How Cash Flow Impacts the Sale of a Business
Appraising a business can be approached from a number of different directions, including book value of assets, capitalized income and discounted future earnings. One practical step to take, especially when selling a small business, is to look at cash flow in relationship to debt coverage. Unless the purchase is in cash, the buyer will most…
Grant Reform a Day-After-Christmas Gift
Dec. 26, 2014, will be marked by more than gift returns this year. The new Office of Management and Budget “Super Circular” goes into effect on that date, with the goal of strengthening federal grant making. Published last year, the new OMB circular rolled eight existing publications into one to streamline compliance with federal regulations…
Selling Your Business: When is Value Highest?
There are many reasons to sell your business. Because it’s going downhill isn’t the best one – not if you want to recoup the value of your hard work. Businesses have a life cycle, much like people and other living things. The length of each stage is dependent on many variables – the owners, the…
Solid Financial Structure Crucial to Sound Management
A nonprofit’s financial management system involves much more than tracking money in and out. Your ability to deliver services effectively rests upon a solid financial structure. Even the best organizations have gaps in their financial management procedures. Adding to the challenge is the artificially low cap funders often place on overhead. They’re seeking to stem…
Be Proactive to Protect Intellectual Property
There is an old adage that says the value of your business walks out the door every night. While human capital is a critical part of your business, your intellectual property may be just as important, if not more so. Safeguarding it from walking out is crucial to ensuring your company’s continued success. Intellectual property…
Are You Capturing the Knowledge of Retiring Workers?
Knowledge transfer has long been a challenge for businesses. With the large number of Baby Boomers eligible to retire in the next few years, that challenge has been magnified. The key to addressing this concern is to start early. For some companies, that ship has sailed, making it necessary to play catch up. Here are…
What Professional Team Has Highest Value?
Everybody knows professional sports are big business. But how big? More and more professional teams are worth in the billions, according to Forbes magazine, whose famous lists include the most valuable professional football, baseball and basketball teams. What is the most valuable team in US sports? That would be the Dallas Cowboys – ranked No….
Are You Meeting Your Mission? Ask Constituents
Your mission is the reason your organization exists. Staff, resources and community support are dedicated to addressing an important social issue. The key question is: Are you meeting your mission effectively? You likely have measurements in place to track and evaluate your work. The results are required by most funders and serve as the basis…
Urban Ministries Cable Company Wins Valuation Case
A complex valuation case concerning the estate of the owner of a cable uplink company for the urban ministries network The Word has been decided in favor of the estate. The US Tax Court in August accepted the original $9.3 million valuation entered by the estate of Franklin Z. Adell rather than the original IRS…
Fraud Hits Small Businesses Particularly Hard
Small businesses have a tough time when it comes to fraud. They are victimized more often than larger organizations. Their losses are disproportionally larger than those of bigger companies. They can’t afford as many anti-fraud measures. A major fraud can virtually wipe them out. Nearly one-third of all employment fraud cases took place in an…