15 Mar Book Review: “Concise Overview of Business Valuation
A Review by Julio Flavors
Certain concepts are really hard for me to grasp. Infinity. Light. The space-time continuum. Retirement. Business valuation.
As a business owner, I can get by without fully understanding the meaning of “infinity” and “light-year.” But “business valuation” might hit home, especially when it comes to understanding “retirement.”
None of my college courses taught me how to value my own business. Why? Maybe the professors themselves didn’t understand it.
Once I attended a seminar on business valuation. I was interested in the subject and in removing my dark cloud of ignorance. But I was lost. I just sat there critiquing the presenter’s style and the quality of listeners’ questions – wondering if I was the only one in the dark.
Later, someone told me that the presenters of these seminars really don’t want you to “get it” anyway – because then you wouldn’t need to hire them. In other words, their whole objective is to convince you that you have no chance of getting it and need to hire them to do it for you.
My frustration turned to complete apathy. Later I was in the bookstore and saw a little book called A Concise Overview of Business Valuation; $35 later I wondered if I was on another path to disappointment.
But I was not disappointed. The book is clear and succinct, and offers a commonsense approach to business valuation. Chapter by chapter, Perkins helped me understand basic concepts of business valuation. Although I have no mistaken belief that I can now value a business with confidence, I can honestly say that the dark cloud has lifted.
I also see that I need to work on building value in my own business.
After reading the chapter on “Value Drivers,” I recognize characteristics of my business that, according to Perkins, drag down value. The good news is that they are things I should be able to change.