If you talk to a professional business appraiser, it won’t be long before you hear about the business valuation approaches and methods. These are the tools of the trade – and it is important to understand their relationship. Business appraisers enjoy having an arsenal of tools at their disposal. This gives them the flexibility to… Continue Reading
If you own an established industrial equipment rental and leasing business, plan to buy one or need to provide a business appraisal for a client, consider adding the market-based valuation methods to your toolkit. Classified under the SIC code 7377, profitable firms operating in a well defined, protected niche, are quite valuable and sell often. This… Continue Reading
Our customers often ask us this question: ValuAdder offers a number of business valuation methods. Does using multiple valuation techniques reduce business risk? Our answer is this: applying a number of methods to value a business helps you reveal and assess the business risk much better than using just one method. Appraising a business based… Continue Reading
If you want a business appraised by a qualified business analyst, you are presented with a bewildering array of choices. There are no local or federal license requirements for business appraisers. Instead, a number of professional organizations offer education and professional certifications for appraisers. Each organization has its own set of appraiser endorsement requirements and… Continue Reading
Of all the valuation methods out there, which ones are the best? The answer is it depends. If you need a sure fire prescription for an accurate, defensible business valuation, reach out for the business valuation methods the professional appraisers use. Each method has its own strengths and weaknesses. Because it reveals your business value… Continue Reading
Are you planning to obtain a veterinary practice valuation? If you own a veterinary practice, consider buying one or plan to open a new clinic, here are some interesting industry statistics. Classified under the SIC 0742 code, there are over 37,000 vet practices in the US alone. The industry as a whole generates some $12.2B… Continue Reading
Whether you are valuing an established company or a start-up, the income-based business valuation methods are a wise choice. For businesses that tend to generate a steady stream of earnings, the direct capitalization methods such as Multiple of Discretionary Earnings or Capitalization of Earnings work very well. Using these valuation techniques you can assess the… Continue Reading
Hardware stores, classified under SIC 5251 and NAICS 44413, make up a sizable part of the retail industry. In the US alone there are over 27,000 hardware stores in operation employing just over 173,000 staff. Moreover, this retail industry segment generates more than $17 billion in annual gross sales. Hardware retail business is small business… Continue Reading
If you take a peek at a typical business valuation report, one of the elements that appears prominently in a separate section is the date of the appraisal. In fact, professionally done business appraisals are only valid as of that date. Clearly, business valuation experts know that business value can change past the valuation date.… Continue Reading
Do you own a small pest control company? Perhaps plan to buy one? In either case, knowing what the business is worth is essential. Privately owned pest control firms, classified under the SIC code 7342 and NAICS 56171, are a common service business. Established companies in this industry, especially those with a track record of positive… Continue Reading
Classified under the SIC 5719 code and NAICS 337133, home furnishings stores are a major segment of the retail industry. If you need to value such a business, you have a choice of well-known methods to get the job done. Perhaps the best known approach to valuing a home furnishings company is by comparison to… Continue Reading
Catering companies make up a major segment of the food and drink industry. They fall under the SIC 5812 and NAICS 72232 industrial classification.. Successful catering businesses sell quite often. So if you need to determine the fair market value of your company, you should have plenty of market evidence. In fact, valuation multiples derived from… Continue Reading
Getting a business appraisal that is accurate and defensible can make a difference of thousands and even millions of dollars. Whether you are planning on a business sale or purchase, handling a legal dispute or tax matter, a key part of your strategy should be knowing what the business is worth. Since the stakes are high, it… Continue Reading
Perhaps the best known reasons for getting a business valuation are a business sale or purchase and handling a legal challenge such as divorce or partner dispute. You can also use business valuation as a strategic planning tool. And one of the most important questions to address is whether you should keep your doors open… Continue Reading
The Multiple of Discretionary Earnings is a classical example of direct capitalization methods under the Income Approach to business valuation. Using this technique you can determine your business value as a capitalized multiple of business discretionary cash flow. The valuation multiplier used by the Multiple of Discretionary Earnings method is built up based on your… Continue Reading