Archive for February, 2016

Is the ESOP right for your business?

As we talked about in an earlier post, employee stock ownership plans, or ESOPs, are gaining in popularity as a cost effective way to transfer ownership to the company’s employees. But not every company is a good candidate for an ESOP. Before taking the plunge, consider some key questions than can make or break a… Continue Reading

Is CAPM useful in private company valuation?

If you are valuing a small business, you have run across the need to establish the discount rate. This is part of risk assessment, a key element in any business valuation. In addition to the well known Build-Up model, you also have the capital asset pricing model, or CAPM, to calculate the discount rates. CAPM… Continue Reading