In this insightful episode, I team up with Roxanne Coffelt, an experienced CPA and business advisor, to tackle the complexities of financial management and business valuation for small businesses.
We start by addressing common financial pitfalls that business owners face, such as inadequate bookkeeping and financial management, which can lead to significant issues like IRS audits. I highlight the importance of understanding and optimizing the eight key drivers of business value, as outlined in the Value Builder System, focusing on aspects like financial performance, growth potential, and the diversification of revenue streams.
We also explore, among other topics, the concept of recurring revenue and its influence on business valuation, using practical examples like security companies with ongoing services.
Wrapping up the episode, we delve into the different approaches to business valuation, clarifying the distinction between valuation and calculation. Roxanne stresses the importance of considering a range of value drivers, including management depth and industry trends, in any valuation process. We also highlight the significance of clear agreements among business owners on valuation and sale processes, especially in multi-owner scenarios.
Roxanne wraps up by advising listeners on the importance of long-term exit planning and maintaining robust financial statements.
Roxanne Coffelt graduated cum laude from Drake University in Des Moines, Iowa in 1986 with an accounting degree. Shortly after she left behind 10 years working in the printing/publishing industry to go into public accounting.
After working for a local firm, a sole practitioner, and the “Big 6” firm Ernst & Young, Roxanne started her own practice in Des Moines in 1993.
In 1999, in anticipation of the printing plant where her husband worked closing, Roxanne sold her practice. She ended up relocating to Shanghai, China for two years.
Returning to the United States in 2004 brought Roxanne to Warsaw, Indiana. In 2010 she received her CVA (Certified Valuation Analyst) designation. After working for another firm for many years, she decided to establish her own practice in the fall of 2017.
After working for other firms, and watching people pay for financial statements that just end up filed in a drawer, Roxanne wanted to help her clients use the information in those statements to help improve their businesses.
In 2022 Roxanne became a Certified Value Builder.
Roxanne is married to her husband Bob of 38 years and has two grown children and two grandchildren. Daughter Kelsey is a board-certified behavior analyst and son Sheldon is currently in school after serving almost 7 years in the U.S. 3rd Infantry Regiment honor guard (The Old Guard) at Fort Myer/Arlington Cemetery.
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