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http://www.oaklandairport.hilton.com/

FORENSIC SERVICES SECTIONS

BUSINESS VALUATION SECTION MEETING Thursday, August 14, 2014

Hilton Oakland Airport Fountain Room

PROGRAM

8:30 am Registration, Continental Breakfast, and Networking

9:00 Welcome, Opening Remarks, Section Business Daniel Ross, CPA, Owner/President, Daniel J. Ross Accountancy Corporation Business Valuation Section Chair, Forensic Services Section

9:30 – Presentation 1: 11:30 BizComps: Study of Small Business Values CPE: 2.0 Jack R. Sanders, CBA, CVA, Managing Director, Spectrum Corporate Resources, LLC, Las Vegas

Noon Lunch and Networking

1:30 pm – Presentation 2: 3:00 Leveraging Values for Productivity and Profit CPE 1.5

Dave Shoquist, CVA, Founder, BV Backoffice, Mountain View

3:00 – Questions, Networking, Adjournment 3:30

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Revised 8/11/2014

Forensics Services Section Meeting Dates 2014-15(16)

Forensic Services Section Chair - Marty Laffer Steering Committee Meeting Dates Thursday, May 29, 2014 LAX Hilton Thursday, October 30, 2014 OAK Hilton Wed/Fri, January 14-16, 2015 Palm Springs Thursday, May 28, 2015 South Thursday, October 29, 2015 North Wed/Fri, January 13-15, 2016 TBD Thursday, May 26, 2016 South Business Valuation Section Chair - Dan Ross Wednesday, May 28, 2014 – Joint All Sections LAX Hilton Thursday, August 14, 2014 OAK Wednesday, October 29, 2014 – Joint All Sections OAK Thursday, February 19, 2015 LAX Wednesday, May 27, 2015 – Joint All Sections LAX Thursday, August 20, 2015 OAK Wednesday, October 28, 2015 – Joint All Sections OAK Thursday, February 18, 2016 LAX Wednesday, May 25, 2016 – Joint All Sections LAX Economic Damages Section Chair - Haley Eckhart Wednesday, May 28, 2014 – Joint All Sections LAX Hilton Thursday, August 28, 2014 OAK Wednesday, October 29, 2014 – Joint All Sections OAK Wednesday, February 25, 2015 LAX Wednesday, May 27, 2015 – Joint All Sections LAX Thursday, August 27, 2015 OAK Wednesday, October 28, 2015 – Joint All Sections OAK Wednesday, February 24, 2016 LAX Wednesday, May 25, 2016 – Joint All Sections LAX Family Law Section Chair - Mike Radakovich Wednesday, May 28, 2014 – Joint All Sections LAX Hilton Friday, August 15, 2014 OAK Wednesday, October 29, 2014 – Joint All Sections OAK Thursday, November 6, 2014 – Foundation Family Law Conference LAX Hilton Friday, November 7, 2014 – Foundation Family Law Conference San Francisco Friday, February 20, 2015 LAX Wednesday, May 27, 2015 – Joint All Sections LAX Friday, August 21, 2015 OAK Wednesday, October 28, 2015 – Joint All Sections OAK Friday, February 19, 2016 LAX Wednesday, May 25, 2016 – Joint All Sections LAX Fraud Section Chair - Coral Hansen Wednesday, May 28, 2014 – Joint All Sections LAX Hilton Thursday, September 11, 2014 LAX Wednesday, October 29, 2014 – Joint All Sections OAK Thursday, February 26, 2015 LAX Wednesday, May 27, 2015 – Joint All Sections LAX Wednesday, August 26, 2015 OAK Wednesday, October 28, 2015 – Joint All Sections OAK Thursday, February 25, 2015 OAK Wednesday, May 25, 2016 – Joint All Sections LAX

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FORENSIC SERVICES SECTIONS OFFICERS

Forensic Services Section Officers 2014-2016

Position

Martin G. Laffer Tel. 310-274-7600 CHAIR Laffer & Gottlieb Fax 310-274-2625 9454 Wilshire Blvd., Ste 920 [email protected] Beverly Hills, CA 90212-2911 B. Marie Ebersbacher Tel. 310-268-2076 VICE CHAIR CBIZ MHM LLC Fax 866-700-2955 10474 Santa Monica Blvd., Ste 200 [email protected] Los Angeles, CA 90025-6930 Greg J. Regan Tel. 415-836-4034 TREASURER Hemming Morse LLP Fax 415-777-4034 160 Spear St., Ste 1900 [email protected] San Francisco, CA 94105-1548 Peter W. Brown Tel. 213-356-6240 SECRETARY PricewaterhouseCoopers LLP Fax 818-342-0944 350 S Grand Ave., Ste 200 [email protected] Los Angeles, CA 90071-3436 _________________________________________________________________________________________________________

Forensic Services Section Business Valuation Section

2014-2016 Position

Daniel Ross Tel. 650-875-1040 CHAIR Daniel J. Ross, CPA Fax 650-875-1666 600 El Camino Real, Ste 101 [email protected] San Bruno, CA 94066-3569 Ted Collins Tel. 626-857-7300 VICE CHAIR Vincenti Lloyd & Stutzman LLP Fax 626-857-7302 2210 E Route 66 Ste 100 [email protected] Glendora, CA 91740-4676 Lynda Schauer Tel. 818-898-9911 TREASURER Miod and Company LLP Fax 818-898-9922 27200 Tourney Road, Ste 290 [email protected] Valencia, CA 91355 Megan Thompson Tel. 408-247-5253 (105) SECRETARY Thompson Accounting Fax 408-247-5795 1783 Hester Ave [email protected] San Jose, CA 95128 _________________________________________________________________________________________________________

5

mailto:[email protected]









_________________________________________________________________________________________________________

Forensic Services Section Economic Damages Section

2014-2016

Position

Haley J Eckhart Tel. 213-576-1819 CHAIR Freeman & Mills Inc Fax 213-620-9564 350 S Figueroa St Ste 900 [email protected] Los Angeles CA 90071-1305 Travis Armstrong Tel. 415-836-4035 VICE CHAIR Hemming Morse LLP Fax 415-777-2062 101 Montgomery St Ste 1400 [email protected] San Francisco, CA 94104-4028 Tim Sherman Tel. 323-229-9175 SECRETARY LitiNomics, Inc [email protected] 444 S Flower St Ste 2140 Los Angeles, CA 90071

Suzanne Thompson Tel. 415-692-6364 TREASURER TM Financial Forensics LLC Fax 415-391-7251 353 Sacramento St 22 Fl [email protected] San Francisco, CA 94111-3648

__________________________________________________________________________________________________________

Forensic Services Section Family Law Section

2014-2016

Position

Mike Radakovich Tel. 805-544-1557 CHAIR Radakovich Shaw & Blythe LLP Fax 805-544-1573 3220 S. Higuera St., Ste 201 [email protected] San Luis Obispo, CA 93401-6988 Charles Burak Tel. 925-945-7722 VICE CHAIR Glenn & Burak, LLP Fax 925-932-1491 323 Lennon Ln Fl 1 [email protected] Walnut Creek, CA 94598-2497 Lorna A. Mouton Riff Tel. 310-550-7477 SECRETARY Jaffe & Clemens Fax 310-271-8313 433 N. Camden Dr., Ste. 1000 [email protected] Beverly Hills, CA 90210-4414 Darlene Elmore Tel. 707-523-3540 TREASURER Darlene Lynn Elmore CPA ABV Fax 707-523-3541 384 Tesconi Ct [email protected] Santa Rosa, CA 95401-4653 _________________________________________________________________________________________________________

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_________________________________________________________________________________________________________

Forensic Services Sections Fraud Section

2014-2016

Position

Coral M. Hansen Tel. 213-220-7143 CHAIR CBIZ & Mayer Hoffman McCann PC Fax 866-700-2955 300 Esplanade, 2nd Floor [email protected] Oxnard, CA 93032-0908 David Callaghan Tel. 213-222-0882 VICE CHAIR

LitiNomics, Inc [email protected] 444 S Flower St Ste 2140 Los Angeles, CA 90071 Annette M. Stalker Tel. 916-710-8333 SECRETARY Stalker Forensics [email protected] TREASURER 4120 Douglas Blvd Ste 306-117 Granite Bay, CA 95746-5936 _________________________________________________________________________________________________________

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FORENSIC SERVICES SECTION ROSTER

First Middle Last E-Mail Organization Name Org Address Org City, State, Zip Phone Assoc Reg BV ED FL FR

William A Adams [email protected] William A. Adams, Jr., CPA Accountancy Corporation 3435 Wilshire Blvd Ste 1000 Los Angeles, CA 90010-1911 (213)388-6448 1 1 1 1 1

Richard S Barnes [email protected] Barnes Consulting 3600 American River Dr Ste 149 Sacramento, CA 95864-5921 (916)481-1500 (100) 1 1 1 1

William Allen Blee [email protected] William A. Blee, A/C 3991 Ohio St San Diego, CA 92104 (619)692-4172 1 1 1 1 1

Barry Charles [email protected] Charles Blank & Karp LLP 16501 Ventura Blvd Ste 510 Encino, CA 91436-2070 (818)377-3300 1 1 1 1 1

Dennis Duane Diver [email protected] Dennis D Diver & Associates 1638 Huntoon St Ste A Oroville, CA 95965-4909 (530)534-9300 1 1

Dennis Frankeberger [email protected] Frankeberger Vausher & Co 15325 Fairfield Ranch Rd Ste 180 Chino Hills, CA 91709-8853 (909)597-1100 1 1 1 1 1

Steven Martin Franklin [email protected] CBIZ Inc & Mayer Hoffman McCann PC 10474 Santa Monica Blvd Ste 200 Los Angeles, CA 90025-6930 (310)268-2002 1 1 1

Thomas Michael Gilbert [email protected] Gilbert Associates, Inc., CPAs and Advisors 2880 Gateway Oaks Dr Ste 100 Sacramento, CA 95833-4329 (916)646-6464 (102) 1 1 1

Donald A Glenn [email protected] Glenn & Burak, LLP 323 Lennon Ln Fl 1 Walnut Creek, CA 94598-2497 (925)945-7722 1 1 1 1 1

Martin G Laffer [email protected] Laffer & Gottlieb 9454 Wilshire Blvd Ste 920 Beverly Hills, CA 90212-2911 (310)274-7600 1 1 1

Robert Wendell Logan [email protected] Robert Logan CPA 9309 Benzon Dr Pleasanton, CA 94588-4767 (925)737-0430 1 1

Daniel M McGilloway [email protected] McGilloway, Ray, Brown & Kaufman Accountants and Consultants 2511 Garden Rd Ste A180 Monterey, CA 93940-5381 (831)373-3337 1 1 1 1

William Joseph Michiels [email protected] (818)832-9232 1 1 1 1

William Samuel Morgan [email protected] White Nelson Diehl Evans LLP 2875 Michelle Ste 300 Irvine, CA 92606-1020 (714)978-1300 (211) 1 1

Steven Barry Garelick [email protected] Lorch & Company 370 N Westlake Blvd Ste 100 Westlake Village, CA 91362-7039 (805)496-4330 1 1 1 1 1

Robert Winsby Peck [email protected] Robert W Peck An Acctcy Corp 1442 Irvine Blvd Ste 201 Tustin, CA 92780-3846 (714)832-4420 1 1 1

Clifford L Pike [email protected] Clifford Pike CPA 12 Westridge Newport Beach, CA 92660-9007 (949)433-6354 1 1

Duane Clayton Roemmich [email protected] Roemmich Accountancy Corp. 1500 Newell Ave Ste 401 Walnut Creek, CA 94596-5191 (925)945-0400 1 1 1

Bruce Lorne Ross [email protected] Bruce L Ross & Company 609 Deep Valley Dr Ste 390 Rolling Hills Estate, CA 90274-3691 (310)544-8881 1 1 1 1 1

John Michael Sboto [email protected] KSG Forensic & Investigative Services Inc 811 Wilshire Blvd Ste 1650 Los Angeles, CA 90017-2666 (213)489-9080 1 1 1

Mark R. Schaim [email protected] Schaim Hyde & Co 5151 Shoreham Pl Ste 105 San Diego, CA 92122-5939 (760)294-7080 1 1 1 1 1

George M Schofield [email protected] George M Schofield Co 1637 Lincoln Ave Napa, CA 94558-4807 (707)224-3350 1 1 1 1 1

Vincent J Shannon [email protected] Vincent J Shannon 199 1st St Ste 350 Los Altos, CA 94022-2768 (650)941-6492 1 1 1 1 1

Henry Stotsenberg [email protected] Stotsenberg Consulting 40730 Calle Bandido Murrieta, CA 92562-9235 (951)461-2042 1 1 1

Michael G Ueltzen [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1

Ronald S Greene [email protected] Gumbiner Savett Inc CPAs & Business Advisors 1723 Cloverfield Blvd Santa Monica, CA 90404-4007 (310)460-1164 1 1 1

Dennis A Pearson [email protected] Dennis Pearson, CPA 1901 Camino Vida Roble Ste 208 Carlsbad, CA 92008-6561 (760)431-8300 1 1 1 1 1

Hugh Edward Sills [email protected] Hugh E Sills CPA 6080 Center Dr 6th Fl Los Angeles, CA 90045 (310)338-0888 1 1 1 1 1

Lesley D Hand [email protected] (415)717-2783 1 1 1

Stuart H Harden [email protected] Hemming Morse LLP 7111 N Fresno St Ste 200 Fresno, CA 93720-2959 (559)440-0575 1 1 1

Charles F Schreiber [email protected] Charles F Schreiber Jr CPA 150 N Wiget Ln Ste 110 Walnut Creek, CA 94598-2411 (925)932-3443 1 1 1 1 1

John Douglas Moyle [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1

Dorian M Aiello [email protected] Aiello Goodrich & Teuscher, A. A. C 205 N Mount Shasta Blvd Ste 300 Mount Shasta, CA 96067-2902 (530)926-3881 1 1 1 1 1

Steven C Gabrielson [email protected] Haynie & Company CPAs 4910 Campus Dr Newport Beach, CA 92660-2119 (949)724-1880 1 1 1 1

Gregory A Kaseno [email protected] Brodshatzer Wallace Spoon Yip APC 555 W Beech St Ste 400 San Diego, CA 92101-2984 (619)234-4173 1 1 1 1 1

Barbara J Gottlieb [email protected] Laffer & Gottlieb 9454 Wilshire Blvd Ste 920 Beverly Hills, CA 90212-2911 (310)274-7600 1 1 1

Barbara C Luna [email protected] White Zuckerman Warsavsky Luna Hunt LLP 15490 Ventura Blvd #300 Sherman Oaks, CA 91403 (818)981-4226 1 1 1 1

Ronald L Durkin [email protected] CliftonLarsonAllen 915 Wilshire Blvd Ste 2250 Los Angeles, CA 90017-3562 (213)236-3232 1 1

Stephen M Zamucen [email protected] Zamucen & Curren 17848 Sky Park Cir Ste C Irvine, CA 92614-6135 (949)955-2522 1 1 1 1 1

Anne Virginia Renna [email protected] Anne Virginia Renna, CPA 1154 Centinela Ave Santa Monica, CA 90403-2342 (310)829-0378 1 1 1

Michael C Berg [email protected] PMB Helin Donovan 505 Sansome St Ste 850 San Francisco, CA 94111-3114 (415)515-4090 1 1 1 1 1

Paul Edward Quinn [email protected] Ryan, Christie, Quinn & Horn 575 E Locust Ave Ste 102 Fresno, CA 93720-2928 (559)438-8700 1 1 1 1 1

Michael John Krycler [email protected] Krycler Ervin Taubman & Kaminsky, AAC 15303 Ventura Blvd Ste 1040 Sherman Oaks, CA 91403-5805 (818)995-1040 1 1 1 1 1

Maryan M Ackley [email protected] (650)854-7709 1 1 1 1 1

Susan P Bleecker [email protected] Susan P. Bleecker CPA 180 S Lake Ave Ste 410 Pasadena, CA 91101-4767 (626)449-9151 1 1 1

Donna Witeby Close [email protected] EDR Valuations, Inc 777 So Hwy 101 Suite 201 Solana Beach , CA 92075-2624 (858)792-6800 1 1 1 1 1

Rosemarie Ebey Reed [email protected] (805)492-4888 1 1

Diana Graciela Lesgart [email protected] Diana G Lesgart CPA 22024 Lassen St Ste 106 Chatsworth, CA 91311-8331 (818)886-7140 1 1 1

Henry Charles Levy [email protected] Henry C. Levy & Company, CPAs & Consultants 5940 College Ave Ste F Oakland, CA 94618-1385 (510)652-1000 (305) 1 1 1 1 1

Andrew M Mintzer [email protected] Hemming Morse LLP 660 S Figueroa St Ste 1150 Los Angeles, CA 90017-3424 (213)228-8184 1 1

