ValuAdder Business Valuation Blog

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.

Classified under the SIC code 8011, the primary care physician practices are part of a large professional health practitioners service industry. In fact, there are over 373,000 medical practices in the US alone. The industry as a whole generates some $202B in annual revenues, and employs over 3,000,000 professional and office staff. However, a typical… Continue Reading


If you are considering an outside investment for your business or looking to put money into a promising company, business valuation is surely to be one of the key data points in your decision making. Significant investments are usually made in order to achieve some strategic goals such as increasing the business revenues, entering a… Continue Reading


One of the most challenging tasks you are likely to face when considering an outside investment is how to determine the value of your company. Referred to by venture capitalists as the post-money valuation, this key step gives you a number of strategic decision data points: What the entire company is worth, known as the… Continue Reading



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



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



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



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


If you are considering buying a small business or offering yours up for sale, the central questions are: What can the business sell for? How should I structure the price and terms of the deal? Valuing a business to estimate its selling price Not surprisingly, the business selling price is related to its value. Measuring… 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