Sun Current http://current.mnsun.com Local News for Bloomington, Eden Prairie, Edina and Richfield Minnesota Fri, 04 Sep 2015 21:07:38 +0000 en-US hourly 1 Edina police report Aug. 17-23 http://current.mnsun.com/2015/09/edina-police-report-aug-17-23/ http://current.mnsun.com/2015/09/edina-police-report-aug-17-23/#comments Fri, 04 Sep 2015 21:07:38 +0000 http://current.mnsun.com/?p=152091 For Aug. 17-23, the Edina Police Department answered the following calls:

Aug. 17 – Burglary was reported on the 6400 block of West Shore Drive. Tools valued $480 were taken.

Tamper with auto was reported on the 3100 block of Heritage Drive. A vehicle door was pried.

Aug. 18 – An unwanted guest was reported on the 3200 block of 76th Street.

Fraudulent use of account information was reported on the 6400 block York Avenue.

A dog bite was reported on the 5500 block of Malibu Drive.

Theft was reported on the 6500 block of France Avenue. Propane tanks and gas cans valued $518 were taken.

Theft of medications valued $1,887 was reported on the 5700 block of Xerxes Avenue. The items were reportedly taken from a doorstep by an unknown person.

Aug. 19 – Theft of a bicycle valued $100 was reported on the 4500 block of Wooddale Avenue.

A domestic assault and interfering with an emergency call was reported on the 3900 block of 50th Street.

An Edina resident was arrested for fourth-degree DWI at York Avenue and Parklawn Avenue.

Aug. 20 – Suspicious activity was reported on the 3800 block of Gallagher Drive.

A Hopkins resident was arrested for third-degree DWI at Highway 169 and Valley View Road.

A Champlin resident was arrested for burglary on the 4900 block of France Avenue.

A Burnsville resident and a Maplewood resident were arrested for burglary at Southdale Center.

Theft from auto was reported on the 5100 block of Wooddale Avenue.

A laptop was taken by an unknown person.

Aug. 21 – A Bloomington resident was arrested for fourth-degree DWI at Highway 100 and 50th Street.

Theft was reported on the 6300 block of Barrie Road. Sports equipment was taken.

Theft was reported on the 6300 block of Barrie Road. Tools valued $230 were taken.

Theft from auto was reported on the 6300 block of Barrie Road.

Theft was reported on the 7000 block of France Avenue. A laptop valued $1,500 was taken.

A 2004 Chrysler 300M valued $6,900 was reportedly stolen.

Two 13-year-olds were arrested for theft of $492 in clothing from Southdale.

A Minneapolis resident was arrested for possession of a small amount of marijuana at Highway 62 and Tracy Avenue.

An Apple Valley resident was arrested for third-degree DWI at Highway 62 and France Avenue.

Aug. 22 – An Edina resident was arrested for 4th-degree DWI at Highway 62 and Tracy Avenue.

Theft of a phone valued $600 was reported on the 4500 Lakeview Drive.

Fraud was reported on the 6900 block of York Avenue. An attempt to pass a counterfeit bill was reported at CVS.

Two Minneapolis residents were arrested for theft of clothing valued $19 from Southdale.

Aug. 23 – An Edina resident was arrested for third-degree DWI on the 7200 block of Braemar Boulevard.

A New Auburn, Minn., resident was arrested for fourth-degree DWI at Highway 100 and 70th Street.

A verbal domestic incident was reported on the 5200 block of Villa Way.

Damage to property was reported on the 7100 block of York Avenue. The window of a vehicle was reported as smashed. ]]> http://current.mnsun.com/2015/09/edina-police-report-aug-17-23/feed/ 0 From Edina to the Smoky Mountains to Florida http://current.mnsun.com/2015/09/from-edina-to-the-smoky-mountains-to-florida/ http://current.mnsun.com/2015/09/from-edina-to-the-smoky-mountains-to-florida/#comments Fri, 04 Sep 2015 20:57:39 +0000 http://current.mnsun.com/?p=152081  

Friends Jean Caizzo, background, and Lisa Hawks, foreground, began riding motorcycles nearly two decades apart, but they have recently joined each other on road trips to the east coast through the Midwest. (Submitted photo by Lissa Rurik)
Friends Jean Caizzo, background, and Lisa Hawks, foreground, began riding motorcycles nearly two decades apart, but they have recently joined each other on road trips to the east coast through the Midwest. (Submitted photo by Lissa Rurik)

There is no other feeling like it, and there are multiple ways to get there. Unrestricted views while traveling winding roads; the smell of hot pine; the required alertness while captaining 700 pounds of metal, rubber, gas and gears below.

“… If I had to explain, you wouldn’t understand,” says Edina resident and motorcyclist Jean Caizzo. She read that on a t-shirt, but it works.

She and her friend Lisa “Bird” Hawks have each blazed their own trail to motorcycle riding, and they have some advice for women and men who are looking to get into the pastime themselves.

Caizzo has been riding a motorcycle for 19 years, and Hawks, a fellow Edina resident, got her start one year ago.

When Caizzo started riding with her husband in 1996, the two shared a motorcycle before they were able to acquire Caizzo’s first of four successive Harley Davidsons. They were back ordered at the time, and it took a couple years to get one, Caizzo said.

Hawks spent some of her lunch breaks at a Harley dealership learning to work a clutch, wearing her corporate suit. She practiced getting out of her driveway. She mapped alternate routes in her neighborhood to avoid hills until she was comfortable. She took on a new riding skill every weekend.

“It just proves that a woman in her middle age can learn how to ride a motorcycle if you’re determined enough,” she said.