Terry Meador Hargrave [email protected] Hargrave & Hargrave CPAs 12121 Wilshire Blvd Ste 700 Los Angeles, CA 90025-1168 (310)576-1090 1 1 1 1 1

David Thomas Shomaker [email protected] Haynie & Company CPAs 4910 Campus Dr Newport Beach, CA 92660-2119 (949)724-1880 1 1 1

Keith C Stoneking [email protected] Stoneking, CPA & Mediation Services PO Box 1151 Sausalito, CA 94966-1151 (415)332-3064 1 1 1 1

Avram Seth Tucker [email protected] TM Financial Forensics LLC 353 Sacramento St 22 Fl San Francisco, CA 94111-3648 (415)692-6355 1 1 1 1

Theodore Gilbert Phelps [email protected] PCG Consultants PO Box 220789 Newhall, CA 91322 (208)806-0760 1 1 1 1 1

Brian A Sullivan [email protected] McLean Group LLC 177 Bovet Rd Ste 600 San Mateo, CA 94402-3122 (650)638-2310 1 1 1 1

Raymond A Jee [email protected] (510)299-9897 1 1 1 1

Archibald M Sam [email protected] Archibald M Sam & Co CPAs 500 Sansome St Ste 502 San Francisco, CA 94111-3221 (415)533-8773 1 1 1

Susan K Thompson [email protected] Hemming Morse LLP 7111 N Fresno St Ste 200 Fresno, CA 93720-2959 (559)440-0575 1 1 1

Karen Johnson Kaseno [email protected] Kaseno CPA Firm APC 12707 High Bluff Dr Ste 200 San Diego, CA 92130-2037 (760)753-7515 1 1 1 1 1

David S Cantor [email protected] (480)620-8486 1 1 1 1 1

William R Ackerman [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)576-1808 1 1 1

Lisa Marie Jolicoeur [email protected] Jolicoeur & Associates 3929 24th Street San Francisco, CA 94114 (415)321-4933 1 1 1 1 1

Kelley Patrick Bollinger [email protected] Bollinger Accountancy APC 111 Santa Rosa Ave Ste 400 Santa Rosa, CA 95404-4946 (707)526-2624 (225) 1 1 1 1 1

Fred S Rey [email protected] Seiler LLP 3 Lagoon Dr Ste 400 Redwood City, CA 94065-5157 (650)365-4646 1 1 1 1 1

Maryellen K. Sebold [email protected] BDO USA LLP 1888 Century Park E 4th Fl Los Angeles, CA 90067-1708 (310)203-1268 1 1 1 1

Bruce Kolbrenner [email protected] Bruce Kolbrenner & Co, Inc 12100 Wilshire Blvd Ste 550 Los Angeles, CA 90025-7142 (310)820-1201 1 1 1 1 1

Lisa Lea Troe [email protected] Athena Advisors LLC 3905 Courtside Ln Las Vegas, NV 89108-5379 (702)966-0200 1 1 1 1 1

Peter A Salomon [email protected] Hemming Morse LLP 660 S Figueroa St Ste 1150 Los Angeles, CA 90017-3424 (213)228-8186 1 1 1

Jeff A Stegner [email protected] Armanino LLP 12657 Alcosta Blvd Ste 500 San Ramon, CA 94583-4600 (925)790-2692 1 1 1 1 1

Sandra Emiko Hongo [email protected] (916)705-1012 1 1 1

Leslie O Dawson [email protected] Dawson CPA Firm 1600 S Main St Ste 385 Walnut Creek, CA 94596-5340 (925)933-5577 1 1 1 1 1

Maree T Gannaway [email protected] Maree T Gannaway, CPA 220 Montgomery St Ste 1029 San Francisco, CA 94104-3434 (510)866-6816 1 1 1 1 1

Peter Dinauer [email protected] (818)807-8874 1 1 1 1 1

William Scott Mowrey [email protected] CMM, LLP 5700 Canoga Ave Ste 300 Woodland Hills, CA 91367-6572 (818)986-5070 1 1 1 1 1

Daniel W Ray [email protected] Hemming Morse LLP 1340 Treat Blvd Ste 209 Walnut Creek, CA 94597-2101 (415)836-4046 1 1

Kim Joseph Onisko [email protected] Onisko & Scholz LLP 5000 E Spring St Ste 200 Long Beach, CA 90815-5215 (562)420-3100 1 1 1 1

David Brian Connelly [email protected] Berkeley Research Group, LLC 2049 Century Park East, Suite 2525 Los Angeles, CA 90067-3225 (310)499-4750 1 1

Michael Spindler [email protected] Navigant Consulting Inc One California Plaza Los Angeles, CA 90071-3139 (213)452-4538 1 1 1 1

David William Roberts [email protected] Crowe Horwath LLP 15233 Ventura Blvd Fl 9 Sherman Oaks, CA 91403-2250 (818)325-8487 1 1 1

Kurt Harold Stake [email protected] SingerLewak LLP 2050 Main St Fl 7 Irvine, CA 92614-8255 (949)261-8600 (1410) 1 1 1 1 1

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Kristina Bernice Conti [email protected] Aalfs Evans & Company, LLP 104 D St Eureka, CA 95501-0470 (707)444-8242 1 1 1 1 1

Craig Michael Enos [email protected] Enos Forensics 1024 Iron Point Rd Folsom, CA 95630-8013 (916)357-6750 1 1 1 1

Maria R Fergus [email protected] Tamiyasu Smith Horn and Braun APC 1991 N Gateway Blvd Fresno, CA 93727-1605 (559)252-8585 1 1 1 1 1

Omid K Yazdi [email protected] KPMG LLP 550 S Hope St Ste 1500 Los Angeles, CA 90071-2629 (213)430-2119 1 1 1 1 1

Jeffrey Thomas Rhodes [email protected] KPMG LLP 55 2Nd St Ste 1400 San Francisco, CA 94105-4534 (415)963-7050 1 1 1

Reagan Wade [email protected] Reagan S Wade CPA 148 Metairie Place San Ramon, CA 94583 (925)828-0434 1 1 1 1 1

Patrick M. DeLangis [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1 1 1

Haley Jo Eckhart [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)576-1819 1 1 1

Peter William Brown [email protected] PricewaterhouseCoopers LLP 601 S Figueroa St Los Angeles, CA 90017-5704 (213)356-6240 1 1 1

Eileen Marie Pastenieks [email protected] Pastenieks Bucheli & Falasco LLP 1301 L St Ste 1 Modesto, CA 95354-0936 (209)529-5515 1 1 1

Thomas David Collins [email protected] Thomas D Collins 3600 American River Dr Ste 147 Sacramento, CA 95864 (916)756-5622 1 1 1 1 1

Jeffrey Albert Mallan [email protected] Mallan & Associates PO Box 601 San Rosa, CA 95402-0601 (707)889-1464 1 1 1

Tabitha T Gaustad [email protected] KPMG LLP Mission Towers 1 Santa Clara, CA 95054 (650)404-4012 1 1 1

Jennifer Elaine Ziegler [email protected] Berkeley Research Group, LLC 2049 Century Park East, Suite 2525 Los Angeles, CA 90067-3225 (310)499-4853 1 1 1

James Phillip Richardson [email protected] James P Richardson CPA Inc, AC 325 11th St Richmond, CA 94801 (510)559-0347 1 1 1 1 1

B Marie Ebersbacher [email protected] CBIZ Inc & Mayer Hoffman McCann PC 10474 Santa Monica Blvd Ste 200 Los Angeles, CA 90025-6930 (310)268-2076 1 1 1 1 1

Greg Joseph Regan [email protected] Hemming Morse LLP 155 Bovet Rd Ste 600 San Mateo, CA 94402-3143 (415)836-4034 1 1 1

Brian S Repucci [email protected] Hemming Morse LLP 7111 N Fresno St Ste 200 Fresno, CA 93720-2959 (559)440-0579 1 1 1 1

Lori D Everett [email protected] Dawson CPA Firm 1600 S Main St Ste 385 Walnut Creek, CA 94596-5340 (925)933-5577 1 1 1 1 1

Victor Marker [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)691-1804 1 1 1 1 1

Yvonne Yafang Bao [email protected] Oakwood Worldwide 2222 Corinth Ave Los Angeles, CA 90064-1602 (310)210-6084 1 1 1 1 1

Kimberly Michele Alvarado [email protected] CBIZ Inc & Mayer Hoffman McCann PC 5060 California Ave Ste 800 Bakersfield, CA 93309-0731 (661)616-3734 1 1 1 1 1

Coral Michelle Hansen [email protected] CBIZ Inc & Mayer Hoffman McCann PC 300 Esplanade Dr Ste 250 Oxnard, CA 93036-0271 (805)988-3222 1 1 1

Jolene N Fraser [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1

Robert A MacBurney [email protected] Robert MacBurney PO BOX 3357 Covina, CA 91722-5357 (626)859-3444 1 1 1 1 1

David Wilcox Callaghan [email protected] LitiNomics, Inc 444 S Flower St Ste 2140 Los Angeles, CA 90071 (213)222-0882 1 1 1

John H Reith [email protected] Reith Company 924 S Oakland Ave # 200 Pasadena, CA 91106-3727 (626)440-1820 1 1 1 1 1

Charlotte King Reith [email protected] Reith Company 924 S Oakland Ave # 200 Pasadena, CA 91106-3727 (626)440-1820 1 1 1 1

John Marcus Lacey [email protected] California State Univ, Long Beach, College of Business Administration 1250 N Bellflower Blvd Long Beach, CA 90840-0004 (562)985-4576 1 1 1 1

John P Barrett [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1 1 1

Conrad Mulder Davis [email protected] Crowe Horwath LLP 400 Capitol Mall Ste 1400 Sacramento, CA 95814-4498 (916)492-5150 1 1 1

Harold Cord Nuoffer [email protected] Marsh Risk Consulting 777 S Figueroa St Ste 2200 Los Angeles, CA 90017-5820 (213)346-5567 1 1 1 1 1

Jodie Michelle Rolih [email protected] Morse Wittwer Sampson, LLP 265 E River Park Cir Ste 110 Fresno, CA 93720-1576 (559)389-5700 (5634) 1 1 1

Robert Warren Laversin [email protected] American Business Appraisers 3800 Blackhawk Rd Ste 140 Danville, CA 94506-4650 (925)964-0370 (2) 1 1 1 1 1

Laurence Allen Mills [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)620-9535 1 1 1

Tim Bryan [email protected] Crowe Horwath LLP 400 Capitol Mall Ste 1400 Sacramento, CA 95814-4498 (916)492-5153 1 1 1 1

Max Paul Liphart [email protected] PCG Consultants 915 Wilshire Blvd Ste 1920 Los Angeles, CA 90017-3448 (310)625-4251 1 1 1 1 1

Abraham Z Reichman [email protected] Frankel and Reichman LLP 6420 Wilshire Blvd Ste 860 Los Angeles, CA 90048-5549 (323)549-2160 1 1 1 1 1

Andrew Max Hornichter [email protected] CBIZ Inc & Mayer Hoffman McCann PC 10474 Santa Monica Blvd Ste 200 Los Angeles, CA 90025-6930 (310)268-2724 1 1 1 1 1

Heather Marie Lyons [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 (128) 1 1 1 1 1

Kenneth David Rugeti [email protected] Rugeti & Associates PC 29122 Rancho Viejo Rd Ste 114 San Juan Capistrano, CA 92675-1020 (949)485-4054 1 1 1

Melissa Kasarjian [email protected] Kasarjian and Company CPA's 1540 Marsh St Ste 220 San Luis Obispo, CA 93401-2983 1 1 1 1 1

Jennifer L Osborne [email protected] Vicenti Lloyd & Stutzman LLP 2210 E Route 66 Ste 100 Glendora, CA 91740-4676 (626)857-7300 1 1 1 1 1

Joshua Randall Teeple [email protected] (949)381-5656 1 1 1 1 1

Louis Anthony Bohorquez [email protected] CliftonLarsonAllen 915 Wilshire Blvd Ste 2250 Los Angeles, CA 90017-3562 (213)236-3237 1 1 1

Charlene Anne Podlipna [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)620-9535 (834) 1 1 1

Jeffery D Porter [email protected] Jeff Porter CPA 16885 W Bernardo Dr Ste 260 San Diego, CA 92127-1666 (858)485-5587 1 1 1 1 1

Ruslan Magidov [email protected] Magidov CPA Firm 7270 Hillside Ave Ste 101 Los Angeles, CA 90046-2363 (323)447-0814 1 1 1 1 1

Wilfred W Hanson [email protected] 1 1 1 1 1

Kathryn Ann Johnson [email protected] CPA Forensics Plus 363 W 6th St San Bernardino, CA 92401-1128 (909)889-8819 1 1 1 1 1

Fausta M Shuler [email protected] Hemming Morse LLP 155 Bovet Rd Ste 600 San Mateo, CA 94402-3143 (415)836-4087 1 1

David Keith Gottlieb [email protected] Crowe Horwath LLP 15233 Ventura Blvd Fl 9 Sherman Oaks, CA 91403-2250 (818)325-8415 1 1 1 1 1

Annette M Stalker [email protected] Stalker Forensics 4120 Douglas Blvd Ste 306-117 Granite Bay, CA 95746-5936 (916)710-8333 1 1 1 1

Barbara R Simonich [email protected] Barbara R Simonich CPA 10 Harris Ct Ste B3 Monterey, CA 93940-5739 (831)375-7779 1 1 1 1 1

James B Hunt [email protected] James B Hunt CPA 4020 Palos Verdes Dr N Ste 1000 Rolling Hills Estates, CA 90274-2525 (310)377-6813 1 1 1 1 1

Leonard Henry Lyons [email protected] Pun & McGeady LLP 9 Corporate Park, Suite 130 Irvine, CA 92606-5172 (949)466-7842 1 1 1 1 1

Robin Rohan Burk [email protected] (714)832-6374 1 1 1 1 1

Lori L Payne [email protected] Payne Financial Forensics 4100 Guardian St Ste 250 Simi Valley, CA 93063 (805)210-7700 1 1 1

Lisa Bracken [email protected] Skorheim & Associates, AAC 28202 Cabot Rd Ste 300 Laguna Niguel, CA 92677-1249 (949)365-5680 1 1 1

Reuben Davis Taylor [email protected] Public Company Accounting Oversight Board 1666 K Street NW Ste 800 Washington, DC 20006-2803 (202)591-4709 1 1 1

Joseph R Rosenbaum [email protected] Rosenbaum & Co. 12 Quail Crossing Moraga, CA 94556 (415)307-9543 1 1 1

Brian Y Lopez [email protected] CliftonLarsonAllen 915 Wilshire Blvd Ste 2250 Los Angeles, CA 90017-3562 (213)236-3234 1 1

Elaine E White [email protected] Criterium Consulting Group Inc 27412 Aliso Creek Road Aliso Viejo, CA 92656 (949)387-9400 (245) 1 1 1 1 1

Ramona Ruth Farrell [email protected] Ueltzen & Company LLP 3600 American River Dr Ste 150 Sacramento, CA 95864-5950 (916)563-7790 1 1 1

Samuel Basil Daniels [email protected] 4504457416 1 1 1

Jeremy Calabro [email protected] Dawson CPA Firm 1600 S Main St Ste 385 Walnut Creek, CA 94596-5340 (925)933-5577 1 1 1 1 1

Sacha Zadmehran [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)836-4073 1 1 1 1 1

Lorraine Susan Aho [email protected] Aho + Associates 710 W Napa St Ste 3 Sonoma, CA 95476-6408 (707)307-3476 1 1 1 1 1

Christopher G Carmona [email protected] Laffer & Gottlieb 9454 Wilshire Blvd Ste 920 Beverly Hills, CA 90212-2911 (310)274-7600 1 1 1 1 1

Katherine L Hunt [email protected] CBIZ Inc & Mayer Hoffman McCann PC 10474 Santa Monica Blvd Ste 200 Los Angeles, CA 90025-6930 (310)268-2000 1 1 1 1

Bridget Ann Sanders [email protected] Bridget A. Sanders Consulting 2201 Francisco Dr., Ste. 140-237 El Dorado Hills, CA 95762 (916)599-1651 1 1 1 1 1

Jason J Brancazio [email protected] Bruce L Ross & Company 609 Deep Valley Dr Ste 390 Rolling Hills Estate, CA 90274-3691 (310)544-8881 1 1 1 1

Patrick C Matchell [email protected] Crowe Horwath LLP 400 Capitol Mall Ste 1400 Sacramento, CA 95814-4498 (916)441-1000 1 1 1 1 1

Lynda Schauer [email protected] Miod and Company LLP 27200 Tourney Road, Ste 290 Valencia, CA 91355 (818)898-9911 1 1 1 1 1

Bronwyn R Gillespie [email protected] Crowe Horwath LLP 400 Capitol Mall Ste 1400 Sacramento, CA 95814-4498 (916)441-1000 1 1 1 1 1

Travis Paul Armstrong [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)836-4035 1 1 1 1 1

