It should come as no surprise that cyber crooks are always after your money. So doing business valuations makes you a most desirable target for the criminals. Think about it – business valuation deals with money, lots of it. In fact, business ownership may be the most valuable possession people hold. Yes, business values even… Continue Reading
If you are looking to figure out what a private business is worth, a natural tendency is to check the market for guidance. Think about it – whenever you need a product or service, a key question is how much to shell out. The question of a reasonable price for an asset is usually seen… Continue Reading
When it comes to business valuation, the market approach reigns supreme. Think about it – where else can you glean the values of businesses better than from the active, observable market place where companies change hands every day? Unsurprisingly, the International Valuation Standards or IVS for short, accord a special place to the market-based valuation… Continue Reading
Valuing a business? Then you would do well to heed the requirements of the USPAP standards. USPAP is a short form for the Uniform Standards of Professional Appraisal Practice. And these renowned standards govern valuation of all types of assets, including real and personal property, collectibles, and businesses. USPAP standard 9 covers business valuation. In… Continue Reading
Half the battle in business valuation is to clearly state what is being valued. Your business appraisal would be misleading unless you define what equity or debt capital you have included in your value calculations. Equity is just another term for owners’ interest in the business. If you are valuing a corporation this ownership interest… Continue Reading
No surprises there – business valuation delves into some pretty sensitive information. Think about it – generally no public record of a private company financial performance, let alone its value exists. Business owners are not usually ecstatic telling the world how much they are worth. If a private business is put up for sale, business… Continue Reading
Ever wonder why business appraisers take their time to come up with an accurate, defensible opinion of value? If you thought the devil is in the details, you are on the right track. What is included in your business valuation? To keep things interesting, business valuation can measure business value to just about any definition.… Continue Reading
Even the most experienced business appraisers get confused on occasion. Do the discount or cap rates apply to valuing minority or controlling business ownership interests? One share of company stock – a classical minority ownership interest Why should you care? Because values of controlling shares of business ownership can be a lot higher than the… Continue Reading
If you are valuing a business, assessing the company’s earning capacity and risk should sound familiar. Risk estimation gives you the all-important discount rate to plug into your business valuation. As a result, you can then use it with the discounted cash flow method. Business appraisers use a number of ways to calculate the discount… Continue Reading
Planning on valuing a business in an international setting? Then consider complying with the International Valuation Standards (IVS). Just about in any jurisdiction where business assets are valued, standard compliance is key and the IVS rules the roost. Investigations that precede your valuation One of the key requirements under the IVS is a properly conducted… Continue Reading
Are you valuing a business and plan to share your appraisal results with other business people or professionals? Then make sure you comply with major appraisal standards especially the USPAP valuation standard rules. Perhaps the most important and best known professional standard governing all kinds of appraisals, including business valuation, is the venerable USPAP. This… Continue Reading
Ask a finance professor about the best business valuation method. The answer will be there are three approaches to choose from. When pressed for a simple answer though, even the professor would admit that nothing beats the market comps for valuing a business. Benefits of market comps in business valuation Just think of all the… Continue Reading
Business people have a number of reasons to get a business valuation. So it’s small wonder that business appraisers have come up with a plethora of services to address their clients’ requirements. Not all business valuation experts offer all the services. For example, many firms specialize in certain areas, such as litigation support or estate… Continue Reading
Having trouble finding a set of business sale comps to figure out what your company is worth? You are not alone. The market approach to business valuation offers undeniable advantages when valuing a company. But it suffers from one flaw – you need to have reliable, current, and transparent business sale comps. Valuing public company… Continue Reading
If your company looks like most businesses, you may have noticed the familiar picture. Some business assets that appear on the books are no longer around. And others that the company uses all the time don’t show up on the records. Business property taxes and business asset values Sooner or later it comes time to… Continue Reading