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Can owners compensation affect a company’s value?

$225.00

SKU: VLBjf143. Category: .

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Abstract: Owners of closely held companies have significant leeway when it comes to setting their own salaries and benefits. But how does that affect business value? Often, to obtain a more accurate valuation, it’s necessary to “normalize” owners compensation. This results in an objective, unbiased owners compensation amount, which, in turn, contributes to a more credible business value. This article discusses when it is or is not appropriate to normalize owners compensation, along with the challenge of determining market compensation for an individual owner.

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