checklist will help you through the process of gathering the infmation needed to facilitate your loan request. Complete infmation will be necessary to process your loan application. Business Loan
More informationGeneral Lending Criteria
1-888-324-3578 www.gregoryfunding.com info@gregoryfunding.com General Lending Criteria While we consider every loan on a case-by-case basis, following are general answers to some commonly asked questions.
More informationAMERICAN SOCIETY OF APPRAISERS. Business Valuation Principles of Valuation Course Outlines BV201 BV202 BV203 BV204
AMERICAN SOCIETY OF APPRAISERS Business Valuation Principles of Valuation Course Outlines BV201 BV202 BV203 BV204 INTRODUCTION Questions on the ASA s eight hour Business Valuation Challenge Exam are based
More informationCFS. Syllabus. Certified Finance Specialist. International benchmark in Finance profession
CFS Certified Finance Specialist Syllabus International benchmark in Finance profession Certified Finance Specialist Summary: This award will provide candidates the opportunity to gain advanced level knowledge
More informationSmall Business Valuations
Small Business Valuations Done Right Small Business Valuations We specialize in valuing small, owner-operated businesses with annual sales of less than $5 million. In fact, about 40% of our valua!ons involve
More informationEMPLOYEE STOCK OWNERSHIP PLANS (ESOPs): A BUSINESS SUCCESSION PLANNING TOOL WORTH CONSIDERING
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPs): A BUSINESS SUCCESSION PLANNING TOOL WORTH CONSIDERING By: Chuck Coyne, ASA Empire Valuation Consultants, LLC Tabitha Croscut, Esq. Steiker, Greenapple & Crosut,
More informationSBA Procedural Notice
SBA Procedural Notice TO: All Employees CONTROL NO.: 5000-1056 SUBJECT: Small/Rural Lender Advantage Initiative EFFECTIVE: 5/12/2008 Introduction In January of 2008, the U.S. Small Business Administration
More informationFinancial Modeling & Valuation Stuart A. Neiberg, MAcc, CPA, CFA Director HealthCare Appraisers, Inc.
Financial Modeling & Valuation Stuart A. Neiberg, MAcc, CPA, CFA Director HealthCare Appraisers, Inc. Presentation Outline Why is Financial Modeling and Valuation Important? Industry Overview and Trends
More informationTOWN OF HAMDEN, CONNECTICUT Economic & Community Development Department 2750 Dixwell Avenue Hamden, Connecticut 06518
TOWN OF HAMDEN, CONNECTICUT Economic & Community Development Department 2750 Dixwell Avenue Hamden, Connecticut 06518 Dale Kroop, Director TO ALL INTERESTED LOAN APPLICANTS NOTICE OF AVAILABLE FUNDS SMALL
More information