Steven Boyles [email protected] Hemming Morse LLP 1340 Treat Blvd Ste 209 Walnut Creek, CA 94597-2101 (415)836-4000 1 1 1 1 1

Jeremy Salvador [email protected] Miod and Company LLP 27200 Tourney Road, Ste 290 Valencia, CA 91355 (818)898-9911 1 1 1 1 1

Katrina Louise Carrizales [email protected] PricewaterhouseCoopers LLP 601 S Figueroa St Los Angeles, CA 90017-5704 (213)356-6000 1 1 1 1 1

Keaton Edward Young [email protected] Crowe Horwath LLP 400 Capitol Mall Ste 1400 Sacramento, CA 95814-4498 (559)917-9877 1 1 1 1 1

Phuong Thuy Nguyen [email protected] CliftonLarsonAllen 915 Wilshire Blvd Ste 2250 Los Angeles, CA 90017-3562 (213)236-3231 1 1 1 1

James Lawrence Miser [email protected] James L Miser, CPE, CFE (559)960-5641 1 1 1 1 1

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Charles H DeLacey [email protected] DeLacey Riebel Family Law Group, LLP (415)528-7000 1 1 1 1 1

Jared Tonks [email protected] Wholesale Fuels, Inc PO BOX 82277 Bakersfield, CA 93380-2277 (661)395-6111 1 1 1 1 1

Chia-Yueh Suen [email protected] Berkeley Research Group, LLC 2049 Century Park East, Suite 2525 Los Angeles, CA 90067-3225 (310)499-4834 1 1 1 1 1

Hossein A Faridzadeh [email protected] (310)796-6852 1 1 1 1 1

Justin P. Hibbard [email protected] BridgeView CFO Solutions LLC 1 Ferry Building Ste 255 San Francisco, CA 94111-4243 (415)254-1897 1 1 1 1 1

Sidra Fareed [email protected] Heberger & Co, Inc 5090 N Fruit Ave Ste 102 Fresno, CA 93711-3064 (559)227-9772 1 1 1 1 1

Peggy Chiang [email protected] Tiret & Co CPAs PC 1250 Bayhill Dr Ste 100 San Bruno, CA 94066-3079 (415)516-8700 1 1 1 1 1

Clint Alan Herndon [email protected] Balarsky & Associates, CPAs 6920 Fair Oaks Blvd Ste 205 Carmichael, CA 95608-3361 (916)921-2600 1 1 1

Jacqueline A Smart [email protected] SingerLewak LLP 2050 Main St Fl 7 Irvine, CA 92614-8255 (949)261-8600 1 1 1 1 1

Stephanie A Hackett [email protected] (619)757-6905 1 1 1 1 1

Matthew S Raab [email protected] Golbahar Consulting Group 9454 Wilshire Blvd Ste 550 Beverly Hills, CA 90212-2905 (310)927-4158 1 1 1 1 1

Paul Edward Lerandeau [email protected] Lerandeau & Lerandeau LLP (559)230-2600 1 1 1 1 1

Darci Renee Keyes [email protected] (916)837-8774 1 1 1 1 1

Shane Read [email protected] Hargrave & Hargrave CPAs 12121 Wilshire Blvd Ste 700 Los Angeles, CA 90025-1168 (310)576-1090 1 1 1 1 1

Douglas Aguilera [email protected] (408)655-9900 1 1 1 1 1

Bereniss Dowson [email protected] (909)936-9899 1 1 1 1 1

Roberto Toscano [email protected] (323)369-2003 1 1 1 1 1

Matthew Bodziak [email protected] (562)343-3154 1 1 1 1

Koria C. January [email protected] CPA Forensics Plus 363 W 6th St San Bernardino, CA 92401-1128 (909)889-8819 1 1 1 1

Mayuran Kularajan [email protected] (310)738-9089 1 1 1 1 1

Michelle Abeson [email protected] ABVS 3848 W Carson St Ste 212 Torrance, CA 90503-6718 (310)707-8858 1 1 1 1 1

Eric D Cross [email protected] (951)239-6401 1 1 1 1 1

Wilfred Jay Rivera [email protected] (714)343-7267 1 1 1 1 1

Laurinda Guo [email protected] (626)231-1249 1 1 1

Jennifer Beaudoin [email protected] PricewaterhouseCoopers LLP 601 S Figueroa St Los Angeles, CA 90017-5704 (617)435-9342 1 1 1 1

Karina Armendariz [email protected] (714)371-6835 1 1 1 1 1

Lorenzo Gomez [email protected] (805)816-1896 1 1 1 1 1

Melissa Turriaga [email protected] (909)257-5186 1 1 1 1 1

Reeshemah Sabree [email protected] Tree Island Wire (USA), Inc. 4190 Santa Ana St Ontario, CA 91761-1527 (909)631-0737 1 1 1 1 1

Regina Galindo [email protected] (909)717-8137 1 1 1

Elisbeth Castaneda [email protected] (909)942-9445 1 1 1 1 1

Chatchai Charlie Rodnuson [email protected] (909)438-8010 1 1 1

Kenny Ali [email protected] (909)561-7909 1 1 1 1

TAWANDA KADZIRANGE [email protected] (925)529-0654 1 1 1 1 1

Ranjeeta Ty [email protected] (626)463-3627 1 1 1 1

Martin Guardado Paz [email protected] (909)560-7390 1 1

Cynthia Lujan [email protected] (909)573-6937 1 1 1 1 1

Yuliya Kazakevich [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (267)984-1953 1 1 1 1 1

Sarah Shotwell [email protected] (562)456-7458 1 1 1 1 1

Miroslava Lopez [email protected] (909)355-2039 1 1 1 1 1

Arturo Franco [email protected] (909)275-0625 1 1 1 1 1

James A Andersen [email protected] Hemming Morse LLP 1101 College Ave Ste 140 Santa Rosa, CA 95404-3966 (707)535-0924 1 1 1 1

Noel H Applebaum [email protected] (310)836-3555 1 1 1

James Dwight Cashion [email protected] Cashion Go & Company LLP 100 E Corson St Ste 200 Pasadena, CA 91103 (818)507-6926 1 1 1

Jack Lawrence Cornelius [email protected] Cornelius & Company Inc 1721 2nd St Ste 201 Sacramento, CA 95811-6222 (916)444-9868 1 1

David F Dichner [email protected] Zivetz, Schwartz & Saltsman, CPA's 11900 W Olympic Blvd Ste 650 Los Angeles, CA 90064-1046 (310)943-8573 1 1 1

Lionel Theodore Engelman [email protected] Engelman AC 520 S El Camino Real Ste 410 San Mateo, CA 94402-1717 (650)344-6525 (12) 1 1 1

Thomas Allen Gaebe [email protected] Vollmer Daniel Gaebe & Grove CPAs 100 Willow Plz Ste 400 Visalia, CA 93291-6236 (559)733-1051 1 1 1

Steven Ray Garner [email protected] Garner & Tyler, A/C 911 Chapala St Santa Barbara, CA 93101-3216 (805)963-3112 1 1 1

Charles William Helfrick [email protected] McCahan Helfrick Thiercof & Butera AC 1655 Willow St San Jose, CA 95125-5107 (408)266-4755 1 1 1 1

Ronald D Jeffery [email protected] Jeffery Corrigan & Shaw LLP 716 Corporate Center Dr Pomona, CA 91768-2652 (626)449-5789 1 1 1

Edward J McSweeney [email protected] McSweeney & Associates APC 350 Crown Point Cir Ste 200 Grass Valley, CA 95945-9525 (530)272-5555 1 1 1

Ronald Greg Pomares [email protected] Pomares Bearry A/C 555 Capitol Mall Ste 400 Sacramento, CA 95814-4503 (916)491-0400 1 1 1

Donald W Pyne [email protected] Pyne Waltrip Decker & McCoy LLP 1823 Knoll Dr Ventura, CA 93003-7321 (805)650-8310 1 1 1

Thomas W Rimerman [email protected] Frank, Rimerman + Co. LLP 899 Adams St Ste E St. Helena, CA 94574-1160 (707)942-0728 1 1

Lester J Schwartz [email protected] Zivetz, Schwartz & Saltsman, CPA's 11900 W Olympic Blvd Ste 650 Los Angeles, CA 90064-1046 (310)943-8576 1 1 1 1

James G Sheehy [email protected] James G Sheehy CPA 97 Barclay Ct Alamo, CA 94507-1744 (925)935-1500 1 1 1

David Susson [email protected] David H. Susson Accountancy Corporation PO Box 8068 Newport Beach, CA 92658 (949)760-1240 1 1 1

Ginita Wall [email protected] Ginita Wall, CPA, CFP 10863 Vereda Sol del Dios San Diego, CA 92130-8630 (858)792-0524 1 1

Michael Joseph Eggers [email protected] American Business Appraisers 3800 Blackhawk Rd Ste 140 Danville, CA 94506-4650 (925)964-0370 1 1 1 1

James P Braun [email protected] Tamiyasu Smith Horn and Braun APC 1991 N Gateway Blvd Fresno, CA 93727-1605 (559)252-8585 (107) 1 1

David Frankel [email protected] Frankel and Reichman, LLP 6420 Wilshire Blvd Ste 860 Los Angeles, CA 90048-5549 (310)271-2008 1 1 1

Gerald R Deller [email protected] Boss Deller & Co CPAs 1218 11th St Modesto, CA 95354-0702 (209)577-2547 1 1 1

Lynne Curtis Bushore [email protected] Lynne Curtis Bushore CPA APC 1801 E Tahquitz Canyon Way Ste 202 Palm Springs, CA 92262-7123 (760)325-9663 1 1 1

Michael Stephen Thompson [email protected] Thompson Accounting 1783 Hester Ave San Jose, CA 95128 (408)247-5253 1 1 1

James F Butera [email protected] McCahan Helfrick Thiercof & Butera AC 1655 Willow St San Jose, CA 95125-5107 (408)266-4755 1 1 1

Kenneth L Frank [email protected] Kenneth Frank Accountancy, APC 690 De Long Ave Ste 300 Novato, CA 94945 (415)892-1040 1 1 1 1

Connie Stone [email protected] Connie Stone CPA PO Box 1101 Grass Valley, CA 95945-1101 (530)273-6638 1 1 1

Lammert Van Laar [email protected] Kemper CPA Group LLP 3031 W March Ln Ste 133S Stockton, CA 95219-6578 (209)473-2001 1 1 1 1

Rebecca Eileen Alger [email protected] Rebecca Alger CPA 5421 Douglas Ln Sebastopol, CA 95472-2112 (707)887-7078 1 1 1

Joanne M Bertozzi [email protected] Jones Schiller & Co LLP 100 Drakes Landing Rd Ste 200 Greenbrae, CA 94904-3120 (415)771-5335 1 1 1

Clark L Savage [email protected] Savage & Lucido CPAs LLP 100 Clock Tower Pl Ste 230 Carmel, CA 93923-8775 (831)250-6706 1 1 1

Theodore D Israel [email protected] Eckhoff Accountancy Corp 145 N Redwood Dr San Rafael, CA 94903-1974 (415)499-9400 (107) 1 1 1

Stuart Earl Robken [email protected] (916)863-0788 1 1 1

Donald John Miod [email protected] Miod and Company LLP 27200 Tourney Road, Ste 290 Valencia, CA 91355 (818)898-9911 (100) 1 1 1

Robert G. Wallace [email protected] Wallace Valuation Advisors, Inc. 711 University Ave Sacramento, CA 95825-6708 (916)648-9838 1 1 1

Mike Radakovich [email protected] Radakovich Shaw & Blythe LLP 3220 S Higuera, Suite 201 San Luis Obispo, CA 93401 (805)544-1557 1 1 1

Carlos Carney [email protected] Carney & Associates 4000 Barranca Pkwy Ste 250 Irvine, CA 92604-1713 (949)262-3210 1 1 1 1

David Lowell Black [email protected] Black & Company Inc. 949 University Ave Ste 100 Sacramento, CA 95825-6728 (916)649-7696 1 1 1

Tony Yip [email protected] Brodshatzer Wallace Spoon Yip APC 555 W Beech St Ste 400 San Diego, CA 92101-2984 (619)234-4173 1 1 1 1

Nick G Tarlson [email protected] Tarlson & Associates 220 Sansome St Ste 900 San Francisco, CA 94104-2724 (415)956-5700 1 1 1

Alan S Goldman [email protected] Goldman & Knell CPAs LLP 1801 Century Park E Ste 2160 Los Angeles, CA 90067-2343 (310)556-2266 1 1

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Stephen Marc Reiss [email protected] (408)216-3458 1 1 1

Denis E Carrade [email protected] Perotti & Carrade CPAs 1100 Larkspur Landing Cir Ste 358 Larkspur, CA 94939-1880 (415)461-8500 1 1

Thomas E Benton [email protected] Burr Pilger Mayer Inc 110 Stony Point Rd Ste 210 Santa Rosa, CA 95401-4118 (707)544-4078 1 1 1

Cynthia E Davis [email protected] Davis & Davi, CPAs, APC PO BOX 2748 Monterey, CA 93942-2748 (831)649-1665 1 1 1

Roger E. Wilde [email protected] Anacapa Accountancy Corporation 228 W Carrillo St Ste D Santa Barbara, CA 93101-6157 (805)564-3000 1 1 1

Dennis A. Sperry [email protected] Sperry Bauer & Associates LLP 24411 Ridge Route Dr Ste 220 Laguna Hills, CA 92653-1698 (949)297-4800 1 1 1

Daniel J Ross [email protected] Daniel J. Ross, CPA 600 El Camino Real Ste 101 San Bruno, CA 94066-3569 (650)875-1040 1 1 1

Robert Allen Kosbie [email protected] Zainer Rinehart Clarke CPAs 3510 Unocal Pl Ste 350 Santa Rosa, CA 95403-5723 (707)525-1163 1 1 1 1

Stuart James Weil [email protected] Stuart J. Weil, CPA 235 Montgomery St Ste 942 San Francisco, CA 94104-3002 (415)983-0164 1 1 1

Lorna A Mouton Riff [email protected] Jaffe & Clemens 433 N Camden Dr Ste 1000 Beverly Hills, CA 90210-4414 (310)550-7477 1 1

Susan Carlisle [email protected] Susan Carlisle, CPA,Prof.Corp 21243 Ventura Blvd Ste 138 Woodland Hills, CA 91364-2124 (818)888-3223 1 1 1

William Frank Torres [email protected] Bill Torres & Company Inc 500 Citadel Dr Ste 330 Commerce, CA 90040-1572 (323)890-8180 1 1 1

Sheri L Billings [email protected] Summit Accountancy Group, Inc. 2425 Porter St Ste 14 Soquel, CA 95073-2454 (831)462-3238 1 1 1

Lorraine A Goyne [email protected] D H Scott & Co 900 Market St Ste D Redding, CA 96001-0500 (530)243-4300 1 1 1

David D Hutchings [email protected] David D Hutchings CPA 20665 4th St Ste 102 Saratoga, CA 95070-5899 (408)867-1272 1 1 1

Scott Decker [email protected] Pyne Waltrip Decker & McCoy LLP 1823 Knoll Dr Ventura, CA 93003-7321 (805)650-8310 1 1 1 1

Jeffrey H Kinrich [email protected] Analysis Group Inc 333 S Hope St Fl 27 Los Angeles, CA 90071-1406 (213)896-4544 1 1 1 1

Stuart D Allen [email protected] CMM, LLP 5700 Canoga Ave Ste 300 Woodland Hills, CA 91367-6572 (818)986-5070 1 1 1

Stephan Henry Wasserman [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 1 1 1

Mark S Luttrell [email protected] CBIZ Inc & Mayer Hoffman McCann PC 5060 California Ave Ste 800 Bakersfield, CA 93309-0731 (661)325-7500 1 1 1

Cynthia V. Craig [email protected] Cynthia V Craig CPA 708 Gravenstein Hwy N Ste 288 Sebastopol, CA 95472 (707)486-8046 1 1 1

Eileen Preville [email protected] Law Offices of Eileen Preville (510)893-4000 (100) 1 1

Kevin Eldon Daniel [email protected] Vollmer Daniel Gaebe & Grove CPAs 100 Willow Plz Ste 400 Visalia, CA 93291-6236 (559)733-1051 1 1 1

Nancy A Kearson [email protected] Nancy A Kearson CPA ABV CVA 1801 Century Park E Ste 2400 Los Angeles, CA 90067-2326 (310)785-9614 1 1 1

William A Duerksen [email protected] CBIZ Inc & Mayer Hoffman McCann PC 5060 California Ave Ste 800 Bakersfield, CA 93309-0731 (661)325-7500 1 1 1 1

Wayne D Lorch [email protected] Lorch & Company 370 N Westlake Blvd Ste 100 Westlake Village, CA 91362-7039 (805)496-4330 1 1 1

Jeffrey Scott Hunter [email protected] Hunter & Renfro LLP 455 Capitol Mall Ste 235 Sacramento, CA 95814-4409 (916)443-5670 1 1 1 1

