The balance sheet — a company’s assets and liabilities — is a logical starting point for valuing certain types of businesses. The cost approach focuses on this part of a company’s financial statements. Here’s an overview to help you understand this valuation technique. How Does It Work? When valuation professionals apply the cost approach, they  Continue Reading »

As a small business owner, you need to ensure that your compensation reflects what others would receive for performing similar duties in a similar setting. Not only is this important for tax purposes, but it’s needed to determine the value of your business. Total Compensation Package As the business owner, you’re likely to have related  Continue Reading »

Portland is known around Maine and New England — and even throughout the country — for its award-winning, creative and gourmet restaurants. Unfortunately, many of Portland’s restaurant businesses have struggled mightily during the COVID-19 pandemic. Some have even had to close. But a little relief may be on the way. In the recent Consolidated Appropriations  Continue Reading »

Kvinta v. Kvinta BV expertise matters, as a recent Florida divorce case shows in which the parties’ experts faced the challenge of valuing a company that once operated abroad but was sold a decade before the divorce trial. Only the owner spouse’s experienced valuation expert produced a defensible valuation, the trial court found. The state  Continue Reading »

Even as companies continue to grow in size in the Portland area, small businesses continue to be a major part of the economy in the region and throughout Maine. Anyone who runs a small business knows that it’s not easy, and sometimes it can be hard to make ends meet. If you happen to be  Continue Reading »

Under the Fair Labor Standards Act, salaried employees whose job duties are executive, administrative or professional (EAP) in nature and who earn at least $455 per week aren’t eligible for overtime — no matter how many hours they work. Because of this, small business owners in the Portland-area and across Maine often decide to pay  Continue Reading »

Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) are required to implement new revenue recognition rules in fiscal years that start after December 15, 2018. Are your personnel and accounting systems prepared for this fundamental shift in financial reporting? Based on feedback from public companies that implemented the changes in 2018, the effects  Continue Reading »

Thanks to a pilot program from the Department of Labor’s Wage and Hour Division (WHD), eligible employers may now be able to conduct a self-audit of certain wage practices. This program — called Payroll Audit Independent Determination (PAID) — was launched recently to enable employers to uncover payroll errors on their own. Employers who use the PAID  Continue Reading »

Most small business owners and attorneys know the basics of the business valuation process. They probably know that there are three approaches to value: the cost, market and income approaches. One thing attorneys and small business owners also understand is that the process of valuing a business is not simply a matter of plugging numbers  Continue Reading »

When a small business is having their company appraised, there are many different pieces that factor into the final figure. The discount for lack of marketability is a valuation adjustment that requires a particularly detailed process, and is often contested. An appraiser needs a complete understanding of this discount, and obviously can’t just pick a  Continue Reading »