After a while, getting out of the driveway and through neighborhood hills was not a problem.

“My first year of riding I did just over 10,000 miles of riding,” she said. “… I feel comfortable. I feel safe. I have fun.”

And when difficulties arise, all of that preparation can prevent disaster, as they did in the Smoky Mountains during Caizzo and Hawks’ ride to Florida in October 2014, .

Caizzo chronicled a portion of the trip on a particularly foggy late afternoon night:

“The Skyline Drive, well known to motorcycle enthusiasts, covers one-hundred-five miles. Following the winding, single-lane road upward, the vapor thickened, enveloping us in a blanket of white oblivion. On the opposite side of the road, impatient drivers racing to reach the northern exit of the park seemed to appear out of nowhere. They startled us as they often crossed the middle of the road into our path.”

They had an hour to their destination in Waynesboro, Virginia, and less than that before nightfall, making the trek in fog even more dangerous, Caizzo wrote. They drove past deer and bears through patches of clarity and then fog, until they had to pull over at a bar and restaurant. It was closed.

One cell phone had no reception, the other was dead, according to Caizzo’s account. It was getting dark, hard to see even with headlights, and they could not get a hold of anyone.

Just as they wondered how to get to their inn, a Jeep pulled up. A man offered to lead the way through a winding, hilly roadway to the resort. His familiarity with the road also meant he could comfortably drive at a fast pace.

For Hawks, who followed directly behind him, not so much.

“Really fast, in the dark, in the fog – I thought I was going to die,” Hawks said. “He was driving so quickly, and I couldn’t see where I was going.”

The trouble, however, did not come from traveling too fast, too close or not being able to see.

It again came down to a driveway and physics. Near the destination, on a steep, gravel driveway traveling less than five miles an hour, Hawks tipped.

As anyone who has ridden a bicycle knows: “In order to stay up you gotta pedal.”

The fundamentals of motorcycling and physics remain constant: understanding relationships and facing the forces that counteract a desire to remain in motion.

Contact Paul Groessel at paul.groessel@ecm-inc.com or follow the Sun Current on Twitter
@EdinaSunCurrent

 
]]>
http://current.mnsun.com/2015/09/from-edina-to-the-smoky-mountains-to-florida/feed/ 0
Seminar on ADHD Sept. 14 in Eden Prairie http://current.mnsun.com/2015/09/seminar-on-adhd-sept-14-in-eden-prairie/ http://current.mnsun.com/2015/09/seminar-on-adhd-sept-14-in-eden-prairie/#comments Fri, 04 Sep 2015 20:15:26 +0000 http://current.mnsun.com/?p=152057 The SW Metro ADHD Connection will host a meeting 7-8:30 p.m. Monday, Sept. 14, at the Eden Prairie Center Community Room, 8251 Flying Cloud Drive.

The event is free, and CEU clock hours are available.

National speaker, author, parent coach and licensed psychologist Toni Schutta will present “Create a Mindset for Success in Your Child.”

Info: email sw-metro@chadd.net ]]> http://current.mnsun.com/2015/09/seminar-on-adhd-sept-14-in-eden-prairie/feed/ 0 Labor Day and Its Meaning http://current.mnsun.com/2015/09/labor-day-and-its-meaning/ http://current.mnsun.com/2015/09/labor-day-and-its-meaning/#comments Fri, 04 Sep 2015 19:52:57 +0000 http://current.mnsun.com/?guid=0bc317d3c0fe4f0ad1a46e10d5146bf5 The national holiday we celebrate on Monday is a good time for reflection on why we work and what we derive from it. The answer should be that it gives your life energy and meaning. If it doesn’t, you should change that.

Labor Day marks the unofficial end of summer. Summer trips wind down, students leave for college and football season gears up. In the South particularly, where I live, we anticipate the cooler days of fall with enthusiasm. The long weekend is marked for rest and recreation as we ponder the meaning and significance of labor and work.

The Central Labor Union organized the first Labor Day in 1882. Aimed at promoting trade unions, parades and festivals amused workers and their families. Labor Day became a federal holiday in 1894, a welcome addition to fill the gap between Independence Day and Thanksgiving.

Most agree that meaningful work is a major component of human well being. It does not matter whether the work is paid, volunteer or pro- bono, or work at home to nurture a family. Work matters.

A human being without purpose is a lost soul. “A life well-lived” is the stuff of advertising, self-help books and the psychiatrist’s couch. The scientists at the Gallup organization have been exploring the subject since the mid-20th century. A not-so-startling finding: Our happiness and feelings of well-being are a function of liking what we do each day.

As Tom Rath and Jim Harter explain in their book, Well Being: The Five Essential Elements (Gallup Press, 2010), “At a fundamental level, we all need something to do, and ideally something to look forward to, when we wake up each day. What you spend your day doing each day shapes your identity, whether you are a student, parent, volunteer, retiree or have a more conventional job.”

That makes sense. Yet only 20% gave a strong “yes” when Gallup researchers asked over and over, “Do you like what you do each day?”  If 80% are unhappy with daily activities, the rest of their life is likely to be out of whack. Certainly, financial well-being will suffer; so will physical, social and community well-being.

Ask someone what well-being means to them and most, guys especially, will focus on money and physical fitness. But if you are to successfully navigate a life transition, relationships and social connections, and your sense of place, that you are where you belong in terms of where you live and work and interact with friends and people, and your spiritual home, are key components of well-being. In other words, career, financial, physical, social, and community well-being are part of a balanced continuum.

