An entrepreneur from a young age, Kumi Bradshaw took a hiatus from college to start his first business while still in his teens.

He chuckled as he remembered some of the 'learning opportunities', which spurred him to return to college. In 2006, he completed his MBA studies at Babson College in Massachusetts.

And he proudly touts his alma matter as being ranked number one in entrepreneurship by US News & World Report for the past 14 consecutive years, which should serve him well as he begins his own company, Signal Hill.

However, before he returned to start his business in Bermuda, he finished his studies last year and then completed various projects in the US, which included several business appraisals.

When he did return home, he recognised an opportunity to leverage his education and specific experiences, to fill a gap in the financial services offered to the local business community.

By providing tools to make better strategic decisions and reduce risk for small company owners, professional service providers (lawyers, accountants, insurance providers), financing sources and others, he hopes it will streamline their transactions.

In order to do this, he has been trained as a business appraiser and started his company Signal Hill only a couple of months ago. Yesterday he spoke with The Royal Gazette about his background and what his business will bring to Bermuda. >

You have been involved in entrepreneurship since your teens. Why business appraisal?

I have a passion for entrepreneurship and thanks to my past experiences I have some shared perspective with the typical business owner. Specifically I recognise some of the challenges that can arise, whether setting your business up for sale, looking at buying another business, putting exit strategy together, dealing with other shareholders, or just plain trying to operate your business more effectively.

Business valuation and the discussion around factors that influence the value of your business are important elements of any conversation addressing these types of challenges.

You have been living in the US. Why come back to Bermu<$>

Plainly, I love my country. I think it is important to get perspective from other jurisdictions and I will continue to seek out new experiences. At the end of the day, Bermuda is home.

This is a new service for Bermuda. What does a business appraiser?<$>

I give a supportable opinion of value. To speak plainly, I look at the financial condition of the company, the size of the interest being appraised, the control issues specific to that interest, the risk factors the company faces whether industry-specific, country-specific or company-specific, I look at issues like management, the competitive landscape and a host of other factors.

In addition I have a responsibility to consider the appropriate "standard of value". By this I mean I have to consider issues like the purpose of the appraisal engagement. As an example, a 40-percent interest in a widget factory might be valued differently for divorce purposes than for financing purposes.

At the end of this process I provide a fairly comprehensive report, giving not just a valuation but a detailed analysis. As requested, I also provide recommendations intended to assist the client in finding an appropriate solution.

Why does the Island need this service?

Through conversations with various business owners, professionals and others I recognised that there was a gap. As in North America, the community of those involved with closely or privately held companies appears to be under-served. My service is aimed at providing solutions to the general local business community. The fit is great because almost every local business, whether a retail store, a dentist office, an accounting practice or something else is private or closely-held.

What did Bermudians do in the past for valuations?

My understanding is stop-gap measures have often been used. Rules of thumb may have been leveraged, or a basic look at the book value of assets may have occurred. This sort of approach would be considered inappropriate by the professional business appraisal community.

What you are offering sounds very much like what an accountant would do. What is the difference between you and an accountant?

Let me draw the parallel of comparing different medical professionals, let's say a pediatrician and a neurosurgeon. Specific skill sets, training, and approaches are needed. As you mention that, I believe that only a small percentage of accountants are certified by the AICPA for the niche of business valuation.

So this is a new product for Bermudian business, are you also new to the business?

Well I am just getting established locally, but have completed projects overseas as well as one or two on-island. A sample of past clients include a Dunkin' Donuts franchisee with 30 plus units, an HVAC manufacturer in the Midwest, and a local consulting company.

What qualifies you to be a business appraiser?

My experiential background, my academic training and my specific professional training with the Institute of Business Appraisers (IBA).

Have you found it difficult establishing yourself and a new company in Bermuda?

I've been pleased to receive quite a bit of support. People's reactions have clearly indicated a need, now it's just a matter of continuing to provide good work product, network, form relationships and build the company.

I must say one of the exciting opportunities is communicating with lawyers and other advisors so they understand how they can best use my services to provide more effective solutions to address their clients' needs.

You have only just moved into office space and returned home. Have you had much interest?

Thank goodness, yes! It's been a bit of a calculated risk to take this approach to one's career but I'm comfortable with that. The great thing about the services I provide is that once the client is educated and understands how to leverage an appraisal, it sells itself.

Where do you see the future of the business going?

I'm not sure but I'm excited. One thing other professional business appraisers have told me is that when a business community gets this type of service, increased activity tends to follow, whether purchase/sale transactions, mergers, increased lending to businesses, increased investment etc. etc.

One important area in which I have been encouraged is to begin conversations with the professionals involved in estate planning and trusts. We'll see what the future brings.

If you would like to contact Mr. Bradshaw, he can be reached at: 295-3301 or 333-5864 or via email at kumi@signalhillbda.com.