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Essential Guide to Business Valuation for Business Owners

Understanding the value of your business is crucial for making informed decisions whether you’re considering selling, seeking investment, or planning for future growth. Business valuation might sound complex, but it’s all about using the right approach and understanding the type of valuation report you need. This guide simplifies these concepts to help you navigate the process confidently.

Key Valuation Methods

Asset-Based Approach
- This method looks at what your business owns (its assets) and what it owes (its liabilities). It can be done in two ways:
  - Going Concern: Values your business as if it will continue operating.
  - Liquidation Basis: Values your business as if it were to close and sell off all assets.
Earnings Value Approach
- This method examines potential profitability through:
  - Capitalizing Past Earnings: Uses historical earnings adjusted for any unusual items to estimate future profits.
  - Discounted Future Earnings: Projects future earnings and reduces them to present value considering the risks associated with your business.
Market Value Approach
- This compares your business to similar businesses that have recently sold, helping gauge the market’s interest in ventures like yours through:
  - Comparable Company Analysis: Looks at financial ratios from similar companies.
  - Comparable Transactions Method: Reviews […]

By Linkenheimer LLP|2024-04-26T18:39:29+00:00April 26th, 2024|Advisor, business valuation|0 Comments

Advisory Spotlight: Benefits of Using ChatGPT

In today’s fast-changing digital world, new technologies like ChatGPT are changing how we do things, making tasks easier and faster. ChatGPT saves time and can be used in many different ways, helping us be more productive and creative in different areas.

Save time writing anything

ChatGPT and other Generative AI can help us save time through efficiencies:

Create content from a simple prompt, crafting the response via further “conversation”
Perform quality research and interpretation with the proper prompts
Prepare financial and other analysis via submission of data
Organize things via submission of data
Quickly generate shopping lists based on meal plans.
Create personalized workout routines tailored to specific goals.
Draft concise and professional cover letters for job applications.
Summarize long articles or reports into key points.
Plan travel itineraries with local attractions and dining options.
Develop custom study guides for academic subjects.
Automate responses for common customer service inquiries.
Craft engaging social media posts for various platforms.
Organize daily tasks and set reminders for important deadlines.
Translate text between multiple languages instantly.
Develop travel itineraries based on your interests and budget

Just ask for help with the right prompt, keeping in mind some cautions such […]

By Linkenheimer LLP|2024-02-13T19:02:25+00:00February 13th, 2024|Advisor, Tech|0 Comments

Fraud Letter for Businesses

The addage “desperate times call for desperate measures” applies to many businesses, large and small, during these difficult economic times. These measures can be in the form of reduced hours, layoffs, and business closures. There is another aspect of ‘desperate measures’ that is worthy of discussion: fraud by trusted employees.

We would like to offer some simple, yet effective ways to establish some accounting or internal controls.

Related duties should be assigned to different people. […]

By Linkenheimer LLP|2020-09-03T20:06:00+00:00September 5th, 2012|Advisor, CPA, fraud, Linkenheimer, Santa Rosa, trusted employees|0 Comments

If You Accept Credit Card or PayPal Payments…

By Linkenheimer LLP|2020-09-03T20:06:01+00:00September 4th, 2012|1099, Advisor, CPA, credit cards, Linkenheimer, paypal, Santa Rosa, tax form|0 Comments

John Jones Recognized by Press Democrat for Global Eye Care Projects

John Jones’ good deeds have not gone unnoticed. On Sunday, July 8th, the Press Democrat released an article detailing his many trips to Nicaragua. Over the past 17 years, John has led and organized over 10 trips to Third World countries delivering basic health services. During those 17 years, he has helped over 15,000 people see more clearly.

John is normally accompanied by members of his local church or by fellow Rotarians. His outreach trips have included destinations such as Nicaragua, Mexico, Haiti, Guatemala, Samoa and Vietnam.

His most recent project, involves raising $100,000 for the first ever surgery center in the Rio San Juan region of Nicaragua. This remote region is home to 26,000 people who have virtually no medical care available locally. As the leader of his Rotary clubs efforts, they have already raised $46,000.

Even though he isn’t an eye doctor, the CPA has had a profound affect on the region, providing life changing health services, including eye exams and distributing eye glasses.

To read the Press Democrat article, click here.

By Linkenheimer LLP|2020-09-03T20:06:03+00:00July 17th, 2012|Advisor, charity, CPA, eye glasses, John Jones, Linkenheimer, Nicaragua, Santa Rosa|1 Comment