Authors Rath and Harter also wrote the national bestseller, StrengthsFinder 2.0. Propaganda extolling workers, plus many union labels and graphics, incorporate symbols of strength. StrengthsFinder, personal introspection widely applied in business and churches, indicates that, when well-being suffers, when you are unhappy with your day, you are not applying your strengths. You may have a job or assigned task, but are you in the right role?

When you reinforce God-given talent with knowledge and skill, you have a strength. A talent is a naturally recurring pattern of thought, feeling or behavior productively applied. A skill is the ability to move through the fundamental steps of a task. Knowledge is what we know.

A strength, then, is a powerful, productive combination of talent, skill and knowledge. When you are doing anything from strength, you feel it, you know it, and you love it. Boredom and frustration have no place in your day.

This Labor Day weekend, if you want to recalibrate and infuse your life with new energy, a revitalized sense of purpose, and a sense of holistic well-being, read the these two short but powerful books.

Take the assessment offered and then talk to an advisor familiar with the StrengthsFinder process. Financial advisors focused on life transitions planning increasingly are using diagnostics and alliances with coaches to increase their own sense of well-being, along with that of their clients.

Winifred Holtby (1898-1935) was an English novelist and journalist, best known for her novel South Riding. Her epitaph reads, “God give me work, till my life shall end, And life, till my work is done.” After you say grace at your Labor Day picnic, add Winifred’s prayer to your wishes and resolutions.

Happy Labor Day.

Follow AdviceIQ on Twitter at @adviceiq.

Lewis Walker, CFP, is president of Walker Capital Managemen, LCC in Peachtree Corners, Ga. Securities and certain advisory services offered through The Strategic Financial Alliance Inc. (SFA). Lewis Walker and Mike Hostetler are registered representatives of the SFA, which is otherwise unaffiliated with Walker Capital Management. 770-441-2603. lewisw@theinvestmentcoach.com.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

 

 

 

 

]]> The national holiday we celebrate on Monday is a good time for reflection on why we work and what we derive from it. The answer should be that it gives your life energy and meaning. If it doesn’t, you should change that.

Labor Day marks the unofficial end of summer. Summer trips wind down, students leave for college and football season gears up. In the South particularly, where I live, we anticipate the cooler days of fall with enthusiasm. The long weekend is marked for rest and recreation as we ponder the meaning and significance of labor and work.

The Central Labor Union organized the first Labor Day in 1882. Aimed at promoting trade unions, parades and festivals amused workers and their families. Labor Day became a federal holiday in 1894, a welcome addition to fill the gap between Independence Day and Thanksgiving.

Most agree that meaningful work is a major component of human well being. It does not matter whether the work is paid, volunteer or pro- bono, or work at home to nurture a family. Work matters.

A human being without purpose is a lost soul. “A life well-lived” is the stuff of advertising, self-help books and the psychiatrist’s couch. The scientists at the Gallup organization have been exploring the subject since the mid-20th century. A not-so-startling finding: Our happiness and feelings of well-being are a function of liking what we do each day.

As Tom Rath and Jim Harter explain in their book, Well Being: The Five Essential Elements (Gallup Press, 2010), “At a fundamental level, we all need something to do, and ideally something to look forward to, when we wake up each day. What you spend your day doing each day shapes your identity, whether you are a student, parent, volunteer, retiree or have a more conventional job.”

That makes sense. Yet only 20% gave a strong “yes” when Gallup researchers asked over and over, “Do you like what you do each day?”  If 80% are unhappy with daily activities, the rest of their life is likely to be out of whack. Certainly, financial well-being will suffer; so will physical, social and community well-being.

Ask someone what well-being means to them and most, guys especially, will focus on money and physical fitness. But if you are to successfully navigate a life transition, relationships and social connections, and your sense of place, that you are where you belong in terms of where you live and work and interact with friends and people, and your spiritual home, are key components of well-being. In other words, career, financial, physical, social, and community well-being are part of a balanced continuum.

Authors Rath and Harter also wrote the national bestseller, StrengthsFinder 2.0. Propaganda extolling workers, plus many union labels and graphics, incorporate symbols of strength. StrengthsFinder, personal introspection widely applied in business and churches, indicates that, when well-being suffers, when you are unhappy with your day, you are not applying your strengths. You may have a job or assigned task, but are you in the right role?

When you reinforce God-given talent with knowledge and skill, you have a strength. A talent is a naturally recurring pattern of thought, feeling or behavior productively applied. A skill is the ability to move through the fundamental steps of a task. Knowledge is what we know.

A strength, then, is a powerful, productive combination of talent, skill and knowledge. When you are doing anything from strength, you feel it, you know it, and you love it. Boredom and frustration have no place in your day.

This Labor Day weekend, if you want to recalibrate and infuse your life with new energy, a revitalized sense of purpose, and a sense of holistic well-being, read the these two short but powerful books.

Take the assessment offered and then talk to an advisor familiar with the StrengthsFinder process. Financial advisors focused on life transitions planning increasingly are using diagnostics and alliances with coaches to increase their own sense of well-being, along with that of their clients.

Winifred Holtby (1898-1935) was an English novelist and journalist, best known for her novel South Riding. Her epitaph reads, “God give me work, till my life shall end, And life, till my work is done.” After you say grace at your Labor Day picnic, add Winifred’s prayer to your wishes and resolutions.

Happy Labor Day.

Follow AdviceIQ on Twitter at @adviceiq.