Geoffrey Daniel Kramer [email protected] McMenomy & Richmond, CPAs, LLP 876 N. Mountain Ave Ste 105 Upland, CA 91786 (909)294-2350 1 1 1

Robert O Watts [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 1 1

David J Swan [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 (1777) 1 1 1

Ron J Anfuso [email protected] Ron J Anfuso CPA/ABV 1725 Via Coronel Palos Verdes Estates, CA 90274-2013 (310)378-6606 1 1

Darlene Lynn Elmore [email protected] Darlene Lynn Elmore CPA ABV 384 Tesconi Ct Santa Rosa, CA 95401-4653 (707)523-3540 1 1 1

Christopher F Whitaker [email protected] Whitaker & Associates 520 Capitol Mall Ste 600 Sacramento, CA 95814-4714 (916)446-8910 1 1 1

Kathleen Ruth Sims [email protected] Magnolia Group LLP 29 Hawthorne Los Altos, CA 94022 (650)559-8983 1 1

Tracy Farryl Katz [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 1 1

Randy Charles Renfro [email protected] Hunter & Renfro LLP 455 Capitol Mall Ste 235 Sacramento, CA 95814-4409 (916)443-5670 1 1 1 1

Jeffrey B Rizzo [email protected] (310)804-1973 1 1 1 1

Violet P Woodhouse [email protected] Violet P. Woodhouse APC (949)640-8861 1 1

Anthony S Cangelosi [email protected] Tedesco Appraisal & Valuation 2880 Santa Maria Way Ste D6 Santa Maria, CA 93455-7142 (805)934-8562 1 1 1

Jeffrey J Ersig [email protected] The Mangold Group, CPAs PC 1120 S Capital of Texas Highway, Ste 2-120 Austin, TX 78746 (512)327-0909 (210) 1 1 1

Keith C Bales [email protected] Black & Company Inc. 949 University Ave Ste 100 Sacramento, CA 95825-6728 (916)649-7696 1 1 1

Bret F Bauer [email protected] Sperry Bauer & Associates LLP 24411 Ridge Route Dr Ste 220 Laguna Hills, CA 92653-1698 (949)297-4800 1 1 1

John Michael Misuraca [email protected] Avalon Advisors Inc 25602 Alicia Pkwy #435 Laguna Hills, CA 92653-5309 (949)215-3408 1 1 1

Paul D Harms [email protected] Wallace Valuation Advisors, Inc. 711 University Ave Sacramento, CA 95825-6708 (916)648-9838 1 1 1

Ben C Towne [email protected] Towne Advisory Services (408)828-7749 1 1 1

Charles Anthony Burak [email protected] Glenn & Burak, LLP 323 Lennon Ln Fl 1 Walnut Creek, CA 94598-2497 (925)945-7722 1 1 1

Joseph Gavin Emanuele [email protected] Emanuele Valuation 29462 Elba Dr Laguna Niguel, CA 92677 (949)542-7249 1 1 1

Michelle Ria Ellis [email protected] Stoughton Davidson AC 2520 W Shaw Ln Ste 101 Fresno, CA 93711-2768 (559)436-1200 (610) 1 1 1

Hugh A Lipton [email protected] Lipton & Margolin (818)508-7100 1 1

Gayle F Barrett [email protected] Barrett Forensic Accounting & Valuation Services 10940 Wilshire Blvd Ste 1600 Pmb 580 Los Angeles, CA 90024-3910 (310)424-5151 1 1 1

Mark Daniel Close [email protected] EDR Valuations, Inc 777 So Hwy 101 Suite 201 Solana Beach , CA 92075-2624 (858)792-6800 1 1 1 1

H Les L Kornblatt [email protected] H. Les Kornblatt, CPA/ABV, CVA, CFF 78814 Palm Tree Ave Palm Desert, CA 92211-1846 (760)360-3303 1 1 1

Kristen Laura Gillespie [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 1 1

Denise M Frey [email protected] Eckhoff Accountancy Corp 145 N Redwood Dr San Rafael, CA 94903-1974 (415)499-9400 (104) 1 1 1

Megan Thompson [email protected] Thompson Accounting 1783 Hester Ave San Jose, CA 95128 (408)247-5253 (105) 1 1 1

Stephen James Wagner [email protected] Dick & Wagner (916)920-9504 1 1 1

Seth L Kaplan [email protected] Robert W Baird & Co (916)563-2010 1 1

Raquel Lin Sefton [email protected] (415)733-3974 1 1 1

Rui He [email protected] Engelman AC 520 S El Camino Real Ste 410 San Mateo, CA 94402-1717 (650)344-6525 (14) 1 1 1

Everett P Harry [email protected] Harry + Torchiana LLP 601 Montgomery St Ste 1208 San Francisco, CA 94111-2616 (415)981-9450 1 1

Dana Alan Basney [email protected] Univ of San Diego 5998 Alcala Park San Diego, CA 92110 (858)451-2756 1 1

Michael L Dever [email protected] Michael Dever CPA 609 S Grand Ave Ste 1106 Los Angeles, CA 90017-3848 (213)220-1313 1 1

Neill W Freeman [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)620-9535 1 1 1

William D Horsfall [email protected] Lucas Horsfall Murphy & Pindroh LLP 100 Corson St Ste 200 Pasadena, CA 91103-3841 (626)744-5100 1 1 1

Alan S Kennan [email protected] (310)503-8711 1 1

Clifford Kupperberg [email protected] Kupperberg & Associates, CPAs 505 Sansome St Ste 1501 San Francisco, CA 94111-3119 (415)217-7456 1 1 1

Patricia J Mensch [email protected] Macias Gini & O'Connell LLP 12264 El Camino Real Ste 402 San Diego, CA 92130-3063 (858)792-2210 1 1

Jerry E Randall [email protected] Jerry E. Randall CPA/ABV/CFF 1188 E High Ridge Dr Washington, UT 84780-8299 1 1

D Paul Regan [email protected] Hemming Morse LLP 155 Bovet Rd Ste 600 San Mateo, CA 94402-3143 (415)836-4047 1 1

Patrick L Stoll [email protected] Boyle & Stoll CPAs PC 3755 Brickway Blvd # 100 Santa Rosa, CA 95403-8272 (707)571-1951 1 1 1

Julie Plat [email protected] Freeman & Mills Inc 350 S Figueroa St Ste 900 Los Angeles, CA 90071-1305 (213)576-1818 1 1

Brian P Brinig [email protected] Brinig & Company Inc 401 B St Ste 2150 San Diego, CA 92101-4201 (619)687-2600 1 1 1

Robert F Hutchinson [email protected] Robert F Hutchinson CPA ABV 23245 Sylvan St # 103 Woodland Hills, CA 91367-1524 (818)888-8175 1 1 1

David L Hahn [email protected] Hahn Fife & Co LLP 22342 Avenida Empresa Ste 200 Rancho Santa Margarita, CA 92688-2148 (949)888-1010 1 1

Robert H Wallace [email protected] Brodshatzer Wallace Spoon Yip APC 555 W Beech St Ste 400 San Diego, CA 92101-2984 (619)234-4173 1 1

Theodore K. Mitchel [email protected] Sacramento City College 3835 Freeport Blvd Sacramento, CA 95822-1318 (916)704-8994 1 1 1

Joseph Michael Sullivan [email protected] Joseph M Sullivan CPA Inc 949 University Ave Ste 100 Sacramento, CA 95825-6728 (916)922-9594 1 1

Sabby Jonathan [email protected] Jonathan & Associates Inc 73301 Fred Waring Dr Ste 200 Palm Desert, CA 92260-2886 (760)341-6656 1 1

Vickie M Wolf [email protected] Brinig & Company Inc 401 B St Ste 2150 San Diego, CA 92101-4201 (619)687-2600 1 1

Deborah Smith Dickson [email protected] Smith Dickson AC 18100 Von Karman Ave Ste 420 Irvine, CA 92612-7194 (949)553-1020 1 1

Colin A Johns [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)836-4000 1 1

Ann Elizabeth Wilson [email protected] Ann E Wilson CPA 12707 High Bluff Dr Ste 200 San Diego, CA 92130-2037 (858)523-9360 1 1

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Michael Jefferson Richmond [email protected] McMenomy & Richmond, CPAs, LLP 876 N. Mountain Ave Ste 105 Upland, CA 91786 (909)294-2350 1 1

Roger B Shlonsky [email protected] (928)203-4444 1 1 1

Wesley L Nutten [email protected] Desmond Marcello & Amster 6060 Center Dr Ste 825 Los Angeles, CA 90045-1596 (310)216-1400 1 1 1

David A Grisham [email protected] Hemming Morse LLP 155 Bovet Rd Ste 600 San Mateo, CA 94402-3143 (415)836-4000 1 1

Bjorn Lennart Malmlund [email protected] Ernst & Young LLP 725 S Figueroa St Los Angeles, CA 90017-5524 (213)977-4344 1 1

Vernon R Bartle [email protected] Rogers & Co. 21790 Hesperian Blvd Hayward, CA 94541-7003 (510)782-0774 1 1 1

Karl J Schulze [email protected] Schulze Haynes Loevenguth & Co 660 S Figueroa St Ste 1280 Los Angeles, CA 90017-3453 (213)627-8280 1 1 1

Vanessa Jay Hill [email protected] Evidentia Consulting, LLP 1172 San Pablo Ave Ste 202 Berkeley, CA 94706-2110 (510)280-3847 1 1 1

Carlyn Irwin [email protected] Cornerstone Research 633 W 5Th St Fl 31St Los Angeles, CA 90071-2005 (213)553-2500 1 1 1

Christian Dale Tregillis [email protected] LitiNomics, Inc 444 S Flower St Ste 2140 Los Angeles, CA 90071 (213)222-0870 1 1 1

Edward V Collins [email protected] Vicenti Lloyd & Stutzman LLP 2210 E Route 66 Ste 100 Glendora, CA 91740-4676 (626)857-7300 1 1 1

Monica Ip [email protected] Evidentia Consulting, LLP 555 Veterans Blvd Ste 118 Redwood City, CA 94063-1145 (650)260-2212 1 1

Jed Kurt Greene [email protected] Five Corners Group 875 Fourth Street, Ste 5 San Rafael, CA 94901-3432 (415)508-3383 1 1

Christopher Brian Morse [email protected] Morse Wittwer Sampson, LLP 265 E River Park Cir Ste 110 Fresno, CA 93720-1576 (559)389-5700 1 1

Michael R Huhn [email protected] Jones Henle & Schunck 135 Town And Country Dr Danville, CA 94526-3924 (925)820-1821 1 1

Kevin Francis Henry [email protected] Freeman & Mills Inc (213)576-1816 1 1 1

John T Crissey [email protected] John T. Crissey, MBA, MS (626)355-1630 1 1 1

Gregory Allan McKinnon [email protected] Hemming Morse LLP 2679 Passiflora Ct Chico, CA 95973-7680 (530)879-0956 1 1

Dominic J Campisi [email protected] Evans Latham & Campisi (415)421-0288 1 1

Alan G Goedde [email protected] Freeman & Mills Inc (213)620-9535 1 1 1

Edward Jay Lieberman [email protected] Taylor & Lieberman AAC 10866 Wilshire Blvd Ste 1100 Los Angeles, CA 90024-4342 (310)475-9520 1 1

Michael R Smith [email protected] Tamiyasu Smith Horn and Braun APC 1991 N Gateway Blvd Fresno, CA 93727-1605 (559)252-8585 1 1

Scott Thomas Dye [email protected] Stoughton Davidson AC 2520 W Shaw Ln Ste 101 Fresno, CA 93711-2768 (559)437-4607 1 1

David P Tuttle [email protected] Soren McAdam Christenson LLP 2068 Orange Tree Ln Ste 100 Redlands, CA 92374-4555 (909)798-2222 1 1

Michael Philip Mingram [email protected] Lautze & Lautze 303 2nd St Ste 950 San Francisco, CA 94107-1366 (415)543-6900 1 1

Martin W Fox [email protected] Grimbleby Coleman CPAs Inc 200 W Roseburg Ave Modesto, CA 95350-5255 (209)527-4220 1 1

Thomas L. Hunt [email protected] Bean Hunt Harris & Company 7110 N Fresno St Ste 460 Fresno, CA 93720-2963 (559)221-5071 1 1

Danny Michael Heller [email protected] EisnerAmper LLP One Market St Ste 620 San Francisco, CA 94105-5105 (415)357-4227 1 1

Theresa Rose Klass [email protected] B2B CFO, LLC 15060 Park Dr Saratoga, CA 95070-6422 1 1

Thomas P Coughlan [email protected] Boas & Boas LLP 101 Montgomery St Ste 1250 San Francisco, CA 94104-4101 (415)956-4444 1 1

Caroline F Van Alst [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)836-4056 1 1

Scot William Evanhoe [email protected] Evanhoe Kellogg & Co CPAs 340 Hartnell Ave Ste A Redding, CA 96002-1873 (530)244-1900 1 1

Kenneth T Wittwer [email protected] Morse Wittwer Sampson, LLP 265 E River Park Cir Ste 110 Fresno, CA 93720-1576 (559)389-5700 1 1

Andrew L Hunt [email protected] White Zuckerman Warsavsky Luna Hunt LLP 15490 Ventura Blvd #300 Sherman Oaks, CA 91403 (818)981-4226 1 1

Jason Padjen Wegis [email protected] CBIZ Inc & Mayer Hoffman McCann PC 2 Venture Ste 450 Irvine, CA 92618-7402 (949)450-4400 1 1

Christopher Scott Meineke [email protected] Brotemarkle Davis & Co LLP 899 Adams St Ste H Saint Helena, CA 94574-1160 (707)968-2925 1 1

Henry J Kahrs [email protected] RGL Forensics 625 City Pkwy W # 290 Orange, CA 92868-4983 (714)740-2100 1 1

Emma Louise Hau [email protected] KPMG LLP Mission Towers 1 Santa Clara, CA 95054 (650)224-3182 1

Theodore L Poulter [email protected] (650)948-2280 1

Jordan P Graves [email protected] CBIZ Inc & Mayer Hoffman McCann PC 2 Venture Ste 450 Irvine, CA 92618-7402 (949)474-2020 (323) 1

Victor Philip Republicano [email protected] Victor P Republicano Jr CPA 875-A Island Dr # 250 Alameda, CA 94502-6700 (510)522-7111 1

Candace Laree Vaughn [email protected] Frank, Rimerman + Co. LLP 1801 Page Mill Rd Palo Alto, CA 94304-1216 (650)845-8163 1

Gary L Krausz [email protected] Gursey Schneider LLP 1888 Century Park E Ste 900 Los Angeles, CA 90067-1735 (310)552-0960 1

Ray Chimoon Chan [email protected] Ray C Chan CPA 2400 22Nd St Ste 100 Sacramento, CA 95818-2540 (916)421-3388 1

James R Parks [email protected] CBIZ Inc & Mayer Hoffman McCann PC 10474 Santa Monica Blvd Ste 200 Los Angeles, CA 90025-6930 (310)268-2004 1

Claudia J Stern [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)836-4000 1

Tatyana D Shtyrkova [email protected] Hemming Morse LLP 101 Montgomery St Ste 1400 San Francisco, CA 94104-4128 (415)658-5558 1

Jeffrey Allan Neumeister [email protected] Galgas Russell Weber LLP 21700 Oxnard St Ste 1950 Woodland Hills, CA 91367-3642 (818)444-6727 1

Nathan Fan [email protected] Hemming Morse LLP 660 S Figueroa St Ste 1150 Los Angeles, CA 90017-3424 (213)228-8180 1

Andrew Robert Leith [email protected] CBIZ Inc & Mayer Hoffman McCann PC 5060 California Ave Ste 800 Bakersfield, CA 93309-0731 (661)325-7500 1

Erica Jauregui [email protected] (909)854-3540 1

Jane Malaihollo [email protected] (714)609-8725 1

Fernando Galicia [email protected] (909)437-1043 1

17 363 263 238 227 204

12

FORENSIC SERVICES SECTION MEETING RULES

It’s understood that because of the nature of forensic services you may need to take phone calls during the day, but please remember: o To turn cceellll//ssmmaarrtt pphhoonneess to mute or vibrate so that the ring does not disturb

the speaker or the flow of the meeting. o Take calls outside of the meeting room.

Refrain from excessive use of wwiirreelleessss tteecchhnnoollooggyy not used in conjunction with the meeting.

Your commitment as a member and attendee is to be a ppaarrttiicciippaanntt in discussions during the meeting.

CCoonnffiiddeennttiiaalliittyy: o In order to properly discuss, comment, and debate issues during the meeting,

members are asked to maintain confidentiality of what is discussed at the meeting so that everyone can express their opinions freely.

o Statements and opinions shared at the meeting are not to be voluntarily shared during deposition, testimony, etc.

o If you are asked not to discuss or reproduce documents provided, you may not do so. There are times when the Litigation Sections’ are asked to review or comment on items that are not yet ready for public review.

