Defenders of Business Value

In my 30-year journey through the world of deal-making, I’ve had the pleasure of conducting thousands of business valuations and working alongside some of the most talented appraisers across the United States. In this podcast episode, we’re diving into a common confusion in the business valuation process—what you expect versus what you actually get. Most of my work revolves around preparing businesses for sale, and my goal is to ensure that everyone who comes to me for valuation walks away with the insights they need, specifically geared toward selling. Nothing more, nothing less. One area where things get a bit murky is the terminology, especially when it comes to “fair market value.” It’s a term often thrown around to mean the same as “investment value” or “market value,” but the definition of fair market value can differ when we're talking about selling. In today’s episode, I’m breaking down the differences between fair market value and market value to highlight the important distinctions that could significantly affect your sale. Here’s the bottom line: Knowing your appraiser and understanding the standard of value they’re using is critical. If you’re looking for an appraiser for reasons other than selling, I’ve got a go-to list I’d be happy to share. ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders

In this episode, we join Ed Mysogland as he explores the crucial aspects of Confidential Information Memorandums (CIMs) in the context of M&A transactions. Ed illuminates their essential role in the smooth execution of business sales. The episode offers an in-depth look at critical components of CIMs, including a detailed business overview, industry analysis, and the nuances of business valuation. Drawing on his extensive experience, Ed provides valuable insights into the importance of understanding a company's customer base, marketing approaches, and internal team dynamics, which are vital in maximizing business value. Furthermore, Ed discusses the importance of a comprehensive due diligence process, highlighting aspects such as technological advancements, strategies for growth, and effective methods for conducting transparent facility tours. Tune in to gain expert advice and learn about the indispensable tools that can assist business owners in achieving a streamlined and profitable sale. ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

In this episode, Ed Mysogland welcomed Adam Hoeksema, a seasoned professional in the field of financial modeling and business projections. Adam shared his journey from an accounting background to becoming an entrepreneurial force in the financial industry. He emphasized the pivot of his business, Projection Hub, from a subscription model to offering specialized Excel spreadsheet templates and custom financial modeling services.  Adam candidly discussed the challenges and realizations that shaped his business, including understanding market needs and customer preferences. The conversation also ventured into the intricacies of financial projections, with Adam offering insights into effective forecasting and the nuances of creating realistic financial models for businesses. A significant portion of the discussion was dedicated to exploring current trends in business sales, particularly in the context of the anticipated "silver tsunami" of retiring business owners. Adam expressed concerns about the disconnect between the expected number of businesses for sale and the actual market capacity to absorb these sales. He speculated on the potential rise in creative financing solutions, like seller notes, to bridge this gap. The episode offered a mix of practical advice, industry insights, and forward-looking thoughts, particularly valuable for entrepreneurs, business buyers, and financial professionals. Adam's expertise in financial modeling and his perspective on the evolving business sales landscape provided a thought-provoking and informative session. Listeners can find more about Adam Hoeksema and his work at Projection Hub, a platform offering tailored financial modeling tools and services. About Adam Hoeksema: Adam is the Co-Founder and CEO of ProjectionHub.  ProjectionHub helps founders create financial projections for potential investors and lenders.  Prior to ProjectionHub, Adam served as the Executive Director of an SBA lender for over a decade.  During his time at Bankable, they closed over 1,500 SBA loans for small businesses. Connect with Adam; Email: adam@projectionhub.com Website: https://www.projectionhub.com/ Youtube: https://www.youtube.com/channel/UC9vn9s2duubZyqh0nAw6IEA LinkedIn: https://www.linkedin.com/in/adamhoeksema/ ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

I wanted to introduce you to the BizSaleByOwner platform. BizSaleByOwner’s sole purpose is to serve small business buyers and sellers who deserve and are demanding more...More transparency, flexibility, choice, and more control. BizSaleByOwner.com is a self-directed business sale platform that provides business owner support, buyer efficiency, and ad hoc exit advisory services. Our innovative exit ecosystem is tailor-made to safeguard confidentiality while offering a comprehensive toolkit that keeps business owners and stakeholders operating efficiently. Today, my cofounder, Gary Stehle, and I walk trough the platform's features and what it took to get it from idea to an actual platform. See all of the features of the platform: Click Here Website:  https://bizsalebyowner.com/ Gary Stehle's Email: gary@bizsalebyowner.com LinkedIn: https://linkedin.com/garystehle ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

Discover the secrets of trust and asset protection for business owners in this episode. Join expert Bruce Mack as he delves into tax planning and strategies business owners. Learn how forming a trust can shield your business from lawsuits and eliminate capital gains income. Uncover the intricacies of trusts for tax mitigation, asset protection, and financial aid, all while gaining insights from seasoned professionals.  Reach Bruce via: Email: bruce@platinumtrustgroup.com Website: https://platinumtrustgroup.com/ ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

Ed Mysogland is discussing books and records with special guest ​Matt Remuzzi​ from ​CapForge​ this week. Next to the value gap, nothing can kill a deal quicker than bad books. Whether you're a business owner, investor, or simply intrigued by the dynamics of financial dealings, this episode is a must-listen. Discover the art of optimizing small business books for sale, unravel the intricacies of financial due diligence, and gain valuable insights into preparing businesses for successful transactions. Join the conversation as Matt shares expert advice on improving financials, navigating M&A deals, and maximizing the value of your business. Don't miss out on essential tips for running a business with an eye on future sales, including the nuances of transferring ownership and strategic growth planning. Tune in now for an enlightening discussion that promises to demystify the complexities of business transactions and set you on the path to a successful sale. Listen and gain valuable insights to elevate your business game! ​Listen Here​   Reach Matt at: Email: matt@capforge.com Website: https://capforge.com/ Twitter: https://twitter.com/capforge?lang=en Instagram: https://www.instagram.com/capforge_bookkeeping/ Youtube: https://www.youtube.com/channel/UCjl5E64LjsD1PHlEfVa1e6w LinkedIn: https://www.linkedin.com/company/58977659/admin/feed/posts/ ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