Lewis Walker, CFP, is president of Walker Capital Managemen, LCC in Peachtree Corners, Ga. Securities and certain advisory services offered through The Strategic Financial Alliance Inc. (SFA). Lewis Walker and Mike Hostetler are registered representatives of the SFA, which is otherwise unaffiliated with Walker Capital Management. 770-441-2603. lewisw@theinvestmentcoach.com.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

 

 

 

  ]]> http://current.mnsun.com/2015/09/labor-day-and-its-meaning/feed/ 0 Valuing a Business Stupidly http://current.mnsun.com/2015/09/valuing-a-business-stupidly/ http://current.mnsun.com/2015/09/valuing-a-business-stupidly/#comments Fri, 04 Sep 2015 16:52:57 +0000 http://current.mnsun.com/?guid=6ea90854cd380f22b87e1984278d44ee Buying and selling a business, particularly a smaller one, rests on what its value is. Trouble is, some of the most widely used are very complex and end up wide of the mark. Based on sheer guesswork, these methods, particularly discounted cash flow, make the deals end in sorrow.

I find it amusing when I hear about an acquirer using discounted cash flow as a method to value a targeted business. That’s when I know there is a very good chance the buyer will get a great deal and the acquisition will fail financially.

What is discounted cash flow? This jargon term describes a very complicated and misguided way of valuing a business. It is especially misleading when assessing a small business.

When people use discounted cash flow (DCF), they are saying that a stream of cash will have a certain value in time. The guesses – and I do mean guesses – that they use are: What the interest rate will be, the discount to put on a business based on its risk (the more dicey the odds, the more they mark its value down), the enterprise’s projected growth rate, and its expected cash flow or EBITDA (earnings before interest, taxes, depreciation and amortization).

This information then goes into a formula where a value of your company will emerge. I can only tell you one thing about this method of valuation, it’ll be wrong. The value will either be too high or too low.

Why is it flawed when valuing a small business? There are many reasons that discounted cash flow isn’t going to work for your business. Here are just some of them:

  • The growth rate that’s being used will be wrong.
  • The cash flow that’s produced could very possibly be an anomaly.
  • Nothing happens in a straight line with a business.
  • Private businesses are just unpredictable.
  • Your growth will be too low to get a reasonable valuation.

When you look at this list, you’ll see something in common. The reasoning behind DCF depends on the predictability in your business. If your business is anything like all those I see, there is little to no predictability in almost all smaller private businesses.

Some other problems:

You’re not paying for what the business will do. Every time I bought a business with a purchase price based on what was going to happen, I got burned. When I decided to only pay for what the owner had produced, I started getting deals that actually paid off.

I learned that you’re not paying for what will happen. You should only pay for what’s happened in the past. That’s what the seller of a business is selling.

If your seller isn’t willing to value his business on that basis, it’s time for you to move on

Most people won’t understand DCF. It took me a long time to understand how discounted cash flow works. Whether you’re a buyer or seller, if you don’t understand how someone is valuing your business, you could be in for a very rude awakening.

I hate it when advisors of any stripe tell you that you just have to trust them. All this means is the advisors don’t understand a technique well enough to explain what they’re doing in terms you can easily understand.

When your advisor can’t translate any strategy to plain English, you’re in trouble. If you don’t understand what’s used to value a business you’re interested in, you either need to stay with it till you understand or just move on.

If you’re holding debt, you really want a deal that works.. I also often see buyers wildly overvalue a business using DCF. Most of the time, those buyers have formal training in a business school

If you see that your business is overvalued and you’re going to play banker for a significant portion of the sale, you should be very careful. When a business is overvalued, it’s only a matter of time before your payments slow or even stop.

A good question to ask yourself is: If you were going to buy a business you were selling, would you pay the price you’re asking? If the answer is no and you’re holding paper, you should expect problems down the road

If you’re selling to a private equity group, beware. Many times private equity firms use DCF to value your business – and use your last year or two as a guideline for what’s going to happen in the future. If you’ve been fortunate and your company has grown at a 20% clip, you could receive a very nice offer for your business.

If you accept the offer, be aware that two unfortunate things that might happen. The first is you’ll be replaced as CEO if your growth doesn’t continue. A 20% annual growth year after year is a very difficult thing to do.

And second: Look out if you took part of the purchase price in stock, or lent money to the acquirer to finance the deal. Should your company not perform the way your private equity groups think it should, there’s a good chance they’ll just stop paying you or make the value of your stock useless. Then you’re either going to accept the change or start a legal action.

The best advice when selling or buying a business: Keep it simple and you’ll be happier.

It’s just easier to use historical numbers to figure out what you’re going to pay for a business. Keep your valuation process simple and one that you understand. In the end you’ll buy or sell at a fair price.

Follow AdviceIQ on Twitter at @adviceiq.

Josh Patrick is a founding principal of Stage 2 Planning Partners in South Burlington, Vt. He contributes to the NY Times You’re the Boss blog and works with owners of privately held businesses helping them create business and personal value. You can learn more about his Objective Review process at his website.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

]]> Buying and selling a business, particularly a smaller one, rests on what its value is. Trouble is, some of the most widely used are very complex and end up wide of the mark. Based on sheer guesswork, these methods, particularly discounted cash flow, make the deals end in sorrow.

I find it amusing when I hear about an acquirer using discounted cash flow as a method to value a targeted business. That’s when I know there is a very good chance the buyer will get a great deal and the acquisition will fail financially.

What is discounted cash flow? This jargon term describes a very complicated and misguided way of valuing a business. It is especially misleading when assessing a small business.

