Business Valuation Methods

Adapted from content excerpted from the American Express® OPEN Small Business Network

There are a number of instances when you may need to determine the market value of a business. Certainly, buying and selling a business is the most common reason. Estate planning, reorganization, or verification of your worth for lenders or investors are other reasons.

Valuing a company is hardly a precise science and can vary depending on the type of business and the reason for coming up with a valuation. There are a wide range of factors that go into the process -- from the book value to a host of tangible and intangible elements. In general, the value of the business will rely on an analysis of the company's cash flow. In other words, its ability to generate consistent profits will ultimately determine its worth in the marketplace.

Business valuation should be considered a starting point for buyers and sellers. It's rare that buyers and sellers come up with a similar figure, if, for no other reason, than the seller is looking for a higher price. Your goal should be to determine a ballpark figure from which the buyer and the seller can negotiate a price that they can both live with. Look carefully at the numbers, but keep in mind this caution from Bryan Goetz, president of Capital Advisors, Inc., a business appraiser: "Businesses are as unique and complex as the people who run them and are not capable of being valued by a simplistic rule of thumb."
Here are some of the common methods used to come up with a value.

* Asset valuation
* Capitalization of income valuation
* Owner benefit valuation
* Multiplier or market valuation

Asset Valuation

Asset valuation is used when a company is asset-intensive. Retail businesses and manufacturing companies fall into this category. This process takes into account the following figures, the sum of which determines the market value:

* Fair market value of fixed assets and equipment (FMV/FA) - This is the price you would pay on the open market to purchase the assets or equipment.
* Leasehold improvements (LI) - These are the changes to the physical property that would be considered part of the property if you were to sell it or not renew a lease.
* Owner benefit (OB) - This is the seller's discretionary cash for one year; you can get this from the adjusted income statement.
* Inventory (I) - Wholesale value of inventory, including raw materials, work-in-progress, and finished goods or products.

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Capitalization of income valuation

This method places no value on fixed assets such as equipment, and takes into account a greater number of intangibles. This valuation method is best used for non-asset intensive businesses like service companies.

In his book "The Complete Guide to Buying a Business" (Amacom, 1994), Richard Snowden cites a dozen areas that should be considered when using Capitalization of Income Valuation. He recommends giving each factor a rating of 0-5, with 5 being the most positive score. The average of these factors will be the "capitalization rate" which is multiplied by the buyer's discretionary cash to determine the market value of the business. The factors are:

* Owner's reason for selling
* Length of time the company has been in business
* Length of time current owner has owned the business
* Degree of risk
* Profitability
* Location
* Growth history
* Competition
* Entry barriers
* Future potential for the industry
* Customer base
* Technology

Again, add up the total ratings, and divide by 12 to come up with an average value to use as the capitalization rate. You next have to come up with a figure for "buyer's discretionary cash" which is 75% of owner benefit (seller's discretionary cash for one year as stated on the income statement). You multiply the two figures to determine the market value.

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Owner benefit valuation

This formula focuses on the seller's discretionary cash flow and is used most often for valuing businesses whose value comes from their ability to generate cash flow and profit. It uses a fairly simple formula -- you multiply the owner benefit times 2.2727 to get the market value. The multiplier takes into account standard figures such as a 10% return on investment, a living wage equal to 30% of owner benefit, and debt service of 25%.

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Multiplier or market valuation

This approach finds the value of a business by using an "industry average" sales figure as a multiplier. This industry average number is based on what comparable businesses have sold for recently. As a result, an industry-specific formula is devised, usually based on a multiple of gross sales. This is where some people have trouble with these formulas, because they often don't focus on bottom line profits or cash flow. Plus, they don't take into account how different two businesses in the same industry can be.

Here are a few industry multiplier examples, as mentioned in "The Complete Guide to Buying a Business" by Richard Snowden (Amacom, 1994):

* Travel agencies - .05 to .1 X annual gross sales
* Ad agencies - .75 X annual gross sales
* Retail businesses - .75 to 1.5 X annual net profit + inventory + equipment

To find the right multiplier for your industry, you can try contacting your trade association. Another option is to utilize the services of a broker or appraiser who specializes in businesses such as yours.

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Creating an Effective Job Description

Adapted from content excerpted from the American Express® OPEN Small Business Network

Creating a clear job description before you begin the hiring process can help you choose the best candidate from a pool of applicants. It usually consists of two areas -- a summary of the job's responsibilities, and a list of the key duties that will be performed. It's worth your time and effort to think the job description through completely. A confusing, hazy, or incorrect description can make it much harder for you to match a candidate and a job, because you're not sure about exactly what the job entails.

