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.

Pick up a text book on corporate finance and you will run right into the discounted cash flow valuation method. It is so important that it usually deserves a chapter on its own. Students sweat it, professors hammer in the fundamentals, professionals remember the bruising experience studying the DCF method for years afterwards. So what’s… Continue Reading


If you are valuing businesses internationally, it is wise to consider compliance with the International Valuation Standards or IVS for short. These standards cover valuation of all types of assets world-wide, including businesses, real property, personal business property, market securities and more. In the United States, the USPAP set of standards has long governed how… Continue Reading



In the complex world of business valuation keeping things simple may seem as a distant dream. Just think about the challenges faced in valuing a company: analysis of economic conditions, forecasting business earnings, assessing risk, choosing the right valuation methods and interpreting results that may puzzle the unwary. With so many moving parts, it’s small… Continue Reading



In the context of business valuation, this is more commonly referred to as excess earnings. Do not confuse it with the notion of business people making more than they should. Excess earnings is a technical term and it plays a central role when valuing a business under the asset approach. This valuation method is formally… Continue Reading



Whenever the subject of business valuation comes up, the notion of valuation multiples is sure to follow. Business people and professional appraisers are quick to point out their favorite valuation multiples for a ballpark estimate of business value. Business sale comps – market barometer of value What is behind the popularity of these valuation tools?… Continue Reading


This may be obvious to the professional appraiser, but many business people often wonder – why are business earnings forecasts such an essential part of business valuation? Shouldn’t a business be valued on its historic financial performance record? Why do a business valuation? Think about a typical situation in which a business needs to be… Continue Reading




This group of business assets is of increasing importance to business value creation. Here is the short list: Trademarks and service marks Non-compete agreements Website domain names Trade marks and service marks are generally protected intellectual property. Businesses often seek their registration, such as the Federal trademarks issued by the US Patents and Trademarks office… Continue Reading


Business valuation is a constant challenge for the business people and professionals alike. While many security analysts do not have the accounting background, they often engage in valuing companies. Professionally managed firms, especially public companies, must adhere to the consistent financial accounting and reporting rules such as the GAAP mandated in the US by the… Continue Reading