When people use discounted cash flow (DCF), they are saying that a stream of cash will have a certain value in time. The guesses – and I do mean guesses – that they use are: What the interest rate will be, the discount to put on a business based on its risk (the more dicey the odds, the more they mark its value down), the enterprise’s projected growth rate, and its expected cash flow or EBITDA (earnings before interest, taxes, depreciation and amortization).

This information then goes into a formula where a value of your company will emerge. I can only tell you one thing about this method of valuation, it’ll be wrong. The value will either be too high or too low.

Why is it flawed when valuing a small business? There are many reasons that discounted cash flow isn’t going to work for your business. Here are just some of them:

  • The growth rate that’s being used will be wrong.
  • The cash flow that’s produced could very possibly be an anomaly.
  • Nothing happens in a straight line with a business.
  • Private businesses are just unpredictable.
  • Your growth will be too low to get a reasonable valuation.

When you look at this list, you’ll see something in common. The reasoning behind DCF depends on the predictability in your business. If your business is anything like all those I see, there is little to no predictability in almost all smaller private businesses.

Some other problems:

You’re not paying for what the business will do. Every time I bought a business with a purchase price based on what was going to happen, I got burned. When I decided to only pay for what the owner had produced, I started getting deals that actually paid off.

I learned that you’re not paying for what will happen. You should only pay for what’s happened in the past. That’s what the seller of a business is selling.

If your seller isn’t willing to value his business on that basis, it’s time for you to move on

Most people won’t understand DCF. It took me a long time to understand how discounted cash flow works. Whether you’re a buyer or seller, if you don’t understand how someone is valuing your business, you could be in for a very rude awakening.

I hate it when advisors of any stripe tell you that you just have to trust them. All this means is the advisors don’t understand a technique well enough to explain what they’re doing in terms you can easily understand.

When your advisor can’t translate any strategy to plain English, you’re in trouble. If you don’t understand what’s used to value a business you’re interested in, you either need to stay with it till you understand or just move on.

If you’re holding debt, you really want a deal that works.. I also often see buyers wildly overvalue a business using DCF. Most of the time, those buyers have formal training in a business school

If you see that your business is overvalued and you’re going to play banker for a significant portion of the sale, you should be very careful. When a business is overvalued, it’s only a matter of time before your payments slow or even stop.

A good question to ask yourself is: If you were going to buy a business you were selling, would you pay the price you’re asking? If the answer is no and you’re holding paper, you should expect problems down the road

If you’re selling to a private equity group, beware. Many times private equity firms use DCF to value your business – and use your last year or two as a guideline for what’s going to happen in the future. If you’ve been fortunate and your company has grown at a 20% clip, you could receive a very nice offer for your business.

If you accept the offer, be aware that two unfortunate things that might happen. The first is you’ll be replaced as CEO if your growth doesn’t continue. A 20% annual growth year after year is a very difficult thing to do.

And second: Look out if you took part of the purchase price in stock, or lent money to the acquirer to finance the deal. Should your company not perform the way your private equity groups think it should, there’s a good chance they’ll just stop paying you or make the value of your stock useless. Then you’re either going to accept the change or start a legal action.

The best advice when selling or buying a business: Keep it simple and you’ll be happier.

It’s just easier to use historical numbers to figure out what you’re going to pay for a business. Keep your valuation process simple and one that you understand. In the end you’ll buy or sell at a fair price.

Follow AdviceIQ on Twitter at @adviceiq.

Josh Patrick is a founding principal of Stage 2 Planning Partners in South Burlington, Vt. He contributes to the NY Times You’re the Boss blog and works with owners of privately held businesses helping them create business and personal value. You can learn more about his Objective Review process at his website.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

  ]]> http://current.mnsun.com/2015/09/valuing-a-business-stupidly/feed/ 0 Edina tennis dynasty still going http://current.mnsun.com/2015/09/edina-tennis-dynasty-still-going/ http://current.mnsun.com/2015/09/edina-tennis-dynasty-still-going/#comments Fri, 04 Sep 2015 16:19:16 +0000 http://current.mnsun.com/?p=152074 As the battle for the White House heats up on the campaign trail and on the debate stage, it’s business as usual for the Edina High School girls tennis team.

Co-captain Katie Engelking, hitting a backhand volley above, is one of the capable veterans in the Edina High girls tennis line-up. To put the EHS tennis dynasty in perspective, the Hornets have been the state Class AA champions every year since Engelking was born. (Sun Current staff photo by John Sherman)
Co-captain Katie Engelking, hitting a backhand volley above, is one of the capable veterans in the Edina High girls tennis line-up. To put the EHS tennis dynasty in perspective, the Hornets have been the state Class AA champions every year since Engelking was born. (Sun Current staff photo by John Sherman)

Throughout Bill Clinton’s second Presidential term, continuing through the George W. Bush administration and spanning well into Barack Obama’s second term, no team but Edina has been Minnesota’s state Class AA girls tennis champion.

Edina’s streak of 18 years is headed for uncharted territory, and even though the Hornets have had a target on their backs for a long time now, there’s no end in sight for their championship domination.

Every so often there is a speed bump, like a loss to Wayzata in a recent Edina Invitational. But at playoff time, the Hornets always seem to have the right mix of confidence and charisma to get the job done.

“We talk about the streak,” said Edina’s sophomore first singles player Sophia Reddy. “I think winning all those championships in the past adds confidence more than pressure.”

“The streak gives us a goal every year,” said Edina’s senior co-captain, Katie Engelking, who has already played on four state-champion Hornet teams.

The Hornets will have their first big test of the season at 3:45 p.m. Thursday, Sept. 3, when they entertain Blake on the Edina Community Center courts.

