There are many reasons to perform a valuation of a construction business, but the most common is an ownership transition. Before the company proceeds with ownership transition—whether fractional interest buyouts, employee stock ownership plans (ESOPs), equity incentives, or outright acquisition—an accurate understanding of the company’s value is necessary. Valuation in the construction industry is based on the same fundamental approaches as other industries, but there are some important differences. The main issue is the cyclical and project-driven nature of the construction business, which makes every year different from the last, and makes financial projections very difficult and uncertain. Because business value is based largely onRead More →

The Kahn Acadamy is an online school, founded by Salman Kahn, whose mission is “to provide a free, world‑class education for anyone, anywhere.” Salman Amin “Sal” Khan is an American teacher, entrepreneur, and a former hedge fund analyst. The Khan Academy has produced over 6,500 video lessons teaching a wide spectrum of academic subjects, mainly focusing on mathematics and sciences. As of October 13, 2015, the Khan Academy channel on YouTube has about 2,285,000 subscribers and the Khan Academy videos have been viewed more than 658 million times. In 2012, Time named Salman Khan in its annual list of the 100 most influential people in theRead More →

For Those of Us Who Specialize in Fuzzy Thinking One of the key concepts in business valuation is the somewhat vague notion that “value is the present worth of future benefits.” Another key concept is that the value of a business is “the price at which the property would change hands between a willing buyer and a willing seller.” So here we have two nice vague, fuzzy concepts upon which to build an entire profession. For those of us who specialize in fuzzy thinking, it’s perfect. Tell Me About Your Future Benefits Note that the “future benefits” idea doesn’t actually say anything about money. The benefits couldRead More →