An accurate job description is also essential for drafting classified ads, job postings or other recruitment efforts. It lets you be clear on exactly which talents you're looking for, and focus your ad on those attributes to attract the most qualified candidates.

Use the tips below when you're drafting a job description.

Avoid generalizations

Be as specific as possible when you describe the duties and responsibilities you will need this employee to perform. Think in terms of the benefits this employee will provide to your organization or to your customers/clients. For example, don't describe a video store clerk simply as someone who will "rent videos to customers." Instead, if you use something like "will assist customers in choosing movies they will like by sharing his or her knowledge of recent or classic films," you will know you need someone who loves film and can convey their enthusiasm to your customers.

Prioritize

Once you've created a list of responsibilities and duties, put them in order of importance. Start with skills that are integral to the job to be performed. This way you will know what is necessary for the successful execution of the job, what simply is desired, and what may actually be irrelevant. Hiring is often a matter of trade-offs, so by prioritizing, you're helping yourself determine what you can or can't live with.

Use measurable criteria

Be explicit about the kind of performance you're looking for from someone, and whenever possible look for ways to quantify those criteria with numbers or dates. Otherwise, you may find that you've hired someone who can perform the necessary tasks, but falls short in productivity or throughput. For example, will an account manager be working with one, four or ten accounts at a time? Will a bookkeeper be expected to update accounts receivable daily, weekly or monthly?

Ask for help

Spend time with others in your organization who will be managing or interacting with a new employee to find out what they think the chief duties of this person should be. Those who are on the front lines with someone often know more about what day-to-day skills are necessary to perform a job successfully. You'll find this input invaluable

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maintain eye health

reduce eye exercises tension Without we realize, sometimes we "punish" our own eyes. For example, we have eight hours memelototi the numbers or letters on the computer screen. The lens or eight hours per day. "Torture" that we often do not realize is while reading the back under the lights are not bright enough. Viewing habits are bad, no wonder more and more people with eye problems. click - Detail habits-bad habits on the make musculature around the eyes become stiff and the ball hit the eyes, change shape and obstruct circulation. As a result, the suffering dim far or near. Muscle tension in the lid can also lead to a shifting of the ball. The more serious, can result in cataracts. One way mereduksi eye muscle tension exercise is as follows: 1. Massage area under both eyes using the middle finger. 2. Press a bit and feel musculature of the rigid. 3. This exercise can give new energy to the eye. But remember, if the first time you try, do not over-do this exercise, because it can cause head pain. 4. Then, switch on the bones over the eye. Give a massage several times. You can use the thumb for this section. 5. Massage the muscle-fiber rigid at the top of the eye near the nose, and then navigate to the corner of the eyes and massage gently. Perform this exercise in both eyes. Then move to the musculature at the top of the eyebrow. Squeeze the rigid around the eye is believed to help improve the condition of the ball telalu prominent. Also, the patient's eye, sensitive to light, or eyes that are too sipit. Use a hand. Another way to ease eye fatigue is to use a hand. How, letakan a hand in each eye, and silangkan fingers both hands to one another. After both eyes closed by the hands and there is no light through the entrance between the fingers, let's eyes open. Hold that position some time and make sure, you really see the darkness. Do this several times a day. CLICK - DetailGerakan Mata Trained eye movement can be done in three ways: 1. The eye. Find a position right to sit facing the wall. From where you sit, view as the center point of a view that became the starting point. Then slowly directed the ball to the left eye as far as possible without having to move the head. Then, referring again to the position of a starting point. Repeat the movement to the right before and return to the original position. Then, referring to the top of the ball slowly and return to the starting point. Do the same to the bottom. That must be make sure the head is always upright and your eyes always refer back to the starting point before the other movements. If not, do not make haste because it can cause headaches. For beginners, do the movement once a day. If you are, do the exercise about 10 times per day. 2. Play ball Mata Next exercise, play the ball. As with earlier practice, initially directed the ball to the left eye, as far as you can. Then turn to the right, up, down, and back to the position left. Perform this exercise, initially once a day, slowly. 3. The exercise Objects You can also practice with the view that the object is very far, and then switch to the view that the object is very close to the eye. To select items that are near the object is green, but not too bright. The color green can be a soothing eye fatigue. Before the break in the evening, try a wide-open eyes wide and basuh into the water that flows. Do 12 times, use to clean the day after beraktivitas. The kidney Affecting Experts believe that the reflection kidney disease can affect the eyes. If you want your eyes clear and bright, it's good in a way stimulating kidney squeeze dots on the hands or feet in the related kidney. You can also memijit in the area between two toes. This serves to maintain eye health. Consequently, even without the cost, you can make eye care. Source: http://www.tabloidnova.com/articles.asp?id=4058
Indonesia > Inggris tukar Terjemahkan

