Henry Ford published this purpose statement in 1907:

“I will build a motor car for the great multitude. It will be big enough for the family, but small enough for the individual to run and care for. It will be constructed of the best materials, by the ideal men to be hired, after the simplest designs that modern engineering can devise. But it will be so low in price that no man making a good salary will be unable to own one-and enjoy with his family the blessing hof hours of pleasure in God’s great open spaces.”

Now, according to the Detroit Free Press, Ford is suing the IRS (yes, really!) because they say they overpaid taxes.  I think Ford is trying to find money because they’re sinking.  Sad, really.

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Filed under: Small business

Let’s state you want to sell or buy a business. Or, suppose you want to gift a piece of your business to your family. Maybe you want to raise capital?

Well, you’ll need to determine the value of your business.

So, to get some perspective on the topic, I spoke to Scott Gabehart. He has valued over 700 businesses since 1991 and has written several books on the topic, such as The Business Valuation Book (with CD-ROM).

According to him, there are several approaches to getting a valuation:

Do-It-Yourself: Yes, the valuation process can be extremely complex. But Gabehart has an simple system that’ll provide a rough estimate.

First, you’ll need to calculate your company’s adjusted cash flow (ACF). This is:

Net income
+ Your salary
+ Your perks (personal travel, discretionary expenses)
+ Depreciation
+ Interest expense

After all, it’s common for owners to use their business to pay for personal expenses. Thus, it’s important to factor our certain items (for example, depreciation is a non-cash expense).

Now, once you have the ACF, you need to multiply it by a multiple. Generally, the higher the ACF, the higher the multiple.

Here are some guidelines from Gabehart:

• ACF up to $250K, multiples of 1 to 3
• ACF between $250K and $500K, multiples of 3 to 5
• ACF between $500K and $1m, multiples of 5 to 7
• ACF over $1m, multiples over 7

On the web Services: There are some web sites that generate basic valuations, which are usually based on real transactions. Examples include: BizBuySell.com and BizComps.com.

However, you need to be wary. According to David C. Baker (who operates ReCourses), valuation web services may “essentially be billboards to get you to hire a consulting firm, with very little hard content from a thought leadership perspective.”

Hire a Valuation Firm: Like any consulting industry, there are varying degrees of quality (yes, some valuation firms are fairly mediocre).

So, when selecting a valuation expert, look for the following:

• Is the person certified? The main organizations include: Institute of Business Appraisers, National Association of Certified Valuation Analysts, American Institute of Certified Public Accountants and American Society of Appraisers.
• Does the firm have a web site? This shows that the firm is serious.
• References? Don’t be afraid to ask for them.
• Costs? These should range from $2,000 to $15,000, depending on the reason for the valuation and the scope. Also, don’t pay the fee up-front; instead, pay based on different stages (the first may be the initial meetings for data input and the second could be the actual report).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Filed under: Estates

It’s a bit eclectic and not really an estate but I just love the livability of today’s home which was written up in the LA Times Hot Property section. Owned by Doug “SA” Martinez of the band 311 this home in the Los Angeles neighborhood of Los Feliz was built in 1927. The Spanish Colonial home is full of archways and stucco and original wood details. The four-bedroom home has two tiled balconies, one that’s off of the master suite. No decorator here, this home is a riot of different colors and styles, a comfortable hodge-podge of unmatched furniture, colorful art and books everywhere stuffed into armoire-like cases. The kitchen is the only room that looks bland. The brilliant blue-tiled restroom is a bit much but I love it for its vibrancy. The outdoor space is nice too with a saltwater pool and a custom Tennessee oak-covered patio with views of the Griffith Observatory. It is listed at $2.195 million.

For more prime properties and lush locations, see Luxury Homes and Mansions.

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Continue reading 311 In Los Feliz, Estate of the Day

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Filed under: Estates

From the Wall Street Journal’s Private Properties:
–Florida automobile dealer, Terry Taylor has listed his Palm Beach home, shown above, at $72.5 million which is almost three times what he paid in 2003. The main home was built circa 1924 and designed by veteran Palm Beach architect Addison Mizner. It has nine bedrooms, 15 bathrooms, a motion picture theater with a ticket window and concession stand, an exercise room, a wine cellar, pool, large pool home and two three-car garages, each with a second-floor guest apartment. The listing is here.
–Joseph Simmons, superior known a Rev. Run, has relisted his suburban New Jersey house for $5.2 million.

