Pre-Conference Overview

Preconference seminar (optional):
Buying/Selling a Family Business
Tuesday, October 5, 1 p.m.;
Cost: $250

“Buying, Selling and Valuing
a Family Business”
What You Really Need to Know
presented by Frank O'Shea and Alan MacEwan

Many family business owners have found the process of valuing their company challenging and fraught with peril.  Too high a valuation inhibits estate planning tools, too low a valuation sparks debate on liquidity issues.  There is often little understanding of the valuation methods accounting and finance professionals use and unlimited debate on the assumptions used to determine value.  Add to this mix a large number of minority shareholders and there is an additional complication of applying a minority discount which many shareholders reject out of hand as unfair.

In this seminar we take some of the mystery out of the valuation process. Alan MacEwan is highly experienced in the kinds of issues that companies need to be thinking about in advance in order to buy, or sell a family company. To get real value requires advanced planning that addresses a spectrum of issues. Frank O’Shea knows that well-run family companies sell for a premium over non-family firms. He advocates that rules of thumb are often way off the mark, and he explains the nuances of getting to the true value of the family company, so that vagueness does not create ill-will.

Topical Outline:

1. Making owners aware of the uses of valuation and the motives for the value
2. Help owners understand the various valuation methods
3. Evaluate a case study on valuation
4. Discussion of minority discount
5. Summary of key questions to ask regarding any valuation

Key Messages Participants Should Leave With:

Private business valuation is not an exact science.  Do I understand the role of assumptions in valuation and the sensitivity of the value to these assumptions?

Am I able to articulate the important facts specific to our company’s valuation?

Do I know the predominant use of the valuation for our company and does it matter?

How can I help educate our family on valuation?