CCoommmmuunniiccaattiinngg PPoossiittiioonnss:

o Only the chair of the Litigation Sections, Peter Salomon, CPA or his designee may speak on behalf of the Forensic Services Section.

TTeecchhnniiccaall RReessppoonnssee TTeeaamm:

o A Technical Response Team exists for the purpose of addressing issues with cases, reviewing standards and practice aids, and reviewing or commenting on other items as may be necessary. Should you encounter something that needs review share it with the chair and staff liaison.

EEssttaabblliisshheedd PPoolliiccyy:

o In addition to the Forensic Services Section Bylaws, there are policies established by the steering committee as well as by CalCPA from time to time. Members are expected to follow them.

o Expenditure Policy: Each individual section and the steering committee are able to spend their funds for normal operations. Non-recurrent expenditures in excess of $3,000 must be approved by the steering committee chair, treasurer and staff liaison, prior to committing the funds.

o Policies and procedures will be distributed as they are created.

13

Forensic Services Sections

Business Valuation Section

“BizComps: Study of Small Business

Values”

Jack R. Sanders, CBA, CVA

Thursday, August 14, 2014

9:30 – 11:30 a.m.

14

1

How to Influence Buyers & Sellers with Market Data —BIZCOMPS

CALCPA Forensic ServicesOakland, CaliforniaAugust 14, 2014

BIZCOMPS®

What We Will Cover

BIZCOMPS®

A brief history of Market Data

The three small business databases

More detail about BIZCOMPS

Can any of the data be combined?

How to actually apply transaction data

A review of what we have talked about

15

2


Background

BIZCOMPS®

Active Business Intermediary Since 1985

Active Business Appraiser Since 1988

Started the BIZCOMPS Studies in 1990

BIZCOMPS Software Developed in 1995

Licensed Online Delivery in 1997

Background (cont.)

BIZCOMPS®

Available Through NACVA/CEIR 1998

Business Valuation Resources Since 2000

Created BIZCOMPS User Guide in 2004

Current Software Updates Online in 2006

Created Online Contribution in 2006

Online Reward System Began in 2013

16

3


Background (cont.)

BIZCOMPS®

Secured FINRA Series 79 in 2012

BIZCOMPSOnline Began in 2013

BIZCOMPSPDF Version Created 2013

BIZCOMPS®

“It is tough to make predictions, especially about the future!”

–Yogi Berra

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4


History

BIZCOMPS®

Before the collection of transaction data, analysts used “Rules of Thumb,”

mostly developed by brokers, buyers, sellers and other middlemen.

History (cont.)

BIZCOMPS®

Rules of thumb are everywhere.

For instance, we will say, “A ballpark figure is…”

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5


History (cont.)

BIZCOMPS®

the general principle or rule based on experience or practice, as opposed to scientific calculation

a rough, practical method or procedure

Rules of Thumb are probably older than anyother valuation or pricing method.

Webster’s definition:

Rules of Thumb

BIZCOMPS®

First to compile and distribute “Rules of Thumb” was Glenn Desmond, an ASA Business Appraiser in Los Angeles. Glenn started accumulating data in the 1940’s and in 1976, started publishing “Rules of Thumb.”

He developed two editions and was printed in hardback form.

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6


Where Did Rules of Thumb Come From?

BIZCOMPS®

Shannon Pratt said in the BUSINESS VALUATION BOOK OF KNOWLEDGE that rules of thumb are “Folklore generally based on oral history among members of an industry tribe” regarding methods and parameters for valuation of companies in a particular industry or profession.

Today

BIZCOMPS®

Currently, Tom West of the BUSINESS BROKERAGE PRESS compiles and prints an annual report called the BUSINESS REFERENCE GUIDE.

Tom sends out questionnaires to various individuals knowledgeable about transactions in their business area and compiles that data into the guide.

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7


Today (cont.)

BIZCOMPS®

The Guide has over 765 pages of very useful information, including Rules of Thumb and vignettes written by various transaction experts about each significant type of business.

Tom has compared his Rules of Thumb to the data in various databases to verify the validity of ratios and has found them quite comparable.

The First Database

BIZCOMPS®

The first Transaction Database was developed by Ray Miles of the Institute of Business Appraisers in 1980. Today, the database is owned by ValuSource, LLC.

The information was and is limited today by the fields of information it contains. And the data was gathered from many different sources, which hurt credibility. The database today contains over 37,000 transactions.

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8


The Second Database

BIZCOMPS®

The Second Transaction Database for Small Businesses was developed by Jack Sanders in 1990.

The BIZCOMPSDatabase was developed to address the weakness of the IBA Database. It contains 20 fields of information and was based on the criteria Business Brokers felt important. Most information was contributed by Business Brokers with a Certification. The database today contains over 20,000 transactions.

The Third Database

BIZCOMPS®

The Third Transaction Database was developed by Shannon Pratt in 1996.

Shannon started to collect M&A Transaction Data at the request of the M&A SOURCE and became the IBBA’s Official Database. Initially the Database contained 50 fields of data per transaction as it was intended for larger transactions and was in hard back copy. More recently, smaller transactions have been added. Today, the data is only available online.

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9


Actual Database Specs

BIZCOMPS®

More info about these databases in a minute.

Not Public Information

BIZCOMPS®

Small business sale data, unlike real estate, is not readily available. There is no requirement for it to be publicly reported.

It must be privately collected and reported. The only individual repeatedly involved in transactions is a business intermediary.

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10


More About IBA Database

BIZCOMPS®

From the IBA/ValuSource Website:

37,000 transactions800 industries2,500 transactions over $1.0 million6,000 transactions in the last 5 years

Implies that 31,000 transactionsare 6 years or older.

Only available online.

Pratt’s Stats Database

BIZCOMPS®

Currently has 19,653 transactions779 4 digit SIC codesMedium revenue: $846,586Medium selling price: $445,000

Only available online by subscription.

(Single searches are available)

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11


BIZCOMPS Database

BIZCOMPS®

Currently has over 20,000 transactions433 4 digit SIC codesMedium revenue: $410,000Average selling price: $377,577

Available online and in PDF format.

(Single searches are available)

Size of Database

BIZCOMPS®

Since inception, BIZCOMPS has collected data on over 20,000 small business transactions. The primary database displays only the last 10 years’ transactions, which currently is 12,253.

BIZCOMPS philosophy is to display as much data as possible so the user can selectively analyze the data on an individual need.

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12


The Old Database

BIZCOMPS®

The 11‐year purged data is kept in a separate database and available for situations with multiple appraisal dates. It will continue to grow as more purged data is added.

The Current Database

BIZCOMPS®

The current database has 12,253 transactionscovering most of the SIC and NAICS codes sold. Each record contains 20 fields of information.

The actual sale prices total over $4.2 billion and the average transaction amount excluding inventory is $377,577. The transactions appear to have a negotiation discount of 16.8%. This compares with 11.5% last year—a real sign of a difficult market.

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13


Current Age of Data

BIZCOMPS®

As of April 2014, here is the current age of transaction data in BIZCOMPS:

2014 682013 5312012 673

2011 8382010 1,0632009 984

2008 1,4532007 9572006 1,455

2005 1,3512004 9662003 1,164

2002 1,045

Data Contributors

BIZCOMPS®

The data is only collected from business brokers and intermediaries.

These individuals are able to provide the most reliable information.

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14


No Data Alteration

BIZCOMPS®

The data is unaltered except that BIZCOMPS

suggests eliminating inordinately high, or negative earnings.

High is considered anything over a 6.0 multiple. In the current database, 8.0% would be eliminated; however, the transactions are always shown.

Normal Data

BIZCOMPS®

When plotted on a bell curve, the data takes on a very normal appearance, although some curves are bimodal.

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15


BIZCOMPS®

Charts

12,482 TransactionsArithmetic Mean = .53

Median = .44

02468

1012141618

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 151+

Actual Sale to Gross Sales(Markers = All Transactions)

Actual Sale as a % of Gross Sales

BIZCOMPS®

Charts (cont.)

12,482 TransactionsArithmetic Mean = 2.0

Median = 1.8

0

5

10

15

20

25

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6

Actual Sale to SDE (Markers = All Transactions)

Actual Sale to Discretionary Earnings

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16


BIZCOMPS®

“Statistics are like a bikini.What they reveal is suggestive,

but what they conceal is vital.”

–Unknown

BIZCOMPS®

As much data is presented as possible to help each need.

All sales are asset transactions that were debt free at close.

Types of Financial Information

30

17


BUSINESS SOLD DEBT FREE

BIZCOMPS®

Cash Transactions

BIZCOMPS®

Cash transactions are compared to terms sales.

In the current study 42% were cash transactions.

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18


Bigger vs. Smaller

BIZCOMPS®

In transactions under $100,000, the owner’s remuneration is a big part of earnings.

In transactions over $500,000, the size effect comes into play. There is more management and the business is less dependent on the owner.

What Actually Sold

BIZCOMPS®

BIZCOMPS transaction data only contains asset sales. Only the Fixtures and Equipment and Goodwill or Intangible assets are included in the transaction. Inventory is always indicated separately. Licenses to do business are included as well.

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19


BIZCOMPS®

“Age is what makes furniture worth more

and people worth less.”

–Unknown

Comparison

BIZCOMPS®

Ratio Last 10 Years Prior 10 YearsMeanMedian Mean Median

Sale/Gross Sales .53 .44 .46 .38

Sale/SDE* 2.0 1.8 2.0 1.8

*Seller’s Discretionary Earnings

33

20


BIZCOMPS®

Comparison (cont.)

Age of Data

BIZCOMPS®

Time does seem to affect the Gross Sales/Sale multiple, but not the earnings multiple. Older data does seem to lack credibility.

34

21


BIZCOMPS®

The BIZCOMPS transaction data provides an opportunity to compare and discriminate between the transactions.

There are five primary and five secondary areas of comparison.

Comparing the Transactions

Five Primary

BIZCOMPS®

By SIC or NAICS Code

By Description of Business

By Amount of Revenue

By Profitability

By Percent Rent Paid

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22


Five Secondary Areas of Comparison

BIZCOMPS®

By Down Payment & Terms

By Size of Inventory

By Days on Market

By Number of Employees

By Location

BIZCOMPS®

By the Estimate of Fixture and Equipment Value

By Franchise Information (if appropriate)

Two More Areas

36

23


BIZCOMPS®

Visual inspection of all these factors can give considerable insight into these transactions and their relationship to each other.

Two More Areas (cont.)

BIZCOMPS®

The circumstances are important. All cash or nearly cash sales are signs of a distressed business that the seller has no confidence in financing.

Terms of Sale

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24


Basic Statistics

BIZCOMPS®

This chapter has a very basic discussion of statistics. A much more sophisticated method is linear regression or multi‐linear regression, where the central tendency of the data is analyzed.

A quick and dirty formula for the calculation of Standard Deviation is on Page 12 of the User Guide. A brief explanation follows…

A shortcut method of calculating variance and standard deviation requires two quantities: sum of the values and sum of the squares of the measures.

Ex = sum of the valuesEx2 = sum of the squares of measures

Guessing the standard deviation—to avoid tedious calculations—you can quickly obtain an estimate of the standard deviation by using the formula:

Basic Statistics (cont.)

BIZCOMPS®

s r/4

38

25


BIZCOMPS®

All transactions are reported as asset sales.

All that sold was Fixtures/Equipment and Goodwill.

The values derived by BIZCOMPS transactions data can be converted to a stock or equity value by…

Asset vs. Stock Sales

Asset vs. Stock Sales (cont.)

BIZCOMPS®

First, adding all short‐term and long‐term assets less the book value of Fixtures and Equipment to the value created by BIZCOMPS transaction data.

Second, subtract all liabilities.

Result is stock or equity value.

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26


Seller’s Discretionary Earnings

BIZCOMPS®

BIZCOMPSuses Seller’s Discretionary Earnings (SDE) as a profit level. SDE is basically EBITDA plus the salary to one working owner.

Appraisers will generally subtract a normalized owner’s compensation to arrive at a true enterprise earnings.

Seller’s Discretionary Earnings (cont.)

BIZCOMPS®

SDE = NIBT plus Amortization, Depreciation, Interest, Owner’s Compensation, Owner’s Benefits, Non‐Business Expenses, and One‐Time Only Expenses.

SDE NIBT

AmortizationDepreciation

InterestOwner’s Compensation

Owner’s BenefitsNon‐Business ExpensesOne‐Time Only Expenses

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27


Inventory

BIZCOMPS®

BIZCOMPSexcludes inventory from the asking price and sale price. The amount of inventory is always shown.

The inclusion of inventory in smaller businesses would distort the sale price and lead to erratic ratios.

Inventory (cont.)

BIZCOMPS®

An excellent example is given in the User Guide.

The analyst can customize their client’s value by including client’s actual inventory.

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28


Fixtures and Equipment

BIZCOMPS®

The Fixture and Equipment value is the least verifiable field of information in BIZCOMPS. They are rarely sold separately.

The ideal level of value is Fair Market Value in Place.

The FF&E Value is still useful in comparing transactions and helping to support the value developed.

Percent Rent Paid

BIZCOMPS®

Probably the most important ratio in terms of determining the viability of the business.

Higher rents simply put more profit in the hands of the landlord. Except for unusual businesses, 10% rent is the highest that should be paid.

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29


BIZCOMPS®

This indicator can also help the analyst to determine the desirability of the business.Average time to sell is 218 days, with a median of 174 days. Businesses that take over 1,000 days to sell are difficult to sell, to say the least.

Days on Market

BIZCOMPS®

BIZCOMPShas franchise information where available, including royalty amounts.

Very little premium is added.

Just another cost of doing business.

482 transactions were franchises.

Franchises

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30


BIZCOMPS®

Another way to compare transactions.

Both advantages and disadvantages to employees!

Number of Employees

BUSINESS TYPEASKING PRICE

ANN REV

SDE

SALES DATE

SALE PRCE

% DOWN

TERMSSP/REV

SDE/REV

SP/SDE

INV FFERENT

%LOCATION AREA

Contr-Heating&AC 1,200 1,209 275 8/29/03 1,200 0.0% 0.993 0.227 4.364 50 130 0.0% MN MW

Contr-Heating&AC 465 1,727 325 11/19/03 525 66.0% 10 [email protected]% 0.304 0.188 1.615 30 517 0.0% GA S

Contr-Heating&AC 550 934 202 12/30/04 525 16.0% 10 Yrs@7% 0.562 0.216 2.599 75 6 1.0% FL S

Contr-HVAC/Plumbing 250 787 149 12/31/03 165 85.0% 0.21 0.189 1.107 0 0 0.0% CO SW

HVAC Svc 1,060 2,012 306 9/30/04 615 49.0% 10 Yrs@8% 0.306 0.152 2.01 15 120 1.5% Central FL S

Contr-Heating&AC 1,440 2,657 27 8/31/04 1,240 0.0% 0.467 0.01 45.926 60 0 0.0% MN MW

Contr-Heating&AC 267 436 14 6/30/03 90 20.0% 0.206 0.032 6.429 8 100 0.0% Glendale, AZ SW

Contr-Heating&AC 149 405 64 7/8/05 149 100.0% 0.368 0.158 2.328 3 12 0.0% FL S

Contr-Heating&AC 140 394 108 6/30/05 105 26.0% 0.266 0.274 0.972 1 39 0.0% Phoenix, AZ SW

Contr-Heating&AC 295 591 139 7/31/06 273 66.0% 4 [email protected]% 0.462 0.235 1.964 2 27 1.2% FL S

Contr-Heating&AC 150 414 84 3/31/06 155 100.0% .374 0.203 1.845 0 0 7.0% Oregon NW

Contr-Heating&AC 74 223 86 2/28/06 30 33.0% 2 Yrs@8% 0.135 0.386 0.349 5 6 0.0% Central FL S

Contr-Heating&AC 280 552 203 2/14/06 280 24.0% 10 [email protected]% 0.507 0.368 1.379 5 4 0.9% FL S

Contr-Heating&AC 62 211 92 9/30/05 43 100.0% 0.204 0.436 0.467 7 35 3.0% So FL S

Contr-Heating&AC 210 0 103 6/30/06 210 48.0% 0.0 0.0 2.039 30 120 0.0% Tucson, AZ SW

Contr-Heating&AC 391 1,418 173 10/23/06 391 20.0% SBA 10 Yrs@Pr+2 0.276 0.122 2.26 84 115 2.0% Boise, ID NW

Contr-Plumbing 2,155 4,767 930 9/7/07 1,855 18.0% SBA 0.389 0.195 1.995 45 225 0.0% Los Angeles, CA SW

Contr-Heating&AC 2,800 3,577 1,026 2/5/07 2,800 0.0% 0.783 0.287 2.729 100 480 0.6% FL S


Contr-Heating&AC 684 3,153 322 9/29/06 659 85.0% 1 Yr @6.5% 0.209 1.102 2.047 166 442 4.0% IA MW

Contr-Heating&AC 135 308 59 11/1/07 110 64.0% 0.357 0.192 1.864 10 65 0.0% Phoenix, AZ SW

Contr-Heating&AC 1,015 1,340 366 3/30/07 990 1.0% 5 Yrs@7% 0.739 0.273 2.705 10 155 3.6% MO MW

Contr-HVAC 59 0 43 5/3/07 43 0.0% 0.0 0.0 1.0 0 30 0.0% FL S


Contr-HVAC/Plumbing 550 1,419 119 10/10/07 550 0.0% 0.388 0.084 4.622 100 100 0.0% Jordan, MN MW

Contr-Heating&AC 500 542 221 10/23/06 460 35.0% 5 Yrs@8% 0.849 0.408 2.081 0 150 6.6% FL S

Contr-HVAC 295 780 0 9/28/07 230 0.0% 0.295 0.0 0.0 40 0 0.0% Minneapolis, MN MW

Selected Records View – Contrs Heating Air Conditioning

BIZCOMPS®

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31


Seller & Buyer Thoughts

Seller Buyer

BIZCOMPS®

Sample Report (cont.)