3D of copy technology

World energy industry, chemical and oil industry in the United States with the release of digemparkan technology applied Anyar issued by the Ohio State University. ECVT is, or electrical capacitance volume Tomography, a technology that uses sensors field static electricity that can display 3-dimensional images from the behavior of gases and particles in the reactor closed. This means adopting the technology of scanning or photocopies can see in real time and 3-dimensional movement of gases and particles in the reactor and boiler industry. ECVT has a high level of accuracy, and the embryo-based clea

Vandal Exercise

Exercise is a leader. If it was good, also good deeds. If it is damaged, corrupted also deeds. So keep the heart from damage and is certainly required. About vandal hearts, Ibnul Imam Qayyim rahimahullah said there are five things, 'interact with many people (good and bad), delusion empty, depending on other than Allah, satiety and many sleep. "

Dahsyatnya Sakaratul Maut

Dahsyatnya Sakaratul Maut, Siapkah kita untuk menghadapinya ?
“Kalau sekiranya kamu dapat melihat malaikat-malaikat mencabut nyawa orang-orang yang kafir seraya memukul muka dan belakang mereka serta berkata, “Rasakanlah olehmu siksa neraka yang membakar.” (niscaya kamu akan merasa sangat ngeri) (QS. Al-Anfal {8} : 50).

“Alangkah dahsyatnya sekiranya kamu melihat di waktu orang-orang yang zalim (berada) dalam tekanan-tekanan sakaratul maut, sedang para malaikat memukul dengan tangannya (sambil berkata), “Keluarkanlah nyawamu !” “Pada hari ini kamu dibalas dengan siksaan yang sangat menghinakan, karena kamu selalu mengatakan terhadap Alloh (perkataan) yang tidak benar dan kerena kamu selalu menyombongkan diri terhadap ayat-ayat-Nya”. (Qs. Al- An’am : 93).

“Sakitnya sakaratul maut itu, kira-kira tiga ratus kali sakitnya dipukul pedang”. (H.R. Ibnu Abu Dunya).

Cara Malaikat Izrail mencabut nyawa tergantung dari amal perbuatan orang yang bersangkutan, bila orang yang akan meninggal dunia itu durhaka kepada Alloh, maka Malaikat Izrail mencabut nyawa secara kasar. Sebaliknya,bila terhadap orang yang soleh, cara mencabutnya dengan lemah lembut dan dengan hati-hati. Namun demikian peristiwa terpisahnya nyawa dengan raga tetap teramat menyakitkan.

Di dalam kisah Nabi Idris a.s, beliau adalah seorang ahli ibadah, kuat mengerjakan sholat sampai puluhan raka’at dalam sehari semalam dan selalu berzikir di dalam kesibukannya sehari-hari. Catatan amal Nabi Idris a.s yang sedemikian banyak, setiap malam naik ke langit. Hal itulah yang sangat menarik perhatian Malaikat Maut, Izrail. Maka bermohonlah ia kepada Alloh Swt agar di perkenankan mengunjungi Nabi Idris a.s. di dunia. Alloh Swt, mengabulkan permohonan Malaikat Izrail, maka turunlah ia ke dunia dengan menjelma sebagai seorang lelaki tampan, dan bertamu kerumah Nabi Idris.

“Assalamu’alaikum, yaa Nabi Alloh”. Salam Malaikat Izrail,“Wa’alaikum salam wa rahmatulloh”. Jawab Nabi Idris a.s.Beliau sama sekali tidak mengetahui, bahwa lelaki yang bertamu ke rumahnya itu adalah Malaikat Izrail. Seperti tamu yang lain, Nabi Idris a.s. melayani Malaikat Izrail, dan ketika tiba saat berbuka puasa, Nabi Idris a.s. mengajaknya makan bersama, namun di tolak oleh Malaikat Izrail. Selesai berbuka puasa, seperti biasanya, Nabi Idris a.s mengkhususkan waktunya “menghadap”. Alloh sampai keesokan harinya. Semua itu tidak lepas dari perhatian Malaikat Izrail. Juga ketika Nabi Idris terus-menerus berzikir dalam melakukan kesibukan sehari-harinya, dan hanya berbicara yang baik-baik saja. Pada suatu hari yang cerah, Nabi Idris a.s mengajak jalan-jalan “tamunya” itu ke sebuah perkebunan di mana pohon-pohonnya sedang berbuah, ranum dan menggiurkan.

“Izinkanlah saya memetik buah-buahan ini untuk kita”. pinta Malaikat Izrail (menguji Nabi Idris a.s).

