Lance Madson is the CPA, MBT, and ABV for Boulay Group, an accounting and financial consulting firm. Lance leads the firm’s business valuations department, as well as specializes in tax planning for both businesses and individuals. On this week’s show, Lance discusses Boulay’s 7 step process on how they accurately evaluate businesses worth between $1 million to $50 million dollars.
Key Takeaways:
[1:30] Who is Lance and what does he do for Boulay?
[5:45] Boulay has a 7-step process that helps them properly assess a business.
[8:00] Lance breaks down the thought process behind step 1, which offers three approaches on how to look and evaluate a business.
[11:50] What would Lance need to know, when a client comes to them with projected business growth? How does he know the client is being reasonable with his projections?
[17:15] What types of things does Lance need from the client, and what should you prepare for in order to make your evaluation as accurate as possible?
[23:10] Lance also has access to outside resources and databases that help compare a client’s industry and their projected growth.
[26:15] Lance and his team always look at the debt-to-equity ratio in any business they evaluate.
[30:40] Another aspect Lance considers is the compensation aspect. Are there any family members taking a salary when they don’t spend time at the company?
[36:15] What happens when business owners disagree with the numbers Lance provides?
[39:45] We’ve just come off an election year. What trends has Lance seen so far?
[44:45] What should business owners know about their business?
[47:55] Want to work with Boulay? Lance discusses prices and what you can expect from their service.
Mentioned in This Episode:
Call Lance: 952-893-9320