Zweifler’s 20 Questions

One of my guest experts coming up on 19-Jun-2009 will be Walter Zweifler, an expert at valuing companies. (He holds a free valuation webinar on the second Friday of every month here, at 1 PM Eastern time: https://zweifler.eventbrite.com/.)

Since there’s no room on the radio show’s pages for this info — and knowing I’ll want to refer to it again and again — here is some background on him, as well as the full list of his famous “20 Questions.”

Walter Zweifler is an Accredited Senior Appraiser in the American Society of Appraisers – he has been valuing businesses for since 1976. He has valued a commercial bank ESOP (Employee Stock Ownership Plan) in every state of the Union as well as companies in diverse industries for a broad array of enterprise life cycle needs. In the process Walter Zweifler has encountered virtually every valuation challenge. These include: – working with your attorney, accountant – trust department. Zweifler Financial’s motto – “We Value Your Business!” is affirmed by Walter’s curriculum vitae. (See Walter’s CV and company fact sheet here.)

Zweifler’s 20 questions

1. Do you measure your financial condition and performance every month – i.e. analyze your trial balance?

2. Do you get 12 calendar month to date operating statements? – Do you know why you prefer your current accountant?

3. Do you refer to peer performance surveys – regularly?

4. When you ask for credit do you have a specific dollar amount of how much you need?

5. Do you know how long it takes to turnover inventory and receivables?

6. Do track credit line costs at competitor banks?

7. Are you aware of real estate transactions in your neighborhood?

8. Is there a relationship between property taxes paid and transaction prices received for property in your neighborhood?

9. Do you track the value of your owned or targeted real estate – via P & C insurance coverage requirements?

10. Do you protect your know-how and patent equivalents by improving what you have or litigating?

11. Do you track the cost of buying fixed assets and lease / purchase?

12. What back up arrangement team exists in case key employees become competitors?

13. Key competitors, customers, suppliers – Have you targeted them as acquisitions or for merger?

14. Do you rely on any single customer, or supplier?

15. Do you have a trusteed cross purchase contract to assure ownership succession?

16. Are you protected against “technical default” on all of your debts?

17. Is there a succession plan such as an Employee Stock Ownership Plan?

18. Is there any manager capable to holding the fort when or if you become incapacitated?

19. What protection exists against sales personnel flying with the Koop – customer relationships

20. Have you analyzed the flow through sub chapter s election compared to fully taxed sub reporting format?

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