“Subhanalloh, (Maha Suci Alloh)” kata Nabi Idris a.s.“Kenapa ?” Malaikat Izrail pura-pura terkejut.“Buah-buahan ini bukan milik kita”. Ungkap Nabi Idris a.s.Kemudian Beliau berkata: “Semalam anda menolak makanan yang halal, kini anda menginginkan makanan yang haram”. Malaikat Izrail tidak menjawab. Nabi Idris a.s perhatikan wajah tamunya yang tidak merasa bersalah. Diam-diam beliau penasaran tentang tamu yang belum dikenalnya itu. Siapakah gerangan ? pikir Nabi Idris a.s.

“Siapakah engkau sebenarnya ?” tanya Nabi Idris a.s.” Aku Malaikat Izrail”. Jawab Malaikat Izrail.Nabi Idris a.s terkejut, hampir tak percaya, seketika tubuhnya bergetar tak berdaya.“Apakah kedatanganmu untuk mencabut nyawaku ?” selidik Nabi Idris a.s serius.“Tidak” Senyum Malaikat Izrail penuh hormat.”Atas izin Alloh, aku sekedar berziarah kepadamu”. Jawab Malaikat Izrail.Nabi Idris manggut-manggut, beberapa lama kemudian beliau hanya terdiam.“Aku punya keinginan kepadamu”. Tutur Nabi Idris a.s..”Apa itu ? katakanlah !”. Jawab Malaikat Izrail.“Kumohon engkau bersedia mencabut nyawaku sekarang.

Lalu mintalah kepada Alloh SWT untuk menghidupkanku kembali, agar bertambah rasa takutku kepada-Nya dan meningkatkan amal ibadahku”. Pinta Nabi Idris a.s.“Tanpa seizin Alloh, aku tak dapat melakukannya”, tolak Malaikat Izrail.

Pada saat itu pula Alloh SWT memerintahkan Malaikat Izrail agar mengabulkan permintaan Nabi Idris a.s. Dengan izin Alloh Malaikat Izrail segera mencabut nyawa Nabi Idris a.s. sesudah itu beliau wafat.Malaikat Izrail menangis, memohonlah ia kepada Alloh SWT agar menghidupkanNabi Idris a.s. kembali. Alloh mengabulkan permohonannya. Setelah dikabulkan Allah Nabi Idris a.s. hidup kembali.“Bagaimanakah rasa mati itu, sahabatku? ” Tanya Malaikat Izrail.“Seribu kali lebih sakit dari binatang hidup dikuliti”. Jawab Nabi Idris a.s.“Caraku yang lemah lembut itu, baru kulakukan terhadapmu?”. Kata Malaikat Izrail.

Masya Alloh, lemah-lembutnya Malaikat Maut (Izrail) itu terhadap Nabi Idris a.s.

Eksekusi Amrozi CS

TANGGAL UNIK EKSEKUSI TRIO BOM BALI I

Eksekusi Amrozi, Ali Gufron alias Mukhlas, dan Imam Samudra akhirnya dilakukan pada minggu (11/9) dini hari sekitar pukul 00.15 di bukit Nirbaya, Nusakambangan, Cilacap, Jawa Tengah. Akhirnya pihak kejagung pun memberanikan diri mengeksekusi pelaku bom Bali tahun 2002, enam tahun silam.

Saya hanya ingin mencermati dan menganalisa tanggal eksekusi Amrozi cs yakni 9 Nopember. Tanggal ini jika ditulis dengan angka menurut tata penulisan baku bahasa Indonesia akan ditulis dengan 9/11.

Tanggal 9 bulan 11. Ditulis 9/11, dibaca sembilan sebelas atau nine eleven dalam pelafalan bahasa Inggris.

Nah, ini hampir identik dengan tanggal terjadinya serangan 'teroris' terhadap dua gedung WTC di Amerika Serikat pada 11 September. Tanggal ini jika ditulis menurut aturan penulisan bahasa Inggris yang mendahulukan bulan lalu diikuti tanggal maka 11 September akan ditulis September 11th, atau 9/11. Dibaca nine eleventh atau ditulis 9/11

Entah apakah ini mungkin adalah jawaban dari maksud dan tujuan kejaksaan agung menentukan hari pelaksanaan eksekusi tiga terpidana mati kasus bom Bali agar mendapatkan kesesuaian tanggal dengan tragedi WTC 911? Entahlah... Mengingat waktu eksekusi yang tidak jelas dan tidak pasti, hanya awal November saja petunjuk yang selama ini beredar.

Eksekusi telah dilaksanakan. Bagaimana menurut anda tentang eksekusi Amrozi cs ini, apakah anda mendukung, menolak atau punya jawaban lain? Apa alasannya? Bagaimana pula dengan tanggal unik 9 November (9/11) dengan September 11th (9/11)??