Hornet head coach Steve Paulsen is wary of playing a tough opponent so early in the season, yet he knows tough competition will steel his team for the upcoming Lake Conference schedule.

“It is going to be a battle,” said Paulsen. “Blake has a very good first singles player, Libby Rickeman, and I think most of their team is back,”

Edina hosted a doubles scrimmage on Aug. 26, and that gave Paulsen a chance to see 12 of his players in action.

“We were able to look at some different combinations,” he said. “It was a good start to the season.”

Since it was only a scrimmage, Paulsen didn’t have scores to report, but he was happy with the way the Hornets played.

His top two doubles entries consisted of Reddy with eight-grader Nicole Copeland and Engelking with her longtime partner, senior co-captain Hannah Hankinson.

Paulsen paired two returning letter winners, sophomore Margaux Boyer and junior Isabelle Ouyang in the third sport. For the fourth position, he teamed two juniors, Sophie Slattery and Fatima Gaito.

The final two Hornet teams consisted of seniors Lily Weigel and Yochana Kancherla and eighth-graders Jessica Ip and Shaylynn Reger.

Edina was set to host a position tournament Aug. 28, but a hard rain in the early morning prompted Paulsen to cancel the event.

The Hornets would have seen players from Minnetonka and Wayzata, as well as from Blake, in that event.

It should be an interesting season in Lake Conference tennis, even though Eden Prairie, Hopkins, Minnetonka and Wayzata all graduated some of their top talent. The scenario is about the same as it was in the early years of the Clinton White House, with Edina on top and every other team trying to figure out a way to upset the Hornets.

Contact John Sherman at john.sherman@ecm-inc.com ]]> http://current.mnsun.com/2015/09/edina-tennis-dynasty-still-going/feed/ 0 Eagles look to bounce back in 2015 season http://current.mnsun.com/2015/09/eagles-look-to-bounce-back-in-2015-season/ http://current.mnsun.com/2015/09/eagles-look-to-bounce-back-in-2015-season/#comments Fri, 04 Sep 2015 16:16:06 +0000 http://current.mnsun.com/?p=152072 A high school volleyball program that finished 1-13 the previous year is not typically a popular draw for incoming coaches.

Jon Hackbarth, however, did not feel that way and chose to become the new face of Bloomington Kennedy’s volleyball program. Hackbarth previously worked with Park High School in Cottage Grove and has spent six years coaching club volleyball.

“I’m very excited to be a part of this program,” Hackbarth said.

Hackbarth also brought in almost a completely different coaching staff than the Eagles had last season.

“I was able to draw some good people together,” Hackbarth said. “So far there’s been some pretty good cohesion between the players and the coaches.”

While the coaching staff will consist of many new faces, the team will continue to be led by their seniors and other returning players that have become immersed with the eagles’ volleyball culture.

“There’s some good senior leadership on the team,” Hackbarth said. “There’s some solid returning players that have been with the program for a while.”

Seniors Ella Swnyder, Lindsey Schmidt and Danielle Devery, the team’s three co-captains, are the players that Hackbarth expects to step up the most this season.

Hackbarth will need to count on the continued development of his team while also witnessing growth from the younger players in order for Kennedy to improve on last season’s 1-13 record.

“I’m hoping to see the court chemistry build on the court and off the court as the season goes on,” Hackbarth said.

Hackbarth does not focus much on a team’s overall record, but he wants to ensure that his team will play as hard as possible while on the court. This year’s team adopted the motto “expect excellence and play with passion,” two factors that will be key when the team is looking back on their season.

Even if the Eagles play up to their expectations, they will still have to face teams from the talented Metro West conference, including Chaska, last year’s state champion.

“It’s a good conference,” Hackbarth said. “I know where they were last year, but the expectation is to compete every night and leave everything on the floor.”

Hackbarth does not know how well his team will perform this year, but he wants to make certain that his squad will consist of the hardest working players on the court.

“I would hope to be competing with every team we play,” Hackbarth said. “I’m hoping we end up in the middle of the pack.

“If we’re going to walk off the court with a loss it’s going to be because another team out-played us or out-performed us and not because they out-worked us.”

Kennedy will take the court for their first home match 7 p.m. Thursday, Sept. 3 at 7, against Minneapolis South.

Contact Chris Chesky at chris.chesky@ecm-inc.com. Follow him on Twitter at @MNSunSports. ]]> http://current.mnsun.com/2015/09/eagles-look-to-bounce-back-in-2015-season/feed/ 0 Holy Angels tennis looks to build off strong 2014 season http://current.mnsun.com/2015/09/holy-angels-tennis-looks-to-build-off-strong-2014-season/ http://current.mnsun.com/2015/09/holy-angels-tennis-looks-to-build-off-strong-2014-season/#comments Fri, 04 Sep 2015 16:11:36 +0000 http://current.mnsun.com/?p=152069 One season removed from finishing second in the Tri-Metro conference after posting a 6-1 record against conference opponents, Holy Angels head tennis coach Steve Werle is confident that his team can find a way to replicate that success this season.

Jessie Tschida is expected to be one of Holy Angels’ top performers as she develops. (Sun Current staff photo by Chris Chesky)
Jessie Tschida is expected to be one of Holy Angels’ top performers as she develops. (Sun Current staff photo by Chris Chesky)

“We should probably be in the same position,” Werle said. “I don’t see anybody rivaling us for that second spot right now.”

Werle definitely has many reasons to be confident. His team is filled with talented, athletic girls, and last year’s team MVP Lucia Anderson is one of the team’s top returning players.

“Lucia always seemed to pull through when we were at that 3-3 tie and she came through with the fourth win to get over the hump,” teammate Siri Roberts said.

