Pre-Conference Overview

Preconference seminar (optional):
Valuation for Families in Business
Tuesday, June 17, 1 p.m.;
Cost: $275

“Valuation for Families in Business”
Forging a Fair Valuation of the Family Firm

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.

This seminar we take some of the mystery out of the valuation process. Mary Daugherty will discuss the practice of valuation, what is considered standard operating procedure, and why it is necessary.  The participants will learn what is relevant and why in a private company valuation.  Family members often must address the valuation of the company as they help plan for the future of the business and the current needs and the estate planning needs of the individual shareholders.  The goal is for everyone to know what questions to ask, what typically creates value for a business and how they can use this information to understand their own company’s valuation.

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?