BIZCOMPS®

45

32


Sample Report (cont.)

BIZCOMPS®

BIZCOMPS®

We have covered most of the technicalities of the BIZCOMPS Transaction Database.

So now, how do we use it in the real world?

46

33


Use of Data

BIZCOMPS®

BIZCOMPS®

Need to have 5 to 30 comparable transactions

Next put data on Scattergraph with Linear Regression Analysis

Eliminate outliers or non‐relevant data

Look at other relevant databases

To Be Useful Past a Sanity Check

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34


BIZCOMPS®

DO NOT MIX DATABASES

To Be Useful Past a Sanity Check (cont.)

BIZCOMPS®

Well, Maybe you can, Carefully!!

First Good News: You can mix the Gross Sales

from each of the three databases.

Caveat:To use the ratios, be sure you know

exactly what sold.

First, you will need to add Inventory toBIZCOMPS to equal IBA & Pratt’s Stats.


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35


BIZCOMPS®

You may need to addnon‐compete agreementsand consulting agreements to IBA and Pratt’s Stats.


BIZCOMPS®

The SDE adjustments are more complex.

You will need to add owner’s compensation and non‐cash charges to operating expense in Pratt’s Stats data—mostly all EBIT or EBITDA.

(Note: Pratt’s Stats has very few SDE entries.)

No adjustments are required to BIZCOMPS

entries.


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36


BIZCOMPS®

If IBA indicates the Transaction was a Stock Sale, eliminate it. There is no way of knowing what

was included in the sale.

If any transaction had Real Estate involved, eliminate it. There is no way of knowing how

the real estate expense was handled.


BIZCOMPS®

To convert Pratt’s Stats stock sale to an asset transaction, do the following example:

Market Value Invested Capital (MVIC) 13,994,000Plus assumed non‐interest bearing debt 625,000Plus employment/consulting agreement 0

Less: cash (0)Less: accounts receivable (856,000)Less: other assets (prepaids and assets) (1,572,000)

Asset Sale Value Equivalent $12,191,000

The value of FF&E, Inventory, and Goodwill


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37


BIZCOMPS®

Handouts with additional information:

Compare Apples to Apples: Investigating the differences in Transactions databases

By C. Fed Hall III, MBA, CBA, AVAPublished in Business Valuation Update 3/31/13

The 2014 BIZCOMPSUser Guide


BIZCOMPS®

In closing, the three databases can be used together, but with extreme caution.

The best practice is to determine the value with each database separately, following the rules for each, and then compare the results.


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38


BIZCOMPS®

Determine how your client’s business varies from market data

Adjust ratios to reflect differences

Convert asset transactions to your client’s equity value

Determine the weight for the Market Data Approach


BIZCOMPS®

BIZCOMPShas over 20,000 transactions

More valid than “Rule of Thumb”

Transaction only contains FF&E and Goodwill

Inventory is not included but always given

Many ways to discriminate between transactions

Scattergraphs have Linear Regression Analysis

Summary

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39


BIZCOMPS®

All transactions are asset sales

Can convert to Stock or Equity Value

Excellent for Sanity Check

Can carefully be used for Market Approach

Databases are updated three times a year

Both electronic and hard copy versions

Summary (cont.)

BIZCOMPS®

Questions?

53

BIZCOMPS®

USER GUIDE

Copyright 2014 by Jack R. Sanders All Rights Reserved

Reproduction of this work, in whole or part, is expressly prohibited without the written permission of the author. To obtain permission, please write to the address below. Specify what data or information you wish to use and the manner in which it will be used. The information presented in this survey has been obtained with the greatest care from sources believed to be reliable, but it is not guaranteed. The author expressly disclaims any liability, including incidental or consequential damages, arising from any errors or omissions in this study. Current information about additional products and services may be obtained through the BIZCOMPS® informational website (www.bizcomps.com) or by writing or calling the following:

Attn: Jack R. Sanders PO Box 97757

Las Vegas, NV 89193 702.454.0072

702.974.4550 Fax [email protected]

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BIZCOMPS® User Guide Table of Contents

Author’s Biography ........................................................................................ 3

Introduction .................................................................................................... 4

The Studies ................................................................................................... 5

Types of Financial Information Reported ...................................................... 6

The Source of Data ....................................................................................... 7

What Actually Sold ........................................................................................ 8

Age of Data.................................................................................................... 9

Searching the Database .............................................................................. 10

Comparing the Data .................................................................................... 11

Basic Statistics ............................................................................................ 12

Converting a BIZCOMPS® Asset Sale to Equity Value .............................. 14

Using Discounts with the BIZCOMPS® Transaction Data .......................... 15

Seller’s Discretionary Earnings ................................................................... 16

Inventories ................................................................................................... 17

Fixtures, Furniture, and Equipment ............................................................. 18

Percent Rent Paid ....................................................................................... 19

Real Estate .................................................................................................. 20

Days on Market ........................................................................................... 21

Franchises ................................................................................................... 22

Number of Employees ................................................................................. 23

Other Databases ......................................................................................... 24

Bibliography ................................................................................................. 25

Definitions .................................................................................................... 26

Standard Industrial Classification Code Numbers ...................................... 27

Transaction Data Submission Forms .......................................................... 33

BIZCOMPS® Online Order Form ................................................................. 36

BIZCOMPS® PDF Version Study Order Form ............................................ 37

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Author’s Biography Jack R. Sanders is the Managing Director of Spectrum Corporate Resources, LLC, a marketing firm specializing in middle-market mergers and acquisitions. He was promoted to President/Manager in 2001 and purchased the company in 2003. He is also President of Corporate M&A Advisors, Inc. and Mid Market Corporate Services, Inc. He has been an active full-time business intermediary since 1985. He has personally handled over 130 business transfers and has appraised over 1,450 businesses. His focus has been on manufacturing, wholesale/distribution, and business to business service businesses. Mr. Sanders spent 15 years with Page Olson Commercial Brokerage in San Diego, California as a Broker Associate. He developed the capability of providing Certified Business Valuations for business owners and other authorities needing to place a value on the intangible assets of a business without an anticipated sale. Mr. Sanders is also the author of the "BIZCOMPS®" studies, a leading authority on the market value of small and medium-sized businesses in the United States and Canada. The studies contain actual transaction information on over 20,000 transactions and are marketed in both print and electronic form. He frequently gives presentations at professional seminars and conferences and is an instructor in educational courses leading to the Certified Business Intermediary designation. Mr. Sanders is a Certified Business Appraiser, a Certified Valuation Analyst, a Certified Business Intermediary, and a member of the Association for Corporate Growth, the Institute of Business Appraisers, the National Association of Certified Valuation Analysts, and the M&A Source. He is a past member of the Board of Directors of the International Business Brokers Association. He has both Bachelors and Masters degrees in Business Administration. His hobbies include skiing and boating.

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Introduction

“It is tough to make predictions, especially about the future!” –Yogi Berra

The BIZCOMPS® studies of small business sales were initiated in 1990 to investigate and report financial information about small business transactions in the marketplace. Historically, market data on small business transfers has been virtually nonexistent, leaving the investor or advisor to speculate about the fair market value of the enterprise. The BIZCOMPS® studies remove the marketplace uncertainty and provide the reader with detailed, meaningful financial information about these "real world" transactions. Since its inception, BIZCOMPS® has accumulated and reported data on over 20,000 transactions in the United States. Small business transaction information is not readily available because it is not required to be publicly reported. In the absence of reliable data, investors, appraisers, and brokers have attempted to develop universal valuation formulae or "rules of thumb" to set guidelines for appraising small businesses. These generalized "formula" approaches are chastised in most valuation literature and are a poor substitute for comparable sale data. A careful analysis of the BIZCOMPS® database provides market-based comparable sales information and eliminates the need to rely on rule-of-thumb formulas.

The BIZCOMPS® studies are an invaluable resource to the investor or advisor to small business transactions. The studies contain detailed information on over 12,553 transactions from 2002 through April 2014. The 12,553 business transactions had asking prices totaling $5,172,592,000 and actually sold for a total of $4,739,716,000 or an average of $377,577 per business. These statistics also suggest that on an overall average, the 12,553 transactions were discounted 8.4% during the actual sale of those businesses. The information is segmented in many more ways to make it more useful to the reader.

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The Studies

“Statistical figures referring to economic events are historical data. They tell us what happened in a non-repeating historical case.”

–Ludwig Edgar von Mises The objective of BIZCOMPS® is to accumulate reliable comparable business sale information for entrepreneurs, investors, and advisors trying to estimate the fair market value of small businesses. The study is geographically limited to the Eastern and Western United States to provide reliable, comparative data that is regionally discriminated. Since business values are affected by external economic forces, it is important to compile sales data by region. The BIZCOMPS® studies collect and report the most relevant financial information available on small business transactions in the United States. Because the information is not required to be publicly reported, BIZCOMPS® obtains its financial information from business brokers and transaction intermediaries. These financial consultants are considered to be reliable and disinterested, and their valuable input provides the basis of the BIZCOMPS® studies. BIZCOMPS® reports all financial information available on each reported transaction without excluding any particular class or type of business. The reported data is not altered; however, the earnings multiple for 1,004, or 8.0% of the 12,553 businesses surveyed, has been excluded from the data averages. It is the author's opinion that these 1,004 businesses are outliers that have inordinately high earnings multiples or negative earnings that would have distorted the average statistics. The eliminated data appears to have been distorted because the businesses sold with substandard or unreported earnings, causing the interpolated earnings multiple to be skewed. It is interesting to note that few businesses were sold with substandard earnings. Note that all included businesses were reported by business brokers and, of course, actually were sold. This fact may establish some financial parameters for "sale ability" by a business broker. Specifically, the ultimate sale price of a business sold should be from 30% to 100% of gross revenues and from 1.5 to 3.5 times Seller's Discretionary Earnings. This generalization would exclude service stations and travel agencies. BIZCOMPS® philosophy is to present as much information as possible so that the user can selectively analyze the data based on individual need. For that reason, all sales are shown as asset transactions and do not include cash, accounts receivable, real estate, accounts payable, or any other liabilities. Inventory has also been excluded, but the actual amount of inventory at the time of sale is shown for each business sale.

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Types of Financial Information Reported

“Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital.”

–Unknown For each business transaction surveyed, the BIZCOMPS® 2014 study reports a number of items of financial and other data. Specifically, the survey includes the type of business, the SIC code number, the date of sale, and the location of the business. The survey includes the asking price, the sale price, and the terms of sale. Financially, the surveyed information includes the annual gross revenue, the Seller's Discretionary Earnings (SDE), the amount of inventory, the amount of furniture, fixtures, and equipment, and the rent as a percent of sales. Of course, the sale price of the business is included and, from it, the sale price as a percent of gross revenue ("Gross Revenue Multiple"), and the sale price as a multiple of the Seller's Discretionary Earnings ("SDE Multiple") can be calculated. In a survey of this type, all of this information is important to the user and must be presented in detail for the survey to be significant. The author believes that the user must have access to all of this data, in a fully published form, to be able to meaningfully analyze the information. The transaction data is also analyzed by terms of sale, specifically businesses that sold for cash. In this study, 4,708 of the 12,553 total businesses were sold for cash. Of the 2002–2014 transactions, 42% were all cash sales. It should be noted that BIZCOMPS® cannot determine which cash transactions were marketed as "cash only" sales, or were converted to a cash sale at some point during the transaction. In general, business brokers will do everything possible to avoid marketing a business as an all cash sale. Requiring an all cash transaction has a very negative effect on the buyer’s perception of the business of the business. And last, the data is sorted by size. The transactions under $100,000 definitely indicate that the owner’s remuneration is the major factor in the sale of very small businesses. Transactions over $500,000 definitely begin to indicate a size premium. These larger businesses tend to have more management and are less dependent on the individual effort of the owner. The BIZCOMPS® transaction data contains 2,031 out of 12,553 businesses that were sold in excess of $500,000. These ratios confirm what would be logically be suspected—larger businesses are more profitable, pay less rent, and sell for much more (by ratio) than small businesses. The purchase of a smaller business is more like buying a job with Seller’s Discretionary Earnings ratios that rarely exceed 1.5 times SDE.

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The Source of Data

“Statistics are no substitute for judgment.” –Henry Clay

The transaction data contained in the BIZCOMPS® database is submitted on a voluntary basis almost exclusively by IBBA (International Business Brokers Association) Certified Business Intermediaries. This is the only group solicited by BIZCOMPS®. Others that indicate they would like to participate in the BIZCOMPS® program are considered on a case-by-case basis. If the transaction data is deemed reliable, it is accepted. However, over 90% of the BIZCOMPS® transaction data is still supplied by brokers with a certification. The BIZCOMPS® contributor’s program is that the contributor is rewarded with a one year’s free access to BIZCOMPS® online for every five (5) usable transactions they submit. Unfortunately, it seldom works exactly that way. Business intermediaries, by the nature of their business, have wildly fluctuating transaction volumes. Sometimes they have just three or four transactions to report; sometimes they have 15 or 20. In any event, BIZCOMPS® will work with them. And of course, not every CBI can take or has the time to report the data. It is a frustrating process. Transactions reports can be submitted on line through the bizcomps.com website. This method is paperless and does not rely on the USPS. Several contributors have a policy of submitting throughout the year every time they close a deal. A folder is created for each submitter and the data is retained there until ready for entry. BIZCOMPS® goal has never been to have the largest amount of transaction data—only the most current and reliable possible. To achieve this goal, the databases are currently updated and purged of 11-year-old data once every year. As of April 2014, here is the current age of transaction data in BIZCOMPS®:

2014 68 2013 531 2012 673 2011 838 2010 1,063 2009 984 2008 1,453 2007 957 2006 1,455 2005 1,351 2004 966 2003 1,164 2002 1,045

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What Actually Sold

“Capitalism is the only system in the world founded on credit & character.” –Hubert Eaton

Only two elements are contained in either the BIZCOMPS® Asking Price or the Sale Price. The items are Fixtures & Equipment (FF&E) and Goodwill—or the intangible value. Cash, accounts receivable, loans receivable, real estate, and other assets are not included, and all liabilities have been excluded. This is nothing magical—just simply the way these businesses are sold. They are all asset sales or have been converted to an asset sale. The sellers of these businesses rarely are willing to part with the cash and accounts receivable and the buyers are rarely willing to pay for it. And the businesses are considered to be debt-free at close even if there are new loans coming on board from the seller or others. Sellers usually are responsible for paying off all debt at the close of sale. Again, real estate used by the business is not included. Small businesses almost always lease the premises they occupy. Leasing is a far better use of capital, at least in the early stages of a business’ life. Somewhere less than six percent of the transactions reported involve real estate. The value of the real estate is subtracted from the enterprise value.

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Age of Data

“Age is what makes furniture worth more and people worth less.” –Unknown

Much has been written about the need to have current, relevant transaction data. Ideally, there should be enough recent data available to meet these criteria. In fact, due to the difficulty involved in obtaining reliable data, particularly in the more unusual or unique business categories, this is often not the case. The analyst is left with a decision to go with limited data or to use older data that the bases contain. The BIZCOMPS®

studies contain the last 10 years’ transactions, and routinely purge older data by moving it to an additional database. This over 10-year-old data is available for special assignments such as divorces when one of the parties owned a business prior to marriage. Recently, the author compared current study data with the data over 10 years old. First, the Gross Sales to Sales Price ratio was compared. In the current National Database, that ratio was available in 12,482 out of 12,553 transactions. The arithmetic mean of this ratio was .53, while the median was .44. A similar analysis of 7,509 transactions out of 7,606 transactions older than ten years was made. The arithmetic mean was .46 and the median was .38. The same analysis was made of the Seller’s Discretionary Earnings (SDE) to Sale Price ratio. The arithmetic mean for the current study was 2.0, while the median was 1.8. In the over 10-year-old data, the arithmetic mean was 2.0 and the median was 1.8. (In this analysis, no ratios were considered over 6.0 times SDE.) This helps to confirm what many have already expressed—that over time, there is very little difference in the ratios, particularly, the more important Seller’s Discretionary Earnings to Sale Price ratio. These ratios tend to stay consistent, while the earnings they are based upon change, thus causing an ultimate variation in sale price. I should add that there seems to be a limit to how old the data can be. Even though the ratios appear to be reliable, the use of data significantly older than the date of analysis seems to lack credibility.