This week on the podcast, Ed had the opportunity to visit with "SBA Ray" otherwise known as ​Ray Drew​ of ​Fundex Solutions​! In this podcast episode, we delve into the recent changes implemented by the U.S. Small Business Administration (SBA) in its lending programs. These changes include two Procedural Notices and new Standard Operating Procedures (SOP) that have a significant impact on the 7(a) and 504 lending programs, with a particular focus on financing change of ownership opportunities. Here are the key highlights of the SBA’s new SOP and additional guidance: Equity Injection Changes: Equity injection refers to new cash or assets added to a project not on the borrower’s balance sheet before. For acquisitions resulting in a complete change of ownership, a minimum equity injection of 10% of the total project costs is now required. Seller debt on standby or interest-only can be considered for equity injection. Employee Stock Ownership Plans (ESOPs): Lenders with delegated authority can now submit ESOP transactions. Loans to ESOPs for purchasing a controlling interest (at least 51%) do not require equity injection. Partial Changes of Ownership: SBA loans can now fund the purchase of a portion of an owner’s interest. Selling owners can remain involved in the business after the partial change of ownership. Rolled equity from the target company into the new company remains ineligible. Additional Guaranteed Dollars: Individuals can receive an extra $3.75 million in guaranteed dollars, equivalent to a $5 million 7(a) loan, for acquiring a business not in the same 3-digit NAICS subsector as any currently owned business with existing SBA debt. Buyer Rebates: Buyer rebates, tied to business performance, are allowed, providing flexibility in deal structures. Helps mitigate risks like concentration, employee retention, and more. Elimination of Personal Resource Test: SBA lenders no longer need to evaluate the personal resources of loan applicants. Stronger, more liquid borrowers can now pursue SBA financing, offering greater flexibility for multiple transactions. Reduced Documentation Requirements: The SBA has reduced the amount of documentation lenders must collect to verify equity. These changes bring significant opportunities and flexibility to small businesses seeking SBA financing, making it essential for entrepreneurs and lenders to stay informed about the latest updates. Tune in to learn more about how these changes could impact your business and financing options. ​Listen Here​ Connect with Ray: Email: rdrew@fundexsolutions.com Website: https://fundexsolutions.com/ Twitter: https://twitter.com/SBA_Ray?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor Youtube: https://m.youtube.com/channel/UC7_6-lZHN4cXa0sF6Tu8AGQ LinkedIn: https://www.linkedin.com/in/raydrew4589   ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

Ed Mysogland dissects Q3 data, revealing steady business valuations despite declining deal volume. Sellers navigate pandemic uncertainty, with minimal changes in revenue and cash flow multiples. Ed highlights the importance of earnings and introduces the Value Builder tool. The market pulse survey indicates a balanced landscape, and Ed emphasizes the significance of exit planning. Tune in for concise insights into Q3 trends and a glimpse into the more stable 2024 market predicted by Ed. ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

When I grow up, I want to be Marc Morgenstern of Blue Mesa Partners. He has all the checkboxes for me. He is a deal guy, author of The Soul of the Deal, Mentor at Large of the House Fund at Berkley, on the Rock and Roll Hall of Fame board, and lover of live music. While he was a Grateful Dead aficionado, I prefer the Van Halen-esque blistering guitar rock of the 80s. Nevertheless, he is one of those people I will consciously try to keep track of to see what he is up to. Most recently, he was my guest on the Defenders of Business Value Podcast. We talked about his new book, The Soul of the Deal, and "deal jamming," which is synonymous with musicians working collectively in very different directions to unite to create a piece of glorious live music. I loved this episode and I hope you do too. Reach Marc at: LinkedIn: linkedin.com/in/marc-morgenstern-he-him-90433b5 Website: bluemesapartners.com Email: morgenstern@bluemesapartners.com Twitter: MHMorgenstern ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders  

Join Ed Mysogland and guest Amber Fields, Chief Culture Officer at TrueU, as they explore the profound impact of company culture on business value. If you have spent any time in the central Indiana business community, you will have heard about TrueU. Once you learn about TrueU - their work and the people they serve - you can't help but become a fan. On this week's Defenders of Business Value Podcast, we visit with TrueU's Chief Culture Officer and Partner, Amber Fields. Over the 100+ episodes, most people cite their people as their most significant asset in the value stack, yet many need help attracting and retaining them. Amber made us think about our culture and where we are going and I'm sure you will be thinking about your culture and people, too.  Connect with Amber: LinkedIn: linkedin.com/in/amberwestfields Website: trueu.com Email: amber.fields@trueu.com  ************ About the Show The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.   ************ For past guests, please visit https://www.defendersofbusinessvalue.com/ Follow Ed: Connect on LinkedIn: https://www.linkedin.com/company/defenders-of-business-value Twitter: https://twitter.com/sellabizpod Instagram: https://www.instagram.com/defendersofbusinessvalue/ Facebook: https://www.facebook.com/bvdefenders