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Inc. Magazine Features Axiom Valuation Helping Business Owner Facing "Judgment Day"

The August 2004 issue of Inc. magazine features the two principals of Axiom Valuation Solutions, Dr. Stan Feldman and Roger Winsby, helping the owner of a well-established electrical contracting firm, to understand how much his business is worth as part of his exit planning decisions. The owner, who has recently experienced heart problems, has seen his business fall in revenue and profitability from its peak in 2001. The owner wants to know how much his business would be worth if he could rebuild it to its prior peak, and what his current options are for transitioning out of the business.

The article entitled "Judgment Day: Putting a price on a company that has been one entrepreneur’s life’s work" is part of Inc. magazine’s Ultimate Valuation Guide. The magazine sent its writer to observe Axiom’s business valuation results discussion – the owner chose to remain anonymous - and to participate in follow-up telephone calls. The article provides a rare, behind the scenes view of what private business owners go through in the process of learning "what they are worth".

Wiley Publishes a New Book on Valuing Private Firms

Principles of Private Firm Valuation
Dr. Stanley Jay Feldman, Chairman, Axiom Valuation
and Associate Professor of Finance, Bentley College

This book combines recent academic research and practical real-world experience to help readers better understand the multitude of factors that determine private firm value. For the financial professional serving private firms–who are increasingly being called upon to give advice on issues related to firm valuation and deal structure–this comprehensive guide discusses critical topics, including how firms create value and how to measure it, valuing control, determining the size of the marketability discount, creating transparency and the implications for value, the value of tax pass-through entities versus a C corporation, determining transaction value, and the valuation implications of FASB 141 (purchase price accounting) and 142 (goodwill impairment).

Dr. Stanley J. Feldman is Associate Professor of Finance at Bentley College, where he currently teaches courses in corporate finance with a focus on business valuation and business strategy at both the graduate and undergraduate levels. He is a member of the FASB Valuation Resource Group and is Chairman and co-founder of Axiom Valuation Solutions.

Featured Article:
Six Myths of Transacting a Private Business

In a recent speech to the Institute for Family-owned Businesses, Dr. Feldman articulated the size myths associated with transacting a private firm. They are:

• Myth 1: Firms in my industry always sell for a multiple of revenue.
• Myth 2: Public firm transaction multiples are larger than private firm transaction multiples.
• Myth 3: Acquirer’s of private firms over pay.
• Myth 4: Most transactions are within the same industry.
• Myth 5: Foreign buyers play no role in the market for private firms.
• Myth 6: Tax status has no impact on firm value.

How Accounting Firms are Growing Profits
Axiom Becomes the Outsourcing Solution for Accounting Firms

Axiom’s outsourcing business valuation solution turns a loss leader activity for most accounting firms into a profit growth engine. Accounting firm partners that use its outsourcing solution report a minimum increase in profits on valuation services of 300%.

Can You Afford Not to Outsource Your
Business Valuation Practice?

The move to outsourcing higher value-added services is beginning to occur, and the best example of this is the outsourcing of business valuation services. Even when an accounting firm has one or more partners involved in business valuation, it is not likely to be a profitable activity. Indeed, in most cases, business valuation services are a loss leader. In these cases accounting firms offer business valuation services because they are afraid if they do not they will lose other more valuable business.