Business Valuation Seminars

The U.S. Small Business Administration (SBA or Agency) is amending various regulations governing SBA's 7(a) Loan Program and 504 Loan Program, including regulations on use of proceeds for partial changes of ownership, lending criteria, loan conditions, reconsiderations, and affiliation standards, to expand access to capital to small businesses and drive economic recovery. SBA's current regulations do not permit 7(a) loan proceeds to be used for partial changes of ownership. SBA will now allow loan proceeds to be used for partial business acquisitions. The Final Rule also clarified that the selling owner is allowed to “remain as an owner and involved in the day-to-day business, including as an officer, director, Key Employee, or employee”. This will have a significant impact on business valuations as lending institutions will have to familiarize themselves with the concept of the Discount for Lack of Control or Minority Interest Discounts. These are critical components of the valuation that are confusing to many. 
 
Join us as we walk you through the development of a valuation of a partial interest of a fictitious company. We will show you how our process works. This will include:

• Properly normalizing financial statements
• Properly determining a reasonable Officer Compensation figure
• Factors in determining how to properly determine future cash flows
• How market multiples are used to determine value
• How discount and capitalization rates are determined
• Explain and educate about Discount for Lack of Control and its impact on valuation
• Reconciling values and determining the fair market value of intangible assets

FEATURED SPEAKER
Lance LeBlanc is the managing member of Green Country Business Valuations in Tulsa, Oklahoma. He has done hundreds of SBA compliant business valuations for banks across the country. He holds a Bachelor of Business Administration degree in Finance from the University of Oklahoma.