Finance & Development Week continues
Stratus Wealth Advisors stepped up to the plate on Day Two of the 2023 Hardware & Building Supply Dealer LBM Finance & Development Week series of webcasts.
Sam Brownell, Stratus founder and owner, explained to the live audience: “With the last two years of economic turbulence, having an objective value of your company provides the foundation for effective succession planning.”
Brownell’s presentation—The Importance of Understanding Valuation—touched on the differences between equity value(value of the business to the owner) and enterprise value (the value of the business to a third party). He then walked the audience through a series of potential sales scenarios.
He set the stage with the following statistics:
• 80%: Percentage of owners who don't know the value of their business; and
• 90%: Percentage of owners who plan to fund their retirement by selling their business.
“Your business is likely your most valuable asset,” Brownell said. “Knowing the value of your business is imperative because it fuels important decision making like tax planning, funding your post ownership goals, and negotiating a sale price.”
Stratus Wealth Advisors is a financial and business consulting firm that works with LBM dealers across the country. Stratus provides business valuations and succession planning for owners who are considering selling, gifting, granting or otherwise transitioning the ownership of their company. Brownell discussed how knowing the value of your business is fundamental to your succession and retirement planning.
The “Understanding Valuation” webinar on Tuesday followed a “State of the Industry” webcast on Monday. LBM Finance & Development Week continues Wednesday, March 8, with a presentation: “Trade Credit and A/R: How to Account for Price Fluctuations in an Uncertain Market.”
Wednesday’s presentation will be led by Rick Butler of BlueTape, the payment and financing solution for construction professionals and building material dealers.
Against the backdrop of an uncertain construction market, steep price fluctuations, the presentation will explain how to leverage trade credit and accounts receivable to benefit your business no matter what the future has in store.
The noon webcast addresses the idea that material suppliers need a plan of action for navigating an inconsistent supply chain, and asks: “What is the solution to the industry’s cash flow issues?”