Anderson, Roberts and Tristan Jensen are the team’s three returning All-Conference players, while Anderson and jensen have been named the team’s two captains.

“They’re great leaders and great captains,” Werle said.

Anderson is hoping that her presence on the court will help push some of the team’s newcomers to work harder.

“We have a lot of new players and some girls coming out for the first time,” Anderson said. “We’ll have to try to get the team built up again, as we lost a few seniors.

“We won’t expect much other than their full effort.”

The team consists of seven seniors, but only three of them have previously played tennis at the high school level. Holy Angels will field a younger team this year, as there are no juniors and five combined sophomores and freshmen.

One of the freshmen that Werle expects to step up the most is singles player Jessie Tschida.

“She’s got a lot of natural ability and I look forward to seeing her develop with more match play,” Werle said.

This will be Werle’s seventh season at the helm for the Holy Angels tennis program and he is hoping to ride the leadership of his seniors and the development of the team’s younger players to another promising finish within the conference.

Holy Angels got off to a rough start to begin the season, losing their first match of the season to Lakeville South and coming in third at the Richfield all-doubles tournament.

The Stars will look to bounce back in their next match against Minnehaha Academy 4 p.m. Thursday, Sept. 3, at the Academy of Holy Angels.

Contact Chris Chesky at chris.chesky@ecm-inc.com. Follow him on Twitter at @MNSunSports. ]]> http://current.mnsun.com/2015/09/holy-angels-tennis-looks-to-build-off-strong-2014-season/feed/ 0 Jefferson tennis has mixed results in first matches http://current.mnsun.com/2015/09/jefferson-tennis-has-mixed-results-in-first-matches/ http://current.mnsun.com/2015/09/jefferson-tennis-has-mixed-results-in-first-matches/#comments Fri, 04 Sep 2015 16:04:03 +0000 http://current.mnsun.com/?p=152066 It is rare to play an opposing non-conference tennis team twice in a season, let alone in one week. It is even more rare to not have one of the team’s top two players available for the two games.

From left, Hannah Campbell, Rachel Knutson and Marisa Lerom are the Jaguars three girls tennis captains this year. (Submitted photo)
From left, Hannah Campbell, Rachel Knutson and Marisa Lerom are the Jaguars three girls tennis captains this year. (Submitted photo)

That was the case for the Bloomington Jefferson tennis team last week, as they faced off against Burnsville twice, losing both times without Hannah Campbell available on Aug. 26 and Anne Miller on Aug. 29.

The week started off well for the Jaguars, as they defeated Apple Valley 4-3 on Aug. 25 to begin their season. The doubles groups of Rachel Knutson and Miller, Campbell and Marisa Lerom, Callie Koleske and Sarah Hansen, and singles player Abbie Hagen won their matches to help lead the Jaguars to the victory.

Things did not go as well for the Jaguars on Aug. 26, as the team was unable to overcome the loss of Campbell in their 4-3 loss to Burnsville.

The Jaguars continued their decent play on Aug. 29 at Richfield High School’s doubles tournament, finishing second behind Burnsville. Jefferson defeated Holy Angels 6-0 and Richfield 4-2, but lost to Burnsville 4-2.

Knutson, seventh-grader Isabelle Lynch and Koleske were undefeated for the Jaguars.

This season appears as if it could be a successful year for the Jaguars, as the team has six returning letter winners, including co-captains Knutson, Campbell and Lerom. The three co-captains have also been with the varsity squad for over three years and involved with the program since they were in seventh grade.

“We are excited for the season,” Jaguars head coach Lynn Larson said. “We are hoping to improve on our third place finish in the Metro West conference. The program is growing. We are one of only two schools in the Metro West conference that has three levels of team, and we have over 45 girls playing this year.”

Larson expects her top singles players to be Campbell, Plaman, and Lynch, while Miller, Knutson, Lerom and Koleske are projected to be the team’s top doubles players.

The Jaguars will pay next against Minneapolis Southwest 4 p.m. Thursday, Sept. 3, at Bloomington Jefferson High School.

Contact Chris Chesky at chris.chesky@ecm-inc.com. Follow him on Twitter at @MNSunSports. ]]> http://current.mnsun.com/2015/09/jefferson-tennis-has-mixed-results-in-first-matches/feed/ 0 What Will Inflation Be? http://current.mnsun.com/2015/09/what-will-inflation-be/ http://current.mnsun.com/2015/09/what-will-inflation-be/#comments Fri, 04 Sep 2015 13:52:59 +0000 http://current.mnsun.com/?guid=0c7d524353bec47121cf41a38e5e2693 What will inflation be in coming years? The real answer is that it varies according to your age and spending patterns. Inflation wallops someone with kids in college, and is hardly noticeable to stay-at-home types. Another consideration: Do you buy more goods  (whose prices are going down) than services (going up, mostly).

Inflation is a sustained increase in prices for general goods and services in the economy and is typically measured annually. Theoretically speaking, as inflation rises, every dollar you own buys a smaller amount of a good or service. 

While the reported inflation rate (typically reported as the CPI or Consumer Price Index) is important for Social Security income calculations, which rise with the index, it may not accurately reflect your individual inflation rate.

According to the Wall Street Journal, the overall inflation rate is running less than 2% per year, but that figure masks a division between goods and services. 

The cost of services is climbing while prices for goods are declining. For example, a man's suit is 3.7% cheaper than it was in 2010 but 9.2% more expensive to dry clean. TV prices have fallen nearly 58% over the same period, while cable TV service costs 13.7% more.  