From the LA Times Hot Property:
–William Chadwick has put his home in the high-priced Carbon Beach area of Malibu on the market for $65 million. It was our estate of the day on Friday.
–”Family Guy” creator Seth MacFarlane picked up a home in Beverly Hills that wasn’t listed for $13.5 million.
TV producer Jay Tarses has sold a home he built in 1987 in Pacific Palisades for $2.995 million. The home was first listed in January for $3.489 million.
–Singer Doug “SA” Martinez of the band 311 has listed his funky Spanish colonial in Los Feliz. It’s our estate of the day later this day.
–Philippe Naouri — a.k.a. the Vintage Denim King has put his Hollywood Hills contemporay on the market for $3.185 million. The listing is here.

From the Real Estalker:
–Rage Against the Machine drummer Brad Wilk has picked up a home in Calabasas that was listed at $5.89 million. Britney Spears has also been said to be looking at homes in the same area of Calabasas.
–Hugh Laurie has paid $3.84 million for an English Country style residence located in the Outpost Estates section of the Hollywood Hills from music manager Pat Magnarella who bought the home in 2001 for $2 million.
–Actor Justin Long has picked up a two-bedroom bachelor pad in the Blue building on Norfolk Street in New York for $2.425 million.
–Businessman Peter Morton has put a seven bedroom home on the market in Beverly Hills for $22.5 million. The listing is here and notes that the home has such a view that the property will be shown only on a clear day.
–Ambleside, the Indian Hill, Ohio residence of late Cincinnati Reds owner Marge Schott has hit the market for $5.4 million. The listing is here.

From the NY Post’s Gimme Shelter:
–Katie Holmes has been spotted duplex penthouse at Trump park Avenue with a $200,000-a-month price tag.
–A new listing in the famed Dakota building is hitting the market with a $7.5 million asking price.
–Alex Rodriguez, aka A-Rod, was seen a few weeks ago checking out units at 15 Central Park West just two blocks from where Madonna lives. He’s been checking out the four-bedroom duplex that Lindsay Rosenwald has put unofficially on the market for $90 million through Brown Harris Stevens.

From Berg Properties Large Time Listings:
–Nicole Kidman has purchased record producer and songwriter Ron Fair’s home in Beverly Hills, Calif. for an undisclosed price after it had been listed for $4.795 million.
–Los Angeles anchorman Harold Greene and his wife, Charlene have put their Toluca Lake home on the market for $2.299 million. The listing is here.
–Basketball star Elton Brand has placed his three-bedroom, Hollywood Hills home on the market for $4,998,500, two years after he first had listed the home at close to $5 million. The listing is here.

From Golf Magazine:
–Golfer Phil Mickelson’s home, built on 4.55 acres in Rancho Sante Fe, California is on the market for $10,750,000 - $12,225,876. The listing is here.

From News Australia:
–Russell Crowe is renting a home for around

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Diverse entrepreneurs are changing face of state's small business - NewsOK.com (subscription)

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Diverse entrepreneurs are changing face of state's small business NewsOK.com (subscription), Share This Share This No Comments » 13 07 2008 Goodbye, Windows. Hello, MAC! Posted by: in Your Business I confess, I’ve been sliding towards Apple for a long time. I bought an iPod a few years ago, and used iTunes. My old PC/laptop is on its last legs (almost 3 years old), and everyone has been saying “buy a Mac.” I was hesitant until a friend granted me to try his, and I was hooked! Image details: Steve Jobs Delivers Keynote Speech At Macworld Conference & Expo served by picapp.com The best things about the Mac: * No need for stupid, intrusive spyware. The PC-Cillin was nearly worse than the viruses it was supposed to protect me from. * Simple to hook things up and get started. The MACBook found my printer and got it going easily and swiftly. Same with everything else. Windows always made things such a struggle. * Everything I need (software, downloads) I can find for Mac. Like word processing. I use OpenOffice (open source, free stuff) and iWork. I hardly even use iWork! I feel like I’ve been in a dark cave and just came out into the light. I swear, things just don’t have to be as difficult as Windows makes them. Why did I wait so long? Tags: apple, baby boomers, macbook Share This Share This Share This No Comments »

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