9 Factors that Affect the Value of Your Business

Blood, toils, tears and sweat go into building our businesse; however their values are very rarely a direct product of our efforts.  A recent bidding war between HP and Dell pushed the stock price of 3Par from $10.00 to $33.00 over a two week period.  The company ultimately sold for $2Billion.  It seemed that both HP and Dell decided that they needed a company that sold storage servers and were ready to pay far more than an independent valuation would have gotten 3 Par (the market had valued it at $700 million).  Of course most businesses are not 3Par, and most business owners need to take numerous factors into account when determining the value of their business.  Some of these are discussed below:
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The Parable of the Toy Soldier: How a Small Gaming Business Became a Victim of their Own Success.

This story has all the ingredients of a great novel - drama, intrigue, the Chinese, hostile takeovers and a guy named Lonnie.   It has shaken the world of miniature gaming, where excitement is usually imagined rather than real.  And, although the details are murky, it is an excellent case study that demonstrates how mistakes made by business owners can result in severe and unintended consequences.

On January 17th, the founder of Wargames Factory, Tony Reidy issued an open letter:

Wai Kee Hui - if your true intention is to salvage this company and pay back the debts - you have started down the absolutely wrong path.

I understand that this is so far beneath you because you run so many multi-yuan millions businesses - but if you want to salvage anything, you are proceeding in the absolutely worst direction right now.

Your faith in Lonnie Mullins is incredibly misguided. You're trusting a guy who threw me under the bus in order to save his own skin. A guy who has no honor whatsoever.

Read full letter Open letter from Tony Reidy

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10 Year End Financial and Tax Tips for Your Small Business

As the end of the year approaches, some of us find ourselves overwhelmed by top 10 lists, the shopping masses and endless renditions of Winter Wonderland.  Businesses, on the other hand, tend to experience a slowdown, which makes it the perfect time for small business owners (when not partaking in holiday madness) to take a closer look at their overall business, financial and tax situation.  A thorough review and analysis of your business will allow you to optimize your current financial situation as well as prepare for the future. 

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Accounting for Non Accountants : Debit, Credits and Financial Statements

When people hear the term accounting, there is an involuntary reaction whereby the comprehension centres (the medical term) of their brains tend to shut down, and sleep mode is activated.  This is unfortunate, as accounting, especially to a small business owner, can actually be quite interesting.  It is one of the primary tools by which business owners and other interested parties can gage the success of their business, as well as identify areas that require attention andneed improvement.  To understand accounting, business owners need to have a basic understanding of how it works (debits and credits) and it's results (financial statements), explained below:

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