Similarly, the inflation rate for higher education compared to the overall economy has run much hotter than other costs over the past three decades. As the population of 18-year-olds declines, however, we see an ebbing of college education price increases.

Goods can usually be produced anywhere.  In an economy where dollars travel freely, buyers typically purchase from the low-cost provider who delivers the desired level of quality. Your toaster can come from China, yet your barber (a service) better be in the neighborhood. As international trade and transportation logistics continue to improve, we see a natural downward pressure on the price of goods. But the service sector is another story.

We get to choose some financial expenses and lifestyle choices, although others we must accept. People planning to retire commonly ask how to calculate the future rate of inflation.   Projecting what price increases lie ahead is central to anticipating annual income needs.  Sadly, there is no magic number. In my experience, the assumed number is usually flawed and can vary significantly from one family to the next.

For example, if you enjoy travelling, you will likely incur many service expenses including hotels, dining and transportation; thus you should expect travel inflation will be higher than the reported CPI. Travel expenses tend to increase in the early years of retirement and slow later on as people take fewer trips.  

On the other hand, if you are a homebody who does your own yardwork and property improvements, then you will likely encounter lower inflation levels relative to your traveling friends. The key point is that your personal inflation rate is unique based on your age and your lifestyle. The headline CPI number is important only as a general gauge.

The more we consider prices as they relate to goods and service aspects of the economy – and the lifestyle of the investor - the more accurate we can be in estimating an inflation number.  For now, airlines are loving lower oil prices and young folks buying their first television are smiling ear to ear.

Follow AdviceIQ on Twitter at @adviceiq.

Joseph “Big Joe” Clark, CFP, is the managing partner of the Financial Enhancement Group LLC, an SEC Registered Investment Advisory firm in Indiana. He is the host of Consider This with Big Joe Clark, found on WQME and iTunes. Big Joe can be reached at bigjoe@yourlifeafterwork.com, or (765) 640-1524. Follow him on Twitter at @Big Joe Clark and on Facebook at http://www.facebook.com/FinancialEnhancementGroup.

Securities offered through and by World Equity Group Inc. Member FINRA/SIPC. Advisory services can be offered by the Financial Enhancement Group (FEG) or World Equity Group. FEG and World Equity Group are separately owned and operated.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

]]> What will inflation be in coming years? The real answer is that it varies according to your age and spending patterns. Inflation wallops someone with kids in college, and is hardly noticeable to stay-at-home types. Another consideration: Do you buy more goods  (whose prices are going down) than services (going up, mostly).

Inflation is a sustained increase in prices for general goods and services in the economy and is typically measured annually. Theoretically speaking, as inflation rises, every dollar you own buys a smaller amount of a good or service. 

While the reported inflation rate (typically reported as the CPI or Consumer Price Index) is important for Social Security income calculations, which rise with the index, it may not accurately reflect your individual inflation rate.

According to the Wall Street Journal, the overall inflation rate is running less than 2% per year, but that figure masks a division between goods and services. 

The cost of services is climbing while prices for goods are declining. For example, a man’s suit is 3.7% cheaper than it was in 2010 but 9.2% more expensive to dry clean. TV prices have fallen nearly 58% over the same period, while cable TV service costs 13.7% more.  

Similarly, the inflation rate for higher education compared to the overall economy has run much hotter than other costs over the past three decades. As the population of 18-year-olds declines, however, we see an ebbing of college education price increases.

Goods can usually be produced anywhere.  In an economy where dollars travel freely, buyers typically purchase from the low-cost provider who delivers the desired level of quality. Your toaster can come from China, yet your barber (a service) better be in the neighborhood. As international trade and transportation logistics continue to improve, we see a natural downward pressure on the price of goods. But the service sector is another story.

We get to choose some financial expenses and lifestyle choices, although others we must accept. People planning to retire commonly ask how to calculate the future rate of inflation.   Projecting what price increases lie ahead is central to anticipating annual income needs.  Sadly, there is no magic number. In my experience, the assumed number is usually flawed and can vary significantly from one family to the next.

For example, if you enjoy travelling, you will likely incur many service expenses including hotels, dining and transportation; thus you should expect travel inflation will be higher than the reported CPI. Travel expenses tend to increase in the early years of retirement and slow later on as people take fewer trips.  

On the other hand, if you are a homebody who does your own yardwork and property improvements, then you will likely encounter lower inflation levels relative to your traveling friends. The key point is that your personal inflation rate is unique based on your age and your lifestyle. The headline CPI number is important only as a general gauge.

The more we consider prices as they relate to goods and service aspects of the economy – and the lifestyle of the investor – the more accurate we can be in estimating an inflation number.  For now, airlines are loving lower oil prices and young folks buying their first television are smiling ear to ear.

Follow AdviceIQ on Twitter at @adviceiq.

Joseph “Big Joe” Clark, CFP, is the managing partner of the Financial Enhancement Group LLC, an SEC Registered Investment Advisory firm in Indiana. He is the host of Consider This with Big Joe Clark, found on WQME and iTunes. Big Joe can be reached at bigjoe@yourlifeafterwork.com, or (765) 640-1524. Follow him on Twitter at @Big Joe Clark and on Facebook at http://www.facebook.com/FinancialEnhancementGroup.

Securities offered through and by World Equity Group Inc. Member FINRA/SIPC. Advisory services can be offered by the Financial Enhancement Group (FEG) or World Equity Group. FEG and World Equity Group are separately owned and operated.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

  ]]> http://current.mnsun.com/2015/09/what-will-inflation-be/feed/ 0