Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.
You have quite a few industry specific valuation multiples to choose from. So if you pick the right ones, you can do quick “apples to apples” comparisons to figure out the value of a company in your sector. Typical valuation multiples You can nail a pretty accurate business value number by using several valuation multiples. … Continue Reading
Do you need to value a business based on comparison to recent sales of similar companies? Then your tools should include carefully selected valuation multiples. That’s because such multiples help you estimate your business value based on the company’s financial performance and actual selling prices of firms in your industry sector. Since no two businesses… Continue Reading
Valuation multiples lie at the heart of business valuation under the market approach. Each business is different. Yet businesses in the same industry group, of similar size and ownership structure may share a number of important factors that drive their value. If there are enough data on similar business sales, you can estimate the value… Continue Reading
Looking beyond the support for the USPAP and AICPA SSVS No 1 standards? ValuAdder team has added compliance with the International Valuation Standards (IVS) to our flagship business valuation and reporting solutions, ValuAdder and Report Builder. IVS adoption as the national business valuation standard The IVS have become the national valuation standards in Australia, New… Continue Reading
If you need a fact-based, objective valuation of a private company, market-based methods are an excellent choice. These methods help you establish the value of a business in comparison to recent sales of similar firms. The most widely used methods to conduct such market-based valuation are these: Comparative transaction method. Guideline publicly traded company method.… Continue Reading
How to create a chiropractic practice valuation? You hear this question a lot, especially when it comes to buying or selling a practice. First, some industry stats: The US and Canadian governments classify chiropractic clinics under the SIC code 8041 and NAICS 62131 industrial classification codes. Chiropractic practices make up a sizable part of the… Continue Reading
Over the recent years we have compiled a wealth of resources on private business valuation and made them freely available to business people and professional advisors like yourself right on this website. Determining the value of private businesses and professional practices has always been a challenge – both for business people and professionals. Despite the… Continue Reading
A simple answer: because it has a direct bearing on what the company is worth. The easiest way to see this is to consider how the business value is determined using the well-known Discounted Cash Flow valuation method. The cost of capital is a major input here in the form of the discount rate. The… Continue Reading
You thought the discounted cash flow method was challenging enough. And what about the mid year convention? Let’s review the basics. One of the central business valuation techniques under the income approach is the discounted cash flow method. It lets you calculate the business value based on three fundamentals: Business earnings forecast, usually annual cash… Continue Reading
It is a standing joke in the business appraisal profession: the business valuation is out of date the moment it is delivered to the client. Business valuation has an expiration date In fact, a key assumption for any business valuation is the date on which it is done. Why is the date so important? Here… Continue Reading
Of all the business valuation methods under the income approach the discounted cash flow technique truly stands out. What makes this method unique? Its solid financial foundation, flexibility in valuing established companies and startups, businesses with steady earnings and rapidly changing profits make this method an excellent choice for appraising all types of businesses. Earnings… Continue Reading
This is no idle question – with cyber attacks on the rise the safety and security of your business computer has never been more important. If you are a professional advisor, the last thing you need is to experience a computer crash in the middle of a time-critical project or sustain a loss of sensitive… Continue Reading
Are you looking for valuation of an employment agency or an executive recruitment firm? Here are some vital industry statistics to consider: Classified under SIC 7361, there are over 36,000 employment agencies of all types and sizes in the US alone. The industry as a whole generates a very impressive $29.9 billion in annual revenues… Continue Reading
Looking for a reliable source of valuation multiples to estimate your business fair market value? Then consider the free resources readily available to you. Best source of company comparables – government mandated filings Public firms involved in mergers and acquisitions of private companies must file government required reports. And this represents one of the most… Continue Reading
Even in a challenging real estate market quite a few specialized construction companies continue to thrive. The secret of success? Here are a few points to ponder: Construction firms in a specialized, well-protected niche, tend to weather the storm better. Established companies with strong reputation in their market place stay busy even as competitors exit.… Continue Reading