Clean Up Financial Statements before Searching for a Buyer

By Jay Sickler The first step in selling any business is putting its financial house in order. After years of hard work, small business owners often want to cash out. While it’s inevitably an emotional decision, several easy steps can make the process go much smoother. First, put our house in order. A business isn’t…

Strategic Value – Cannabis Businesses

By: Eli Neal Business Valuation – The Marijuana Chronicles #7 To catch up on past blog posts, check out the links at the end of this article. So far, this blog series has focused on the premise of fair market value, which is defined as a hypothetical transaction between a willing and able buyer and…

The Tax Act has a Significant Impact on 2018 Business Valuations

By Jay Sickler I’m sure you’ve read a lot about the Tax Act’s impact on corporate and personal income taxes, but the 2017 Tax Cuts and Jobs Act is also throwing the business valuation profession into a bit of a frenzy. Since 1993, business valuation practitioners have been able to utilize a consistent corporate income…

Buy-Sell – Don’t Let Your Attorney Write the Valuation Provisions

By: Jay Sickler   You wouldn’t let your oral surgeon replace a torn ACL in your knee.  Likewise, you shouldn’t let your corporate attorney draft the language governing the company’s share value in your buy-sell agreement. In my opinion, most shareholder disputes regarding share valuation could have been avoided had the buy-sell valuation language been…

Income Approach (Forecast Inputs) – Marijuana Business

By: Eli Neal You can find blog posts #1 – 5 using this link. Business Valuation – The Marijuana Chronicles #6 As discussed in our previous blog post, the Discounted Cash Flow Method (“DCF Method”) relies on a management forecast for future periods. It’s important for valuation analysts to review & scrutinize management’s forecast to…

Income Approach (Discount Rates) – Marijuana Business

By: Eli Neal Catch up on blog posts #1 – 4 using these links: 1. An Introduction to the Oregon Marijuana Industry 2. How to Perform a Business Valuation of a Marijuana Business 3. Adjusted Net Asset Approach for Marijuana Businesses 4. Market Approach – Marijuana Business Business Valuation – The Marijuana Chronicles #5 This…

Market Approach – Marijuana Business

By: Eli Neal Business Valuation – The Marijuana Chronicles #4 If you have missed any of our previous blog posts on valuing marijuana businesses, you can find those blog posts here” An Introduction to the Oregon Marijuana Industry, How to Perform a Business Valuation of a Marijuana Business, and Adjusted Net Asset Approach – Marijuana…

Adjusted Net Asset Approach for Marijuana Businesses

By: Eli Neal Business Valuation – The Marijuana Chronicles #3 The Adjusted Net Asset Approach is a valuation methodology that estimates the fair market value of a company by subtracting the total liabilities from the total assets of the firm, after adjusting the balance sheet to fair market value. This form of value will generally…

How to Perform a Business Valuation of a Marijuana Business

By: Eli Neal Recent News Update: Before continuing our blog series on valuing marijuana companies, it’s worth noting that since our last blog post (February 23, 2017), White House spokesman Sean Spicer answered a question regarding the legal conflict at the State and Federal level regarding marijuana. Mr. Spicer said that the marijuana issue has…

An Introduction to the Oregon Marijuana Industry

By: Eli Neal Business Valuation – The Marijuana Chronicles #1 The legal marijuana industry is one of the fastest growing industries in the United States and the State of Oregon. In mid-January 2017, the Portland Business Journal held a Business of Cannabis Panel which featured: Sara Batterby, President & CEO, Hifi Farms; Chris Masse, Partner,…