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Searching the Database

“Facts do not cease to exist because they are ignored.” –Aldous Huxley

There are several techniques that are useful when searching the BIZCOMPS® database. First, in the electronic formats, the analyst can make a five to ten level search for any field in a transaction record. There are 20 searchable fields of information in each record. Most analysts start with either an SIC (Standard Industry Code) or a NAICS (National American Industry Classification System) search and then attempt to pare down the number of transactions. If little or no data appears with the first search, the author suggests a word search. Due to confusion with the numbering systems or possibly a business with several industry codes, it may be improperly classified. It is best to make the word search as simple as possible to assure the greatest number of hits. If possible, use unique words or syllables. For broader categories, abbreviations help. The abbreviations used in BIZCOMPS® are:

Contr = Contractor Deli = Delicatessen Distr = Distributor Mfg = Manufacturer Restr = Restaurant Whsle = Wholesale

Once you have located transactions, check the SIC code and make another search for the SIC to see if other transactions turn up. Once the analyst has exhausted search possibilities, the transactions can be hand selected or discarded. The hard copy studies do not permit mechanical searches but the author has provided printouts of the major categories (Manufacturing, Wholesale/Distribution, Food Service, Retail, and Service Businesses) and has also provided printouts of any group of businesses with five or more in the same category. These printouts have the percentage the business sold for as compared to the Asking Price, and the arithmetic mean and medians of both the important ratios.

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Comparing the Data

“Facts are stubborn, but statistics are more pliable.” –Unknown

The BIZCOMPS® transaction data provides an excellent opportunity to compare or discriminate between the transactions. There are currently five primary areas for comparison and five secondary areas. The primary areas are:

By SIC or NAICS codes By Description of Business By Amount of Revenue By Profitability By Percent Rent Paid

The five secondary areas for comparison are:

By Down Payment & Terms By Size of Inventory By Days on Market By Number of Employees By Location

Additionally, an estimate of the value of Fixtures and Equipment and franchise information is given. These fields of information may provide additional input about the transactions being analyzed. Visual observation of these 12 factors can provide considerable insight into these transactions and their relationship to each other.

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Basic Statistics

“Statistics are like witnesses—they will testify for either side.” –Unknown

We live in a world of rapidly growing collections of data. Information is being amassed and communicated on an even wider range of human activities and interests. Even if supported by a computer database, a calculator, or a statistical package, it is hard for the "average person" to gain a clear sense of what this information might be telling them. A crucial human skill is to be selective about the data we choose to analyze and, where possible, to summarize the information as briefly and usefully as possible. In practice, the two most useful questions are, what is a typical, or average value? And, how widely spread are the figures? While this is not an extensive, exhaustive discussion of statistics, we will attempt to discuss two items—the average and the spread. First, a sensible strategy is to find some typical or middle value which may be taken as being representative of the rest. This is the average or "arithmetic mean," and is simply the sum of the ratios divided by the number of ratios. The second is the "median," which is the total of the two most central ratios divided by two. This is easily performed even with a large number of ratios by a computer simply by sorting and then finding the middle ratio. The third method is to find the ratio that occurs the most, or the "mode." It is important to compare the arithmetic mean with the median to get an idea of how normal the relationship is. If they are quite always apart, it suggests that outliers are skewing the data and the analysis requires closer examination. In the author’s experience, the outliers are mostly on the higher side, meaning some transactions sold at much higher multiples. It rarely is the other way around. Once we have developed the above methods, the next step is to determine how widespread the ratios are. Since people increasingly are performing statistics with the aid of calculator or suitable computer software such as Excel or others, our effort here will be to focus less on mind-numbing arithmetic and more on the principles on which they are based. The most elementary measure of variation is "range." Range is defined as the difference between the largest and the smallest values. "Deviation" is defined as the distance of measurement away from the mean. "Variance" is defined as the sum of the squared deviations of n measurements from their mean divided by (n-1).

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Basic Statistics [cont.] Standard deviation is defined as the positive square root of the variance. The practical significance of the standard deviation is that with mound-shaped (bell-shaped) distribution, the following rules apply: 1. The interval from one standard deviation below the mean to one standard deviation

above the mean contains approximately 68% of the ratios. 2. The interval from two standard deviations below the mean to two standard

deviations above the mean contains nearly 95% of the ratios. 3. The interval from three standard deviations below the mean to three standard

deviations above the mean contains approximately all of the ratios. These mound-shaped curves are usually called normal distributions or normal curves. A shortcut method of calculating variance and standard deviation requires two quantities: sum of the values and sum of the squares of the measures.

Ex = sum of the values Ex2 = sum of the squares of measures

Guessing the standard deviation—to avoid tedious calculations—you can quickly obtain an estimate of the standard deviation by using the formula:

which reads "the standard deviation is approximately equal to the range (the difference between the lowest and highest values) divided by 4." This is a crude, simplistic calculation without great accuracy. It will still give an estimate of the standard deviation. A much more precise method is to calculate the standard deviation for a range of numbers with a calculator or computer and divide the standard deviation by the arithmetic mean. The result will give the Coefficient of Variation. A result of .30 or less indicates a tighter grouping of data that may be acceptable for comparable purposes.

s r/4

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Converting a BIZCOMPS® Asset Sale to Equity Value

“A good example has twice the value of good advice” –Unknown

All transactions in the BIZCOMPS® database were either asset sales or were converted to an asset sale, meaning that the only assets that sold were Fixtures & Equipment and Goodwill. To convert this value to an equity interest of an owner or seller of a business requires a couple of steps. First, add all short and long-term assets to the BIZCOMPS® value, less the value of the Fixtures & Equipment. The Fixtures and Equipment employed in the business have already been included in the various transactions in the BIZCOMPS® database. The second step is to subtract all liabilities (the business is considered to be debt-free at the time of sale).

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Using Discounts with the BIZCOMPS® Transaction Data The question has come up about using Minority or Marketability Discounts with BIZCOMPS® transaction data. The Minority Discount is the easiest to discuss so we will start there. All the transactions in the BIZCOMPS® database were 100% sales operated by one working owner. If there were one or more partners in the business, the sale was converted to a 100% interest sale, with all discretionary compensation (SDE) going to one working owner. The practitioner can still apply a minority discount to the entire appraised enterprise value if his or her assignment warrants the discount. The Marketability Discount is a little more complex. The average transaction in the BIZCOMPS® database took 218 days to sell, with a median of 174 days. No additional accounting of the days required to sell is made. More importantly, all transactions in the BIZCOMPS® database were reported by Business Brokers or Intermediaries. All those professionals were paid a commission, and the majority were paid a commission of Ten Percent (10%) of the sales price. If the BIZCOMPS® Transaction Data were used in conjunction with the Market Approach, there are usually other methods of developing value, and the Market Approach is often used as more of a sanity check than a primary method. In some situations, no other methods are available due to unreliable records and other problems. In that case, the Market Approach may become a Primary Method. As above, if the assignment warrants, the practitioner can still apply a Marketability Discount to the overall enterprise value. There are differing opinions in the business valuation community about applying a Marketability Discount in the case of small businesses. Some feel that the Ten Percent commission paid to the Broker/Intermediary is sufficient, and consider the time required to sell a small business is normal. Others still see the need for a Marketability Discount due to the fact that the enterprise value cannot be converted to cash in three working days, as in the case of other types of investments. The practitioner needs to make a decision as to what discounts to apply or not apply.

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Seller’s Discretionary Earnings

“I don’t want to do business with those that don’t make a profit, because they can’t give good advice.”

–Lee Bristol The reasons we use Seller’s Discretionary Earnings (SDE) (formerly Seller’s Discretionary Cash Flow) are several. It is a level of earnings Certified Business Intermediaries are familiar with. For years they have used Adjusted Net Profit, then Seller’s Discretionary Cash Flow, and now Seller’s Discretionary Earnings. All have exactly the same definition. Seller’s Discretionary Earnings allows the comparison of earnings from several different types of entities, i.e. Corporations, Partnerships, Sole Proprietors, Limited Liability Companies, Sub-Chapter "S" Corporations, etc. SDE is calculated by adding to the most recent full year’s Net Income Before Taxes (NIBT): Amortization, Depreciation, Interest, Owner’s compensation, Owner’s benefits, Non-business related expenses, and onetime-only expenses. If there is more than one working owner, a hypothetical salary will be subtracted for the lowest paid working partner. Business Appraisers, in their analysis, will normally subtract the value of the owner’s services from SDE. They are trying to estimate the real enterprise return.

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Inventories The exclusion of inventory from the financial averages requires further discussion. In business sale transactions, inventory transfers at the date of closing based on the wholesale cost of "good" inventory existing at that date. Since the amount of inventory can vary so significantly from business to business, BIZCOMPS® believes that the financial ratios of the selling price of a small business should exclude this relatively volatile asset. Also, there may be external reasons to manipulate the amount of inventory at the time of closing that, if included, would distort the selling price of the business. If it could be assumed that the "optimal" level of inventory was included in every business sale transaction, or that the aggregate statistics would produce the optimal level of inventory, then inventory could be meaningfully included. The author does not believe this is a safe assumption, and therefore inventory is excluded from the statistical averages. The best example of excessive inventory was a small manufacturing concern the author sold several years ago. The business was founded by a retired sheet metal contractor who saw a need for a commercial roof drain that would not rust when standing water accumulated on its surface. He manufactured his roof drains from copper sheet. In fact, to get the best prices, he would carefully follow the commodity price for copper and when the price was low enough, he would purchase an entire railroad carload of copper sheet. This quantity ($200,000) was a little over two years’ supply. He would store the copper in a warehouse near the railroad siding and draw from that supply as he needed to. He had just purchased a new carload when for health reasons, he decided to put his business on the market. We were fortunate to find a buyer (a general contractor whose industry was down) and negotiate a quick sale. The buyer quickly realized the market value of the copper sheet and agreed to buy this business plus two years’ worth of inventory. If you look at the sale price for this transaction in the BIZCOMPS® database, you will find it at $245,000 plus $200,000 worth of inventory. In a database that includes inventory, the sale price will be listed at $445,000, each with the same Seller’s Discretionary Earnings (SDE) of $142,000. The author of BIZCOMPS® believes the best policy is for the analyst to add his or her client’s inventory value to the sale price, thus customizing the value for his or her client’s particular situation.

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Fixtures, Furniture, and Equipment The estimate of the value of the fixtures, furniture, and equipment (FF&E) is the least verifiable field of information in the BIZCOMPS® transaction data. They (the FF&E) are never separately sold and only rarely independently valued. They are simply a part of an assemblage of assets that are employed to generate income, hence, hopefully profit. That profit will eventually be a part of a basis for the sale price of a business. Given that qualification, the FF&E value is still helpful when determining the degree of Fixture and Equipment newness. Keep in mind that the FF&E estimate may have been made by any one of a number of parties to the transaction. It may be the seller’s estimate, new value, book value, replacement value or, hopefully, the estimate of an experienced intermediary familiar with this type of business. In any event, this estimate should be used with caution.

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Percent Rent Paid The last comparison is by rent paid as a percent of Gross Sales. This important indicator has a lot to do with the profitability, hence, the desirability of each individual business. For instance, liquor stores, because of their competitive nature, are particularly sensitive to rent. In general, only exceptional businesses can afford to pay rent that is more than 10% of Gross Sales. Liquor stores should pay rent equal to 5 or 6% of Gross Sales. If a mature business has a rent expense greater than 10% of gross sales, it is usually a less profitable business. For this study, contributors supplied rent information on 60% of the business sales reported. Hopefully, that ratio will continue to improve in upcoming studies.

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Real Estate

“Few rich men own their property. The property owns them” –Robert G. Ingersoll

Small business owners seldom own the real estate their business occupies. In the current BIZCOMPS® database, less than six (6) percent of the businesses owned real estate in some fashion. In many cases, the real estate was owned personally but sold along with the occupying business. Rent is often paid by the business to the owners of the property. In any event, the value of the property has been removed from the value of the business. And, no attempt has been made to impute a market rate rent. Most business owners realize that the best use of any extra funds they might have to invest in the businesses’ property is better used to grow the business. Also, leasing the premises leaves the business in a much better position to move as growth dictates without the worry of disposing of the property. Also, there are some business owners that have had bad experiences with landlords and simply want to control their own destiny. Other more mature businesses have gone past the need for growth capital and want to diversify. In any case, they are in the minority.

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Days on Market This important statistic tells the analyst a great deal about the desirability of the business sold and the available pool of potential buyers. The author analyzed 8,457 out of 12,553 transactions and discovered that the average number of days on market was 218 days, with a median of 174 days. Once the analyst has selected a sample set of data, careful consideration should be given to the length of time required to sell each transaction. Transactions requiring longer than the average or median time to sell should be viewed with suspicion.

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Franchises BIZCOMPS® has been capturing data on the sale of franchised businesses for about four years. At this point only 572 out of 12,553 businesses reported have been described as franchises. Part of the reason for the low reported number is that business brokers generally do not add much premium for their sale. Franchises are a major component of the America Dream. For an individual new to the business world, the franchise concept is alluring. You know that your franchisor’s concept is already well accepted. You expect territorial protection, training, cooperative advertising, and ongoing support. The question for the analyst is, should a premium be placed on the sale of a franchised business? i.e. the subject business is a non-franchise and the comparative transactions are all franchises—should the franchise premium be deducted for more accurate comparison? Or, as is more often the case, if the subject business is a franchise, should a premium be added to the non-franchise transaction data? There clearly is a premium attached to a recognized franchise such as McDonald’s or Stanley Steamer. However, that premium can swing the other way. A few years back, the Jack-in-the-Box hamburger chain had several incidences of meat contamination that led to several cases of severe illness and at least one death. The franchises were almost unsaleable at that time, as well as suffering from decreased sales. Also, Robert L. Purvin, Jr., author of Franchise Fraud, contends that many of the benefits of a franchise are an illusion—particularly, a widespread claim by the industry that 95% of all franchisees are still in business after five years, compared to a reported 60% failure rate for non-franchised businesses. This claim is quite misleading, as the franchise industry only counts closed stores, not those returned or taken back by the franchisor and eventually resold to another party, a practice that is quite common in the franchise industry. The author cites one franchise that was resold seven times before eventually closing, and never once reported as a failure to the Department of Commerce. The author also cites many other ways that the franchisor fails to follow through on franchise promises. While a premium value in a McDonald’s restaurant certainly does exist, the analyst should carefully look at any lesser known franchises with skepticism. As the BIZCOMPS® database records more franchise transactions, the opportunity to compare franchise and non-franchise transactions should appear. While, it is obvious that the franchise trend is not a fad and will not soon disappear, it is equally obvious that not every franchise will become a McDonald’s. And, even with heavy regulation, the new-to-business buyer is easy prey for a marginal franchise.

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Number of Employees The "Number of Employees" field of information in a transaction record can be very useful to the analyst, along with other fields in the record. It gives insight into the scope and size of the business, and also, an idea as to how the business is operated. For instance, a business with all part-time employees would indicate an owner who works himself or herself and only hires part-time help. A transaction with no part-time help could indicate the opposite. Also, a business with a number of employees could indicate a riskier enterprise. Note: At this writing, the "Number of Employees" field is not displayed in the hard copy studies. Effort is underway to display this important information soon.

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Other Databases There are three other small business databases available. Each has its own unique attributes. I will list them in alphabetical order: 1. Done Deals® database is now owned by Practitioners Publishing Company. Started

in 1996. Now has approximately 9,579 transactions in the $1.0 million to $1.0 billion sale price range, with 50% of the transactions over $15.0 million and 50% under $15.0 million. Contact Practitioners Publishing at www.ppcnet.com.

2. The Institute of Business Appraisers database which is now over 25 years old, has 35,000 transactions in more than 725 SIC codes. The database contains fields such as annual sales, earnings, sale price, locations, and the date of sale.

Contact the Institute of Business Appraisers at 800.299.4130 or www.go-iba.org.

3. Pratt’s Stats™, at the BVMarketData website, started in 1997 and now has over 17,500 private and public transactions ranging from under $1.0 million to $1.0 billion in sale price. The transactions cover 720 SIC codes and contain 88 different fields of information, including a complete income statement and a balance sheet. For more information contact 888-BUS-VALU or www.BVMarketData.com.

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Bibliography 1. Business Statistics, 1985, Douglas Downing, Ph.D., & Jeffrey Clark, Ph.D. Barron’s Educational Series 2. Business Reference Guide, 2014, Tom West Business Brokerage Press 3. Franchise Fraud: How to Protect Yourself Before and After You Invest, 1994,

Robert L. Purvin John Wiley & Sons 4. Forgotten Statistics: A Self-Teaching Refresher Course, 1996, Douglas Downing, Ph.D., & Jeffrey Clark, Ph.D. Barron’s Educational Series 5. The Market Approach to Valuing Businesses, 2001, Shannon P. Pratt, FASA John Wiley & Sons 6. Statistics: Cliffs Quick Review, 1993 7. Statistics: A Self Teaching Guide, Fourth Edition, Donald J. Koosis John Wiley & Sons 8. Statistics for Dummies, 2004, Deborah Rusey, Ph.D. Wiley Publishing, Inc. 9. Transaction Patterns, 2000, Toby Tatum Available from Business Valuation Resources 10. Understanding Business Valuation: A Practical Guide to Valuing Small to

Medium-Sized Businesses, 2002, Gary R. Trugman, ASA, CBA, CPA American Institute of Certified Public Accountants 11. Valuing Small Businesses & Professional Practices, 3rd Edition, Shannon P.

Pratt, FASA McGraw-Hill Publishing 12. Harmonic Mean Value: The Appropriate Measure of Central Tendency, Toby

Tatum, CBA, MBA

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Definitions SIC = Small Business Industry Classification Number (Standard

Industrial Classification) NAICS = North American Industry Classification System BUS TYPE = Best Description of Subject Business ASK PRICE = Asking Price (000's) Does not include inventory ANN GROSS = Annual Gross Sales (Normally Net of State Sales Tax). SDE = Seller's Discretionary Earnings (Net Profit Before Taxes and any compensation to owner plus Amortization, Depreciation, Interest, Other Non-Cash Expense and Non-Business Related Expense) SDE Assumes One Working Owner SDE/GROSS SALES = Seller’s Discretionary Earnings Divided by Gross Sales SALE DATE = Actual Date of Sale SALE PRICE = Actual Sale Price (in 000's) Inventory has been deducted if it was in Sale Price % DOWN = Down Payment as a Percent of Sale Price TERMS = Terms of New or Assumed Encumbrance SALE/GROSS = Sale Price Divided by Gross Sales SALE/SDE = Sale Price Divided by Seller’s Discretionary Earnings INV = Inventory at the Time of Sale (in 000's) Inventory is not included in Sale Price FF&E = Estimate of Value of Furniture, Fixtures & Equipment RENT/SALES = Rent as a Percent of Sales DAYS ON MKT = Actual Number of Days Business Was on Market FRANCHISE ROYALTY = Actual Royalty Less Advertising Percentage AREA = Region or Geographical Location of Business

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Standard Industrial Classification Code Numbers As a convenience to the users of BIZCOMPS® 2014, the National Industrial Edition of Study of Small Business Sales, we have grouped each company listed in the survey by Standard Industrial Classification numbers. The numbers assigned identify the activities of the company according to a standard system of classification established and approved by the Federal Government. This system covers the entire field of economic activity and is widely used by both government and private agencies throughout the country. The accompanying tabulation shows these numbers to the third digit classification covering firms in the survey for manufacturing and related services. The complete numbers to the fourth digit, including a product index and definitions, are included in the transaction’s SIC. Transaction data may also be searched by the NAICS (North American Industry Classification System) code in the Online format. The survey uses SIC numbers based on the 1987 Revision to the Standard Industrial Classification Manual. This most recent update to the SIC system takes into account technological changes; institutional changes such as deregulation in the banking, communications and transportation industries; and the tremendous expansion in the service sector.

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SIC Code Numbers [cont.]

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83


84


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Transaction Data Submission Forms

CERTIFICATION FORM To: Jack R. Sanders BIZCOMPS® PO Box 97757 Las Vegas, NV 89193 As you suggested, I am enclosing business sale information on _____ transactions I have direct knowledge of. I believe this information, to the best of my knowledge, to be correct. I understand that I am to receive one year’s free access to the full BIZCOMPS®

database online. Access to start after receipt of transaction date. Signed Name Business Name Address City & State Phone No Email Address Email Address again Date Additional Comments

20 FOOD AND KINDRED PRODUCTS

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BIZCOMPS® SALE DATA SUBMISSION FORM

SIC # (If Available)

Type of Business

Product/Service

Business Name

Asking Price

Annual Gross Sales

Net Inc. Before Taxes

Seller’s Disc. Earnings

Date of Sale

Sale Price

Asset or Stock Sale?

% Down Payment

Terms (Interest Rate & Note Length)

Inventory Amount Inv. in Sale Price?

Fixture & Equip. Value

Value of Real Estate?

Rent as a % of Sales?

Days on Market?

Franchise Royalty %

# of Employees

Geographical Area?

Comments

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SUBMISSION REPORT KEY SIC = Small Business Industry Classification Number (Standard Industrial Classification)

NAICS = North American Industry Classification System

TYPE OF BUSINESS = Best Description of Subject Business

PRODUCT/SERVICE = Best Description of Product or Service

BUSINESS NAME = Actual Name or Identification Code for Business

ASKING PRICE = Asking Price (000's) (Does not include inventory)

ANNUAL GROSS SALES = Annual Gross Sales (Normally Net of Sales Tax)

NIBT = Net Income Before Taxes

SDE = Seller's Discretionary Earnings (Net Profit Before Taxes AND ANY COMPENSATION TO OWNER Plus Amortization, Depreciation, Interest, Other Non-Cash Expense, and Non-Business Related Expense) (Normally to One Working Owner)

DATE OF SALE = Actual Date of Sale

SALE PRICE = Actual Sale Price (in 000's)

ASSET OR STOCK SALE = If Stock Sale Show Asset Value

% DOWN PAYMENT = Down Payment as a Percent of Sale Price

TERMS = Interest Rate and Terms of New or Assumed Encumbrance

INVENTORY AMOUNT = Inventory at the Time of Sale (in 000's)

INV IN SALE PRICE = Was Inventory Included in Sale Price?

FIXTURE & EQUIP VALUE = Best Estimate of Value of Furniture, Fixtures & Equip.

VALUE OF REAL ESTATE = Value of Real Estate Included in Sale

RENT AS A % of SALES = Annual Rent Paid as a Percent of Gross Sales

DAYS ON MARKET = Actual Number of Days on Market

FRANCHISE ROYALTY % = Actual Royalty Less Advertising Percentage

# OF EMPLOYEES = Full Time or Part Time

GEOGRAPHICAL AREA = Region or Geographical Location of Business

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BIZCOMPS® Online Order Form

89

BIZCOMPS® PDF Version Study Order Form

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Forensic Services Sections

Business Valuation Section

“Leveraging Values for Productivity

and Profit”

Dave Shoquist, CVA

Thursday, August 14, 2014

1:30 – 3:00 p.m.

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1 I Private and confidential

August 14, 2014

Leveraging Valuation for Productivity and Profit

Presented By

Dave Shoquist

CalCPA Business Valuation Meeting

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• Founded 2007

• U.S. Based

• Credentialed Valuators

• Serves all sizes of CPA firms

• Genesis:

- Industry Observations

- Needs of BV Credentialed CPAs

- Provided Impetus to become external provider

About BV Backoffice

93


Valuation Support Mission

Provide business valuation support services to credentialed valuators, enabling them to transition from the tactical work of valuation production to the strategic work of growing their firm’s valuation niche.

Support For Individuals and Firms

94


• Why Consider Outsourcing Business Valuation Support

• How Does BV Support Work?

Overview of Session

• Leveraging Your Valuation Work

• SME Trends and What They Mean to You

• Value Pricing for Profitablilty

95


SME Landscape – Current Trends

Boomers are in transition

10,000/day retiring over next 19 years

Trillions of $ of business value

changing hands

96


SME Landscape – Surprising Stats

Of Small to Mid-Sized Businesses

will be for sale over the next 10 years

Will not successfully sell75%

50%

97


SME Landscape – Great Need

Increasing Demand for Valuationand Succession planning

Owners need Help!

98


To Maximize Owner’s Return on Investment

Maximize the underlying value of their business1

Use a sales process that maximizes what the market will pay

2

Pay as little as possible in taxes upon sale3

99


Leveraging Your Valuation Work

• To Maximize Value, Clients Need To:

- Understand how much their business is worth

- Understand the factors that create and detract from value

- Have tools to measure and monitor progress

• Opportunity for you as trusted advisor!

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What if a Valuation Were Re-Purposed…

Historical

• Point-in-time value

• Event Driven

• Client Initiated

• Used for a single purpose

• One-time fee

Re-Purposed

• Benchmark for Future Performance

• On-going Enhancement Tool

• Proactive Biz Development Tool

• Dynamic “What-If” Planning Tool

• Recurring Revenue

101


A Roadmap to Value Creation

3 Components to Build Value:

• A calculation valuation report (complies with AICPA standards)

• A company-specific value enhancement report

• A dynamic planning and value forecasting tool

- Valuation-Based Solution

102


• Income, Market & Asset Approaches to determine value

• Determine value at:

Control level

Minority interest level

• Summary level financial analysis

Recommended Calc Report Scope

100%

1%

103


Calc Valuation Specifics

• Report Template - Yours or Ours

• Your Role

- Engage and set price with client

- Upload or send docs to BV Backoffice for processing

- Sign-off and deliver to your client

104


Why a Value Enhancement Report?

Educates your client

Addresses transferable value

Shifts business thinking from lifestyleto investment

105


What’s in the Value Enhancement Report

• Understanding the Valuation

• Value Enhancement - Value Drivers- Risk Factors- Industry Comparisons

• Mapping Value Creation Strategy

106


Value Enhancement Report Specifics

Your Role:

- Set price with client (bundled with Calc Report)

- Receive report through ValuePath Plus portal

- Private-brand and deliver to your client

107


Planning Tool Features

Calculates new value scenarios

• Shows client:

- Current value from Calc Report vs.

- Projected value based on enhancement report actions

“What-if” analysis inputs for projected changes in:

• Sales, COGS, Operating Expenses

• Capital additions and changes in debt

• Changes to specific-company risk factors

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“What-If” Planning Tool Benefits

• Helps cast vision for the business owner

• Gives encouragement

• Provides motivation to implement

• Improves their leadership

• Strengthens client retention

Provides a systematic process for delivering valuation-based consulting services

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Your

client’s need

KNOW COMPANY

VALUE

BUILD COMPANY

VALUE

Product

N o t R e q u i r e d

VALUATION REPORT

ENHANCEMENT REPORT

Advisor support

FORECAST COMPANY

VALUE

+

How You Could Engage with Clients

PLANNING TOOL

N e w R e v e n u e O p p o r t u n i t y

+

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Process for Delivering ValuePath

Workflow through ValuePath Plus portal

CPA uploadsclient financial

data to Client Center

BV Backoffice completes

work, uploads back

to Client Center

CPA downloads

or prints reports for

client

CPA uses portal to deliver

Planning Tool

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Value-Pricing

…an approach that determines the value of the services provided

from the perspective of the buyer – the business-owner client.

Value is in the eye of the beholder.

Great Article: Journal of Accountancy, June 2009

“Pricing on Purpose: How to Implement Value Pricing in Your Firm” - Ron Baker, VeraSage Institute

112


Value-Pricing Suppositions

• Price and Cost are Unrelated

• Price is Entirely Determined by the Value Created for the Customer

• The Customer Does Not Care How Much the Product Costs (doesn’t really care about your billable hours)

113


On Quality and Value….

“Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality."

- Peter Drucker

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ValuePath Plus Pricing

Calculation Valuation Report

Value Enhancement

Report

Value Forecasting

Tool2

$1,795 $495 $495

$1,295 $495 ---

Product Business Valuation +

Value Enhancement Report

Initial Reports $1,995

Annual Updates $1,495

1 Actual amount charged to client determined by Valuator – can be “value-priced” 2 One-time purchase by your client for your unlimited future use

$495

Suggested Retail Pricing to Client1

Value Forecasting

Tool2

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Valuator Value Proposition

Financial

• Creates recurring revenue stream for valuation updates

• Additional planning and consulting revenues opportunities

Competitive Advantage

• Private branding strengthens firm’s core competencies

• Differentiates your firm’s service offering

Client Retention and Attraction

• Proactive, outbound business development tool

• Natural entry point to succession/exit/M&A services

• Solidifies position as Trusted Advisor - Secures Client Legacy

116


Opportunities to Offer ValuePath Plus

Low-hanging Fruit

• 20-30% of business clients who want to know company value

• Boomers looking to exit 3-5 years out

Another Strategy

• Go outbound to clients now - deliver with tax returns

• Provide enhancement consulting after busy season

Outbound to existing and new clients

• Private-branded marketing fact sheet

• Content on ValuePath Plus for your website

117


Outsourcing Defined

“Any task, operation, job or process that could be performed by you or your employees within your company, but which

is instead contracted to, or provided by, a third party.”

118


Reasons to Consider Outsourcing

Cost and Efficiency Savings

Address Resource Shortages

Ability to Concentrate on Core Strengths

Flexibility

119


What’s Available for BV Support

First Pass Valuation Report Support

• Prepare valuator’s Word and Excel doc templates

• Templates ready for analysis, edits, critical judgments, conclusions

Review-Ready Valuation Reports

• Prepare Word and Excel doc in your templates or our templates

• Templates ready for value conclusion analysis

120


Report Components Provided - Excel

Financials

• Financial Statement Spreads and RMA data

• Guideline M&A and Public Company Tables

• Ibbotson Build-Up or CAPM Discount Rates

• Capitalization of Earnings Method

• Adjusted Net Assets Method

• Discounts for Lack of Control & Marketability

121


Report Components Provided - Word

Additional Review-Ready Areas

Narratives

• Subject Company Background

• National Economic Outlook

• Regional Economic Outlook

• Industry Overview

• Introduction/Other Areas

First-Pass Report Areas

Narratives

• Financial Analysis

• Valuation Methods

• Selected Valuation Method(s)

• Valuation Adjustments

• Exhibit Preparation

122


Workflow Process

Valuator emails or uploads subject company financialdata and valuation

specifics

BV Backoffice completes initial excel valuation template

Valuator interviews

subject, sends adjustments and interview

notes to BV Backoffice

Updated excel file and draft report prepared by

BV Backoffice; iterate as necessary

123


Benefit to Valuators

Leverages Time: Redirects CPA-Valuator’s time into highest return activities

Grows Profits: Reduces cost and increases margin per work product project.

Lowers Risk: Grow BV niche without adding fixed overhead expense.

Increases Efficiency: Expands capacity through faster processing times and improved workflow

124


Sample Case Studies

Story 1: Avoiding Fixed Overhead

Story 3: Meeting Short Deadlines

Story 2: Increasing Capacity

Story 4: Just Getting Started

125


• Be sure about confidentiality

• Insure integrity

• Make sure you own the information

Tips for Valuation Outsourcing

• Get data and research in useful formats

• Insure support through project completion

126


A Tactical Step Towards Outsourcing

Define What You Do

What I Do What I Do or Need to Do That I’m Not

Great At(or I dislike doing)

List Tasks List Tasks

What I WANT to Do More of

What to Delegate (or Outsource)

127


When You’re Really Successful at Outsourcing

128


Potential Next Steps

• ValuePath Plus: - Request a ValuePath Plus marketing sheet- Request a demo of ValuePath Plus

129

Thank you.

Dave Shoquist, Principal

P.O. Box 4461, Mountain View, CA 94040

408 963 9375

e: [email protected] | www.bvbackoffice.com

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David A. Shoquist, MBA, CVA

PROFESSIONAL QUALIFICATIONS

Dave Shoquist is the founder of BV Backoffice, an appraisal support firm located in Mountain

View, California. From its inception in 2007 through 2009, the firm was a part of Brereton,

Hanley & Co., Inc. - a mid-market investment banking firm located in Campbell, CA.

Dave oversees the production of all of BV Backoffice valuation support work which has

included valuations for purposes including estate and gift tax, shareholder transactions, 409A,

ESOPS, and merger and acquisition transactions. These valuations have spanned a variety of low

and high-tech manufacturers, wholesalers, retailers, contractors and professional service firms in

a variety of industries including health care, medical equipment, software and hardware,

telecommunications, electronics, advertising, engineering, construction, and real estate.

Prior to his work in the business valuation profession, Dave served for twenty five years in

Director and Executive level finance positions for both public and privately-held companies,

including an IPO start-up. In various management capacities with emerging and rapidly growing

companies, Dave was instrumental in establishing financial planning and reporting systems,

building financial infrastructure, and establishing a track record for driving profitability. He also

performed extensive due diligence and assessment of value work in several business

acquisitions.

Dave holds a bachelor’s degree in Finance and an MBA degree from Santa Clara University, and

is credentialed by the National Association of Certified Valuators and Analysts (NACVA) as a

Certified Valuation Analyst (CVA).

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